Question: On January 1 , 2 0 2 2 , an investor purchases for $ 4 0 0 , 0 0 0 a 1 5 %

On January 1,2022, an investor purchases for $400,000 a 15% ownership in an investee. The investees common stock has a readily determinable fair value. On January 1,2022, the book value of the investees assets and liabilities equals $900,000 and $250,000 respectively. On that date, the appraised fair values of the investees identifiable net assets approximated the recorded book values, except for a patent.

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