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What is the balance in ALPHA Investment in BETA Ltd account

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Question - On January 1, 2019 ALPHA Ltd. joined with three other companies to form a joint venture, BETA Ltd. ALPHA's share of the joint venture is 42%. ALPHA contributed $35,000. BETA reported net earnings of $20,000 during 2019 and did not pay any dividends. Near the end of 2019, ALPHA sold $40,000 of inventory to BETA. BETA had not sold any of this inventory by year end. The gross profit on the inventory was 10,000. The tax rate is 40%. ALPHA uses the equity method to account for its investment in BETA. What is the balance in ALPHA'S "Investment in BETA Ltd." account at December 31, 2019?

Reference no: EM133078359

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