Please help me using the equity methodVaughn Inc. acquired all of theoutstanding common stock of RobertsCo. on January 1, 2020, for $276,000.Annual amortization of $21,000resulted from this acquisition. Vaughnreported net income of $80,000 in2020 and $60,000 in 2021 and paid$24,000 in dividends each year.Roberts reported net income of$50,000 in 2020 and $57,000 in 2021and paid $12,000 in dividends eachyear. What is the Investment in RobertsCo. balance on Vaughn's books as ofDecember 31, 2021, if the equitymethod has been applied?Multiple Choice●• $317,000.$326,000.$341,000.$368,000.$383,000.●

Under equity method of accounting for investments, the investment is recorded at cost and then…

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hn Inc. acquired all of the Canding common stock of Robe

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA2: Investments

Section: Chapter Questions

Problem 25E

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Question

Please help me

using the equity method
Vaughn Inc. acquired all of the
outstanding common stock of Roberts
Co. on January 1, 2020, for $276,000.
Annual amortization of $21,000
resulted from this acquisition. Vaughn
reported net income of $80,000 in
2020 and $60,000 in 2021 and paid
$24,000 in dividends each year.
Roberts reported net income of
$50,000 in 2020 and $57,000 in 2021
and paid $12,000 in dividends each
year. What is the Investment in Roberts
Co. balance on Vaughn's books as of
December 31, 2021, if the equity
method has been applied?
Multiple Choice
●
• $317,000.
$326,000.
$341,000.
$368,000.
$383,000.
●

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