What balance in the investment in associate - rance ltd

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On January 1, 2020, Ildiko Corporation purchased a 35% interest in the common shares of Rance Ltd. for $60,000. Rance Ltd. reported profit and paid dividends as follows:

2020 - profit $40,000; dividends paid $50,000

2021 - profit $85,000; dividends paid $70,000. Assume that Ildiko Corporation uses the equity method to account for its investment in Rance Ltd.

Problem 1: The balance in the "Investment in Associate - Rance Ltd" account on Ildiko's balance sheet at December 31, 2020 is

Multiple Choice

Option 1: $103,750

Option 2: $64,750

Option 3: $60,000

Option 4: $61,750

Option 5: None of these

Reference no: EM132664526

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