Question 68 3 pts On July 1, 20x1, Sanchez Corporation acquired 3,000 shares (20% ownership) of...

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Question 68 3 pts On July 1, 20x1, Sanchez Corporation acquired 3,000 shares (20% ownership) of Beal Corporation common stock at $40 per share plus brokerage fees of $600. The investment of $120,000 was $6,000 greater than 20% of the equity of Beal because inventory was understated by $30,000. Beal reported net income of $270,000 for the year and paid dividends of $2 per share at the end of each quarter. The market value of the Beal shares is $42 per share at December 31, 20x1. Under the fair value method, what would the company report in the 20x1 income for this investment? Edit View Insert Format Tools Table 12pt Paragraph BIUA Question 68 3 pts On July 1, 20x1, Sanchez Corporation acquired 3,000 shares (20% ownership) of Beal Corporation common stock at $40 per share plus brokerage fees of $600. The investment of $120,000 was $6,000 greater than 20% of the equity of Beal because inventory was understated by $30,000. Beal reported net income of $270,000 for the year and paid dividends of $2 per share at the end of each quarter. The market value of the Beal shares is $42 per share at December 31, 20x1. Under the fair value method, what would the company report in the 20x1 income for this investment? Edit View Insert Format Tools Table 12pt Paragraph BIUA

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Under the fair value method the income from the investment is recognized as the sum of the divid... View the full answer