Question: Franklin the ability to apply significant influence to Johnson's operating and financing policies. Johnson reports assets on that date of $ 1 , 5 8

Franklin the ability to apply significant influence to Johnson's operating and financing policies. Johnson reports assets on that date of $1,589,000 with liabilities of $592,000. One building with a 7-year remaining life is undervalued on Johnson's books by $234,500. Also, Johnson's book value for its trademark (10-year remaining life) is undervalued by $252,500. During the year, Johnson reports net income of $172,000 while declaring dividends of $110,000. What is the Investment in Johnson Company balance (equity method) in Franklin's financial records as of December 31?
A- $618,400
B - $608,300
C - $663,700
D - $594,900
****C IS INCORRECT****

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