Jans Inc. acquired all of the outstanding common stock of Tysk Corp. on January 1, 2016, for $372,000. Equipment with a ten-year life was undervalued on Tysk's financial records by $46,000. Tysk also owned an unrecorded customer list with an assessed fair value of $67,000 and an estimated remaining life of five years.Tysk earned reported net income of $180,000 in 2016 and $216,000 in 2017. Dividends of $70,000 were paid in each of these two years. Selected account balances as of December 31, 2018, for the two companies follow. JansTyskRevenues$1,080,000 $840,000 Expenses 480,000 600,000 Investment income Not given 0 Retained earnings, 1/1/18 840,000 600,000 Dividends paid 132,000 70,000 ?If the equity method had been applied, what would be the Investment in Tysk
Corp. account balance within the records of Jans at the end of 2018?
A. $372,000.
B. $612,100.
C. $744,000.
D. $844,150.
E. $774,150.
Answer: C
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