Coachmen Inc. (formerly names Jaynes) acquired all of Rose Co.'s (formerly names Aaron) common stock on January 1, 2010, by issuing 11,000 shares of $1 par value common stock. Coachmen' shares had a $17 per share fair value. On that date, Rose reported a net book value of $120,000. However, its equipment (with a five-year remaining life) was undervalued by $6,000 in the company's accounting records. Any excess of consideration transferred over fair value of assets and liabilities is assigned to an unrecorded patent to be amortized over ten years. (You will need to change the column names to the new names to complete this problem).

What balance would Coachmen' Investment in Rose Co. account have shown on December 31, 2010, when the equity method was applied for this acquisition?

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The following figures came from the individual accounting records of these two companies as of December 31, 2010: Jaynes Inc. Aaron Co. 2$ Revenues 720,000 276,000 Expenses 528,000 144,000 Not given Investment income Dividends paid 100,000 60,000 The following figures came from the individual accounting records of these two companies as of December 31, 2011: Aaron Co. Jaynes Inc. Revenues 2$ 840,000 336,000 552,000 Expenses Investment income 180,000 Not given Dividends paid Equipment Retained earnings, 12/31/11 balance 110,000 50,000 600,000 360,000 216,000 960,000