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On 1/1X1, Tuna Company purchases 25% of Stanley, Incorporated on January 1 of the current...

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Accounting

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On 1/1X1, Tuna Company purchases 25% of Stanley, Incorporated on January 1 of the current year for $500,000. This acquisition gives Tuna Company the ability to apply significant influence to Stanley's operating and financing policies and Tuna Company elects to use the equity method of acc ting. Stanley reports assets on that date of $1,600,000 with liablities of $400,000. One buliding with a 15 -year life has a book value of $100,000 an market value of $400,000. During year X1, Staniey, Incorporated reports net income of $140,000, while paying out dividends of $70,000 for the year. At what amount should Tuna report its investment in Staniey on 12/31/X1? Muliple Choire $500,000 $517,500 $530,000 $460,000

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