6. On January 1, 2020, Max Co., paid $1,000,000 for a 30 percent interest in Min Co.'s common stock. This investee had a

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6 On January 1 2020 Max Co Paid 1 000 000 For A 30 Percent Interest In Min Co S Common Stock This Investee Had A 1 (43.64 KiB) Viewed 35 times

6. On January 1, 2020, Max Co., paid $1,000,000 for a 30 percent interest in Min Co.'s common stock. This investee had assets with a book value of $5,000,000 and liabilities of $2,400,000. A patent held by Min Co. having a $30,000 book value was actually worth $100,000. This patent had a ten-year remaining life. Min Co. also owns a building with a useful life of twenty years which is undervalued by $80,000. Any further excess cost associated with this acquisition was attributed to Equipment with a remaining useful life of 5 years. During 2020, Min Co. had net income of $40,000 and declared and paid dividends of $10,000. Assuming Max Co. uses the equity method, what balance should appear in the Investment in Min Co. account as of December 31, 2020? (15 pts)