Brown Corp purchased 20% of the outstanding common stock of Taylor Corp for $250,000 on January 1, 2011. Brown Corp has substantial influence in the decision making at Taylor Corp. In 2011 Taylor Corp reported a net income of $200,000 and paid cash dividends of 100,000.
1. Show the balance sheet of the stock investments on Taylor Corp account on the books of Brown Corp on December 31, 2011.
2. What method did you use to calculate your answer and why.