Solution Manual

,Acquisition Cost 600,000
Net Income 2017 25,000
Dividend 2017 (5,000)
Net Income 2018 50,000
Dividend 2018 (2,500)
Investment at 31 Dec 2018 667,500

,
, 1.) FV of Insor at the date of acquisition 215,000
Add: Investment Income 16,000
Less: Dividend (1,200)
Investment value end of 2021 229,800


2.) FV of Insor at the date of acquisition 215,000
Add: Investment Income 16,000
Less: Dividend (1,200)
Investment value end of 2021 229,800
Less 2022 loss (26,000)
Investment value end of 2022 203,800