On January 3, 2013, Matteson Corporation acquired 40 percent of the outstanding common stock of O'Toole Company

Question:

On January 3, 2013, Matteson acquired 40 percent of the outstanding of O'Toole Company for $1,160,000. This acquisition gave Matteson the ability to exercise significant influence over the investee. The book value of the acquired shares was $820,000. Any excess cost over the underlying book value was assigned to a copyright that was undervalued on balance sheet. This copyright has a remaining useful life of 10 years. For the year ended December 31, 2013, O'Toole reported net income of $260,000 and paid cash dividends of $50,000. At December 31, 2013, what should Matteson report as its investment in O'Toole under the equity method?
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Corporation
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