Question: =+EX 15-9 Equity method for stock investment obj. 3 692 Chapter 15 Investments and Fair Value Accounting On January 15, 2010, National Star Inc. purchased

=+EX 15-9 Equity method for stock investment obj. 3 692 Chapter 15 Investments and Fair Value Accounting On January 15, 2010, National Star Inc. purchased 80,000 shares of Krypton Labs Inc.

directly from one of the founders for a price of $55 per share. Krypton has 250,000 shares outstanding, including the National Star shares. On July 2, 2010, Krypton paid $217,000 in total dividends to its shareholders. On December 31, 2010, Krypton reported a net income of $735,000 for the year. National Star uses the equity method in accounting for its investment in Krypton Labs.

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