Questions 1 and 2 pertain to Waltham Corp Waltham Corp owns 24,000 of the 60,000 outstanding shares of Melrose Corp's common stock and uses the

Questions 1 and 2 pertain to Waltham Corp Waltham Corp owns 24,000 of the 60,000 outstanding shares of Melrose Corp’s common stock and uses the equity method of accounting (not the fair value option). During 2010 Melrose earned $200,000 and paid cash dividends of $160,000. Melrose is Waltham’s only investment.1. If the beginning balance in the investment in Melrose account was $400,000, the end-of-year