On January 1, 2009, Jumper Co. acquired all of the common stock of Cable Corp. for $540,000.

Question:

On January 1, 2009, Jumper Co. acquired all of the of Cable Corp. for $540,000. Annual amortization associated with the purchase amounted to $1,800. During 2009, Cable earned net income of $54,000 and paid dividends of $24,000. Cable's net income and dividends for 2010 were $86,000 and $24,000, respectively.
Required:Assuming that Jumper decided to use the partial equity method, prepare a schedule to show the balance in the investment account at the end of 2010. Show all of your work.
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...