Question: On January 1 , 2 0 1 9 , Red Hawk Company pays $ 7 0 , 0 0 0 ( cash ) for a

On January 1,2019, Red Hawk Company pays $70,000(cash) for a 10 percent interest in Wolf Companys common stock. Because market quotes for Wolfs stock are readily available on a continuing basis, the investment account has been appropriately maintained (think accounted for) at (using the) fair value.

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