What was balance in x investment in y account as of dec

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On January 1st, 2020, X acquired 30,000 shares(30% of the outstanding shares) of Y at a price of $10.00 per share giving it significant influence over Y. Y had net income of $400,000 for the year ended December 31st,2020 and declared and paid dividends of $160,000 to its shareholders on December 31st,2020. On the date of acquisition, Y's net book value was $1,600,000 and there was no difference between the fair value and book value of Y's identifiable net assets.

Problem 1: What was the balance in X's "Investment in Y' account as of December 31st,2020?

a. $300,000
b. $252,000
c. $372,000
d. $228,000

Reference no: EM132936442

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