1. Gottsbucks paid $500,000 to buy 10,000 shares of Selfie Stick, on January 2, 2018. 3....

 

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1. Gottsbucks paid $500,000 to buy 10,000 shares of Selfie Stick, on January 2, 2018. 3. 2. Selfie Stick declared and paid a $1 per share cash dividend on December 15, 2018. Selfie Stick reported Net Income of $600,000 for the year ended December 31, 2018. 4. The fair (market) value of Selfie Stick stock was $55 per share (total value of 10,000 shares is $550,000) on December 31, 2018. What dollar amount will Gottsbucks show as an asset on its December 31, 2018 Balance Sheet for the Selfie Stick stock, if it owns 30% of the stock of Selfie Stick, and the Equity Method is used to account for the shares? 1. Gottsbucks paid $500,000 to buy 10,000 shares of Selfie Stick, on January 2, 2018. 3. 2. Selfie Stick declared and paid a $1 per share cash dividend on December 15, 2018. Selfie Stick reported Net Income of $600,000 for the year ended December 31, 2018. 4. The fair (market) value of Selfie Stick stock was $55 per share (total value of 10,000 shares is $550,000) on December 31, 2018. What dollar amount will Gottsbucks show as an asset on its December 31, 2018 Balance Sheet for the Selfie Stick stock, if it owns 30% of the stock of Selfie Stick, and the Equity Method is used to account for the shares?

Answer rating: 100% (QA)

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