Question: On January 1 , 2 0 2 4 , AFRM Company paid $ 1 0 0 , 0 0 0 for 8 , 0 0

On January 1,2024, AFRM Company paid $100,000 for 8,000 shares of SQUARE Company common stock. The ownership in Papa Company is 10%. AFRM Company does not have significant influence over SQUARE Company. SQUARE reported net income of $52,000 for the year ended December 31,2024. The fair value of the SQUARE stock on that date was $45 per share. What amount will be reported in the balance sheet of AFRM Company for the investment in SQUARE at December 31,2024?

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