Reference no: EM131790004

Problem

Jans Inc, acquired all of the outstanding common stock of Tysk Corp. on January 1, 2011, for $ 372,000. Equipment with a 10 year life was undervalued on Tysk's financial records by $ 46,000. Tysk also owned an unrecorded  customer list with an assessed fair value of $ 67,000 an and estimated remaining life of five years. Tysk earned reported net income of $ 180,000 in 2011 and $ 216,000 in 2012. Dividends  of $ 70,000 were paid in each of these two years. Selected account balances as of December 31, 2013, for the two companies follows:

                                                            Jans                             Tysk

Revenues                                   $ 1,080,000              $    840,000

Expenses                                       480,000                       600,000

Investment income                        Not given                         0

Retained earnings, 1/1/13             840,000                       600,000

Dividends paid                                132,000                          70,000

If the equity method had been applied, what would be the investment in Tysk Corp. account balance within the records of Jans at the end of 2013?

 0 $ 372,000

 0 $ 612,100

 0 $ 844,150

 0 $ 744,000

 0 $ 774,150