Question 15.2: Branch, a fictitious company, purchases a 20 percent interes...

International Financial Statement Analysis

Branch, a fictitious company, purchases a 20 percent interest in Williams (a fictitious company) for $200,000 on 1 January 2007. Williams reports income and dividends as follows:

Calculate the balance in the investment in Williams’s account that appears on Branch’s balance sheet.

	Income	Dividends
2007	$200,000	$50,000
2008	300,000	100,000
2009	400,000 ______	200,000 ______
	$900,000	$350,000

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