What is the year-end balance of the equity investment


Paris Corporation purchases an investment in Hollywood, Inc. at a purchase price of $6 million cash, representing 45% of the book value of Hollywood, Inc. During the year, Hollywood reports net income of $700,000 and pays $180,000 of cash dividends. At the end of the year, the market value of Paris's investment is $7.4 million. What is the year-end balance of the equity investment in Hollywood?

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Accounting Basics: What is the year-end balance of the equity investment
Reference No:- TGS042850

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