Assume that, on January 1, 2016, Matsui Co. paid $1,296,000 for its investment in 48,000 shares of
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Assume that, on January 1, 2016, Matsui Co. paid $1,296,000 for its investment in 48,000 shares of Yankee Inc. Further, assume that Yankee has 240,000 total shares of stock issued. The book value and fair value of Yankee's identifiable net assets were both $480,000 at January 1, 2016. The following information pertains to Yankee during 2016: |
Net income | $240,000 |
Dividends declared and paid | $72,000 |
Market price of common stock on 12/31/2016 | $29/share |
What amount would Matsui report in its year-end 2016 balance sheet for its investment in Yankee? |
$1,608,000.
$1,368,000.
$1,329,600.
None of these answer choices is correct.
Related Book For
Intermediate Accounting
ISBN: 978-0132162302
1st edition
Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
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