Bendi Corp. purchased 1,000 shares of Kala Corp, for $16 per share. The investment represents 5% ownership,
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Question:
Bendi Corp. purchased 1,000 shares of Kala Corp, for $16 per share. The investment represents 5% ownership, and Bendi does not have significant influence. The fair value at year-end is $15 per share. Assuming no other transactions occurred, where would the $1 per share difference be reported on the year-end financial statements?
a. Other Income and (Expense)
b. Other Comprehensive Income
c. Operating Income
d. None of the above
Related Book For
Principles of Taxation for Business and Investment Planning 2016 Edition
ISBN: 9781259549250
19th edition
Authors: Sally Jones, Shelley Rhoades Catanach
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