Assume that, on 1/1/06, Matsui Co. paid $1,200,000 for its investment in 60,000 shares of Yankee Inc.
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Assume that, on 1/1/06, Matsui Co. paid $1,200,000 for its investment in 60,000 shares of Yankee Inc. Further, assume that Yankee has 200,000 total shares of stock issued. The book value and fair value of Yankee's identifiable net assets were both $4,000,000 at 1/1/06. The following information pertains to Yankee during 2006: Net Income$200,000 Dividends declared and paid$60,000 Market price of common stock on 12/31/06 $22/share what amount would Matsui report in its year-end 2006 balance sheet for its investment in Yankee?
$1,320,000
$1,260,000
$1,242,000
None of the above is correct.
Related Book For
Intermediate Accounting
ISBN: 978-0324300987
10th Edition
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
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