38 On January 1, Puckett Compary paid 52 73 llion for 91,000 shares of Harrisons

Question

38 On January 1, Puckett Compary paid 52 73 llion for 91,000 shares of Harrisons voting common stock, which rep esets a 40 percent irwestment. No allocatio t other specific account was made. Significant influence over Herrison is echieved by this acquisition and so Puckett applies the equity method. Hatrison declated a 52 per share during the year and reported net income of $648,000. What is the balance in the Investment in Harrison account found in Puckett's financial records es of December 31? to goodwill er 10 points Muitiple Choice 3,196,00O. eBook $2,989,200 2,807,200 $%2.916,40o

Explanation / Answer

Balance in the investment in Harrison account = 2730000+(648000*40%)-(91000*2)= $2807200

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