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Madison Corporation purchased 40% of Jay Corporation for $420,000 on January 1 On June 20 of the same year, Jay Corporation d
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Answer #1

Solution:

Dividend received = $105000 *40% = $42,000

Share in Income = $525000*40% = $210,000

Balance in Investment account = Beginning balance + Share in income - Dividend = $420000 + $210000 - $42000 = $588,000

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