At the beginning of the year, Eagle Corp. purchased 10,000 of the 200,000 shares of common...

 

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At the beginning of the year, Eagle Corp. purchased 10,000 of the 200,000 shares of common stock of Bobcat Inc. at $40 per share as a long-term investment. The records of Bobcat Inc. showed the following by the end of the year: Net Income Dividends Paid $ 500,000 $ 200,000 Market Price per Share $ 38 What amount should Eagle Corp. report in its year-end balance sheet for its investment in Bobcat Inc.? At the beginning of the year, Eagle Corp. purchased 10,000 of the 200,000 shares of common stock of Bobcat Inc. at $40 per share as a long-term investment. The records of Bobcat Inc. showed the following by the end of the year: Net Income Dividends Paid $ 500,000 $ 200,000 Market Price per Share $ 38 What amount should Eagle Corp. report in its year-end balance sheet for its investment in Bobcat Inc.?

Answer rating: 100% (QA)

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