Topic: Change to the Equity Method

LO: $7$

$2.$ Tigger, Inc. acquired $10\%$ of Admore Corporation on January $1,2020,$ for $$140,000$ when the book value of Admore's net assets was $$950,000.$ Tigger determined that Admore's stock does not have a readily determinable fair value. During $2020,$ Admore reporteri net income of $$250,000$ and paid dividends of $$40,000.$ On January $1,2021,$ Tigger purchasecian additional $30\%$ of Admore for $$420,000.$ Any excess of cost over book value was attributable to goodwill $($No amortization$).$ On that same date, Tigger changed to the equity method. During $2021,$ Admore reported net income of $$500,000$ and paid dividends of $$80,000.$

Required:

a$.$ What income did Tigger record from Admore in $2020?$

b$.$ What income did Tigger record from Admore in $2021?$

c$.$ What was the balance in Equity Investment at December $31,2021?$