P6-6 On January 1, 2010, Lakemead acquired 45% of the issued shares of Dakota for $75,450. At that date, Lakemead considers that it has significant influence. At this date, the records of Dakota included the following balances:
Share capital ....... $80,000
Retained earnings ..... 60,000
All the identifiable assets and liabilities of Dakota were recorded at fair value except for the following:

The plant has a further three-year life. All the inventory was sold by December 31, 2010. During the four years since acquisition, Dakota has recorded the following annual results:
Year ended ............ Net income (loss)
December 31, 2010 ......... $10,000
December 31, 2011 ......... 23,000
December 31, 2012 ......... (6,000)
December 31, 2013 ......... 22,000
Additional information:
1. There have been no dividends paid or declared by Dakota since the acquisition date.
2. The land owned by Dakota on January 1, 2010, was sold on September 1, 2011, for $75,000.
3. The tax rate is 30%.
4. On January 1, 2014, Lakemead paid $50,000, on the open market, to acquire an additional 10% of Dakota.
Required
(a) Calculate the balance in the Investment in Dakota account at December 31, 2013.
(b) Calculate the balance in the Investment in Dakota account at January 1, 2014.
(c) What would be the impact on the financial statement presentation for Lakemead in 2014?

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Carrying amount Plant (cost $50,000) Land nventory $35,000 50,000 20,000 Fair value $41,000 70,000 24,000