Waystar, Inc. purchased a 40% interest in Royco, Inc. for $2…
Waystar, Inc. purchased a 40% interest in Royco, Inc. for $200,000 on January 1, 2021, obtaining significant influence. Both companies have fiscal years ending December 31. Royco reported a net income of $10,000 for the year ending December 31, 2021, and declared and paid total cash dividends of $8,000 on December 31, 2021. The fair value of this investment as of December 31, 2021, was $190,000. Assuming this is the only equity investment that Waystar has, what is the balance for their equity investment account on December 31, 2021?