On January 1, 2020, Brown Corporation purchased 10,000 shares of the outstanding voting common stock of Grizzly Company for $500,000. Grizzly has a total of 40,000 shares issued and outstanding. For the year ended December 31, 2020, Grizzly reported net income of $225,000 and paid cash dividends of $40,000. What is the carrying value of Brown’s investment in Grizzly at December 31, 2020?

Answer rating: 100% (QA)

SOLUTION Calculation of Share in net income of 10000 shares Grizzy repo... View the full answer