Question: PLEASE ANSWER THE QUESTION AND WORK PROBLEM OUT!!! On January 1, 2022, Baxter, Inc. acquired 40% of the outstanding common stock of Anchor Co. for

PLEASE ANSWER THE QUESTION AND WORK PROBLEM OUT!!!

On January 1, 2022, Baxter, Inc. acquired 40% of the outstanding common stock of Anchor Co. for $2,800,000. This investment gave Baxter the ability to exercise significant influence over Anchor. Anchor's assets on that date were recorded at $11,700,000 with liabilities of $4,700,000. There were no differences between book and fair values. During 2022, Anchor reported net income of $600,000. For 2023 , Anchor reported net income of $900,000. Dividends of $40,000 were paid in each of these two years. What was the reported balance of Baxter's Investment in Anchor Co. at December 31, 2023? a. $2,000,000 b. $4.180,000 $3,368,000 d) $2960,000 =$5,352,000

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