On January 1, 2016, American Corporation purchased 25% of the outstanding voting shares of Short Supplies common

Question:

On January 1, 2016, American purchased 25% of the outstanding voting shares of Short Supplies for $232,500 cash. On that date, Short's book value and fair value were both $930,000. The equity method is deemed appropriate for this investment. Short's net income reported on December 31, 2016, was $89,000. During 2016, Short also paid cash dividends in the amount of $28,500. Required: Compute the amount that would be reported for the investment on American Corporation's at December 31, 2016.
Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... 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... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...