What is the year-end balance of the equity investment

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Madison Corporation purchases an investment in Lake Geneva, Inc. at a purchase price of $8 million cash, representing 40% of the book value of Lake Geneva, Inc. During the year, Lake Geneva reports net income of $1,360,000 and pays $335,200 of cash dividends. At the end of the year, the market value of Madison's investment is $10 million.

Problem 1: What is the year-end balance of the equity investment in Lake Geneva?

Reference no: EM132885170

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