Port Company purchased 30,000 of the 100,000 outstanding shares of Sund Company common stock on January...

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Port Company purchased 30,000 of the 100,000 outstanding shares of Sund Company common stock on January 1, 20X2, for $180,000. The purchase price was equal to the book value of the shares purchased. Sund reported the following: Year 20X2 28X3 20x4 Net Income Dividends $ 40,000 $ 25,000 30,000 5,000 Required: Compute the amounts Port Company should report as the carrying values of its investment in Sund Company at December 31, 20X2, 20X3, and 20X4. 20X2 20X3 20X4 Amounts Port Company purchased 30,000 of the 100,000 outstanding shares of Sund Company common stock on January 1, 20X2, for $180,000. The purchase price was equal to the book value of the shares purchased. Sund reported the following: Year 20X2 28X3 20x4 Net Income Dividends $ 40,000 $ 25,000 30,000 5,000 Required: Compute the amounts Port Company should report as the carrying values of its investment in Sund Company at December 31, 20X2, 20X3, and 20X4. 20X2 20X3 20X4 Amounts

Answer rating: 100% (QA)

The carrying value of Port Companys investment in Sund Company can be calculated by adjusting the in... View the full answer