Fizzy Cola acquired 35% of the voting stock of National Bottlers on January 1, 2020,...
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Fizzy Cola acquired 35% of the voting stock of National Bottlers on January 1, 2020, at a cost of $50,000,000, an amount equal to 35% of Nationals book value. Fizzy reports its investment using the equity method. In 2020, National reported net income of $7,000,000 and declared and paid dividends of $2,000,000. National sells product to Fizzy at a markup of 25% on cost. Fizzy had $6,000,000 of product purchased from National in its ending inventory, measured at cost to Fizzy. What is Fizzys Investment in National balance reported on its December 31, 2020 balance sheet?
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