Bharrat Corporation purchased 40% of Ferris Corporation for $100,000 on January 1. On October 17 of the same year, Ferris Corporation declared total cash dividends of $12,000. At year-end, Ferris Corporation reported net income of $60,000. The balance in the Bharrat Corporation's Long-Term Investment-Ferris account at December 31 should be:

The balance in the Bharrat Corporation's Long-Term Investment-Ferris account at December 31 should be $100,000

Explanation:

The Purchase of 40% of Ferris Corporation for $100,000 is a Financial Asset. A financial asset is a contractual obligation to receive cash.

Bharrat Corporation is expected to receive cash from the investment is has made in Ferris Corporation.

The investment is measured at Cost of $100,000 in the Financial Statements. Declaration of dividend does not affect measurement of the Investment.

forbearance of student loan payments. under forbearance, your loan payments are postponed (or reduced) but interest continues to accrue during the period of forbearance. if you don't pay the interest during that period, the interest may be “capitalized,” which means it is added to your principal balance.