Kinross Gold Corp. owns equity-method investments in several companies. Suppose Kinross paid $18,000,000 to acquire a 40 percent investment in Best Mine Ltd. Further, assume Best Mine Ltd. reported net income of $1,820,000 for the first year and declared and paid cash dividends of $700,000. 

Calculate the balance in the Investment in Best Mine Ltd. Common Shares account. Assume that after all the above transactions took place, Kinross Gold Corp. sold its entire investment in Best Mine Ltd. common shares for $22,500,000. 

Journalize the sale of the investment. Disregard broker commissions on sale. Calculate the balance in the Investment in Best Mine Ltd.

Answer rating: 100% (QA)

Investment is Minbwlders id Commen shares Cash Ks 18009660 131 cash d... View the full answer