The book value of identifiable net assets

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Reference no: EM131202397

On July 1, 2016, Tremen Corporation acquired 25% of the shares of Delany Company. Tremen paid $3,070,000 for the investment, and that amount is exactly equal to 25% of the book value of identifiable net assets on Delany's balance sheet. Delany recognized net income of $1,100,000 for 2016, and paid $140,000 of dividends each quarter to its shareholders. After all closing entries are made, Tremen's "Investment in Delany Company" account would have a balance of:

Reference no: EM131202397

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