On January 1, 20X1, Prohías, Inc. paid $320 for 80% of the outstanding common stock of Antonio Corp. At that time, Antonio had the following balance sheet:
Antonio Corp. | Balance Sheet | January 1, 20X1 | | | | Assets | Liab. and Stockholder’s Equity | | | | | | | Current Assets | $ 225 | Liabilities | $ 175 | | Fixed Assets | 200 | Common Stock | 140 | | | | Retained Earn. | 110 | | Total | $ 425 | Total | $ 425 |
On the January 1, 20X1 date of acquisition, the book values of current assets and liabilities equaled the fair market values of these items. The fixed assets, which had an estimated useful life of 5 years and no salvage value, were worth $250.
It was determined that the price paid for Antonio could be used to calculate the value of the noncontrolling interest (NCI).
Four years later, on December 31, 20X4, the companies have the following trial balances:
| | Prohías, Inc. | Antonio Corp. | | | dr (cr) | dr (cr) | | Current Assets | 425 | 415 | | Fixed Assets | 1,100 | 200 | | Accum. Deprec. | (900) | (160) | | Investment in Sub. | 320 | | | Liabilities | (375) | (135) | | Common Stock | (200) | (140) | | Retained Earn. | (300) | (160) | | Dividends Paid | 200 | 150 | | Revenue | (925) | (700) | | Expenses | 775 | 530 | | Dividend Income | (120) | | | | 0 | 0 |
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| If the parent had used the simple equity method, what balance would Prohías have carried in its Investment in Subsidiary-Antonio, Inc. account at the beginning of 20X4? |
