Question: Step by step solution please.thank you Saved Help Save & Exi In January 2020, Domingo, Inc., acquired 20 percent of the outstanding common stock of

Step by step solution please.thank you

Saved Help Save & Exi In January 2020, Domingo, Inc., acquired 20 percent of the outstanding common stock of Martes, Inc., for $846,000. This investment gave Domingo the ability to exercise significant influence over Martes, whose balance sheet on that date showed total assets of $4,428,000 with liabilities of $978,000. Any excess of cost over book value of the investment was attributed to a patent having a remaining useful life of 10 years. In 2020, Martes reported net income of $221,000. In 2021, Martes reported net income of $266,000. Dividends of $94,000 were declared in each of these two years. What is the equity method balance of Domingo's Investment in Martes, Inc., at December 31, 2021? Multiple Choice $905,800. $1,003,000. $874,600. $987,400

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