On January 1, Year 1, Grade Company paid $300,000 for 20,000 shares of Medium Company's common stock,

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On January 1, Year 1, Grade Company paid $300,000 for 20,000 shares of Medium Company's common stock, which represents a 15% investment in Medium. Grade does not have the ability to exercise significant influence over Medium. Medium declared and paid a dividend of $1 a share to its stockholders during Year 1. Medium reported net income of $260,000 for the year ended December 31, Year 1, and Grade's investment in Medium had a fair value of $300,000 at December 31, Year 1. The balance in Grade's balance sheet account "Investment in Medium Company" at December 31, Year 1, should be $280,000. $300,000. $319,000. $339,000

Posted Date: May 18, 2024 01:03 PM

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On January 1, Year 1, Grade Company paid $300,000 for 20,000 shares of Medium Company's common stock,

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