Investment in harrison account


On January 1, Puckett Company paid $1.6 million for 50,000 shares of Harrison's voting common stock, which represents a 40 percent investment. No allocation to goodwill or other specific account was made. Significant influence over Harrison is achieved by this acquisition. Harrison distributed a dividend of $2 per share during the year and reported net income of $560,000. What is the balance in the Investment in Harrison account found in the financial records of Puckett as of December 31?

a. $1,724,000

b. $1,784,000

c. $1,844,000

d. $1,884,000

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Accounting Basics: Investment in harrison account
Reference No:- TGS093754

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