Transcribed Image Text: Ch TB MC Qu. 01-16 Borgin Inc, owns 30% of the outstanding… Borgin Inc. owns 30% of the outstanding voting common stock of Burkes Co. and has

Transcribed Image Text: Ch
TB MC Qu. 01-16 Borgin Inc, owns 30% of the outstanding…
Borgin Inc. owns 30% of the outstanding voting common stock of Burkes Co. and has the ability to significantly influence the investee’s operations and
decision-making. On January 1, 2021, the balance in the Investment in Burkes Co. account was $402,000. Amortization associated with the purchase of
this investment is $8,000 per year. During 2021, Burkes earned income of $108,000 and paid cash dividends of $36,000. Previously in 2020, Burkes had
sold inventory costing $28,800 to Borgin for $48,000. All but 25% of this merchandise was consumed by Borgin during 2020. The remainder wos used
during the first few weeks of 2021. Additional sales were made to Borgin in 2021; inventory costing $33,600 was transferred at a price of $60,000. Oor
this total, 40% was not consumed until 2022.
was the balance in the Investment in Burkes Co. account at the end of 2021?