Answer:
$3,280,000
Step-by-step explanation:
The computation of balance of investments is given below:-
Income after dividends = Net income - Yearly dividends
= $1,200,000 - ($150,000 × 4)
= $600,000
Balance of investments = Amount paid to acquire investments + Share in income after dividends for 6 months
=$3,160,000 + ($600,000 × 40% × 6 ÷ 12)
= $3,160,000 + $120,000
= $3,280,000
Therefore for computing the balance of investments we simply aaplied the above formula.