Calculate the the balance in the investment in bg

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Reference no: EM132701335

On January 1, 2036, Cp9-I5T Company acquired the following investments:

1. 5,540 shares (representing 17%) of BG-8Yt Company stock for $95,000

2. 22,100 shares (representing 45%) of Ix-7n Company stock for $522,000

BG-8Yt Company and Ix-7n Company reported the following information for 2036:

                                                         BG-8Yt Company                Ix-7n Company

Net income                                $220,000                         $320,000

Total dividends paid                           $45,000                         $13,000

Market value of stock at Dec 31           $23 per share              $36 per share

Problem 1: Calculate the total investments shown on Cp9-I5T's December 31, 2036 balance sheet (i.e., calculate the the balance in the investment in BG-8Yt Company + the balance in the investment in Ix-7n Company at December 31, 2036).

Reference no: EM132701335

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