On January 1, 2018, Nana Company paid $100,000 for 6,200 shares of Papa Company common stock....
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On January 1, 2018, Nana Company paid $100,000 for 6,200 shares of Papa Company common stock. The ownership in Papa Company is 10%. Nana Company does not have significant influence over Papa Company. Papa reported net income of $51,000 for the year ended December 31, 2018. The fair value of the Papa stock on that date was $59 per share. What amount will be reported in the balance sheet of Nana Company for the investment in Papa at December 31, 2018? On January 1, 2018, Nana Company paid $100,000 for 6,200 shares of Papa Company common stock. The ownership in Papa Company is 10%. Nana Company does not have significant influence over Papa Company. Papa reported net income of $51,000 for the year ended December 31, 2018. The fair value of the Papa stock on that date was $59 per share. What amount will be reported in the balance sheet of Nana Company for the investment in Papa at December 31, 2018?
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The initial cost of Nana Companys investment in Papa Company was 100000 for 6200 shares which ... View the full answer
Related Book For
Accounting Principles Part 3
ISBN: 978-1118306802
6th Canadian edition Volume 1
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Kinnear, Joan E. Barlow
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