Borgin Incorporated owns 30% of the outstanding voting common stock of Burkes Company and has...
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Borgin Incorporated owns 30% of the outstanding voting common stock of Burkes Company and has the ability to significantly influence the investees operations and decision-making. On January 1, 2024, the balance in the Investment in Burkes Company account was $402,000. Amortization associated with the purchase of this investment is $8,000 per year. During 2024, Burkes earned income of $108,000 and paid cash dividends of $36,000. Previously in 2023, Burkes had sold inventory costing $28,800 to Borgin for $48,000. All but 25% of this merchandise was consumed by Borgin during 2023. The remainder was used during the first few weeks of 2024. Additional sales were made to Borgin in 2024; inventory costing $33,600 was transferred at a price of $60,000. Of this total, 40% was not consumed until 2025.
What was the balance in the Investment in Burkes Company account at the end of 2024?
Multiple Choice
$412,432
$413,872
$401,136
$410,148
$418,840
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