Bharrat Corporation purchased 40% of Ferris Corporation for $100,000 on January 1. On October 17 of the same year, Ferris Corporation declared total cash dividends of $12,000. At the end of the year, Ferris Corporation reported net income of $60,000. 

What should be the  balance in the Bharrat Corporation Long Term Investment Ferris Account as of December 31?

Answer rating: 100% (QA)

The investment in Ferris Corporation is accounted for using the equity method since Bharrat Corporat... View the full answer