Problem
On January 2, 20X1 Troquel Corporation bought 10 percent of Zafacon Corporation's capital stock for $80,000. Zafacon's net income for the years ended December 31, 20X1 and December 31, 20X2 were $30,000 and $20,000, respectively. During 20X2 Zafacon declared a dividend of $60,000. No dividends were declared in 20X1. What would be the balance of its investment account at the end of 20X2?