On January 1, 2020, Barber Corp. paid $1,160,000 to acquire Thompson Co. Thompson maintained separate incorporation. Barber used the equity method to account for the investment. The following information is available for Thompson’s assets, liabilities, and stockholders' equity accounts on January 1, 2020:

	Book Value			Fair Value
Current assets	$	130,000		$	130,000
Land		75,000			193,000
Building (twenty-year life)		250,000			276,000
Equipment (ten-year life)		540,000			518,000
Current liabilities		26,000			26,000
Long-term liabilities		124,000			124,000
Common stock		233,000
Additional paid-in capital		389,000
Retained earnings		223,000

Thompson earned net income for 2020 of $134,000 and paid dividends of $51,000 during the year.

What is the balance in Barber’s investment in a subsidiary account at the end of 2020?

Thompson earned net income for 2020 of $134,000 and paid dividends of $51,000 during the year.

Required

In Barber's accounting records, what amount would appear on December 31, 2020, for equity in subsidiary earnings?

Answer rating: 100% (QA)

Particlars Amount Amount paid to acquire 100 share Less Book val... View the full answer