On January 1, 2009, Jumper Co. acquired all of the common stock of Cable Corp. for $540,000. Annual amortization associated with the purchase amounted to $1,800. During 2009, Cable earned net income of $54,000 and paid dividends of $24,000. Cable's net income and dividends for 2010 were $86,000 and $24,000, respectively.
Required:
Assuming that Jumper decided to use the partial equity method, prepare a schedule to show the balance in the investment account at the end of 2010. Show all of your work.