On January 1, 2017, Iris, Inc. purchased 35% of Crayola Co.’s outstanding voting stock for $70,000. During 2017, Crayola

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answerhappygod
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On January 1, 2017, Iris, Inc. purchased 35% of Crayola Co.’s outstanding voting stock for $70,000. During 2017, Crayola

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On January 1, 2017, Iris, Inc. purchased 35% of Crayola Co.’s
outstanding voting stock for $70,000. During 2017, Crayola earned
net income of $40,000, and paid Iris a cash dividend of $2,500. On
December 31, 2017, Iris’ investment in Crayola had a fair market
value of $65,000. If Iris accounts for this investment using the
equity method, what will the balance in its Investment in Crayola
account be?
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