Integrity Co. purchased 100% of Accountability Corp. on January 1, 2021 for $500,000. On that...
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Integrity Co. purchased 100% of Accountability Corp. on January 1, 2021 for $500,000. On that date, Accountability's stockholders' equity was $500,000, and the recognized book values of Accountability's individual net assets approximated their fair values. Accountability had net incomes of $120,000 and $130,000 for 2021 and 2022, respectively. Accountability paid dividends amounting to $15,000 in both years. Integrity uses the cost method to account for its pre-consolidation investment in Subsidiary.
What was the balance in Equity Investment in Parent's books at December 31, 2022?
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