What is the equity method balance of domingos investment

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Reference no: EM131959436

In January 2014, Domingo, Inc., acquired 20 percent of the outstanding common stock of Martez, Inc., for $795,000.

This Investment gave Domingo the ability to exercise significant Influence over Martez. Martez's assets on that date were recorded at $4, 405,000 with liabilities of $995,000.

Any excess of cost over book value of the Investment was attributed to a patent having a remaining useful life of 10 years. in 2014, Martez reported net Income of $191,000. in 2015, Martez reported net Income of $245, 500.

Dividends of $119,000 were declared in each of these two years. What Is the equity method balance of Domingo's Investment in Martez, Inc., at December 31, 2015?

Reference no: EM131959436

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