On January 1, 2024, Company A paid $100,000 for 8,000 shares of Company B's common stock. For
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On January 1, 2024, Company A paid $100,000 for 8,000 shares of Company B's common stock. For the year ended 12/31/24, Company B reported net income of $52,000, paid a cash dividend of $20,000 (in aggregate, to all shareholders), and the fair value of the stock on 12/31/24 was $15 per share.
If Company B has 20,000 shares outstanding, what amount will be reported on the balance sheet of Company A for this investment at December 31, 2024?
Related Book For
Accounting Principles
ISBN: 9781119707110
14th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Jill E. Mitchell
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