What is the equity method balance of walter investment

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Question 1: On January 1, 2020, Walter, Inc. acquired 20% of the outstanding common stock of Brett, Inc. for $700,000. This investment gave Walter the joint control over Brett. Brett's assets on that date were recorded at $3,900,000 with liabilities of $900,000. Any excess of cost over book value of the investment was attributed to patent having a remaining useful life of 10 years.In 2020, Brett reported net income of $170,000. In 2021, Brett reported net income of $210,000. Dividends of $70,000 were paid in each of these two years. What is the equity method balance of Walter's Investment in Brett, Inc. at December 31, 2021?

Reference no: EM132587597

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