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15) On January 2, 2019, Mom Co. purchased 10 percent of Son, Inc.'s outstanding common shares for $400,000. Mom is the largest single shareholder in
15) On January 2, 2019, Mom Co. purchased 10 percent of Son, Inc.'s outstanding common shares for $400,000. Mom is the largest single shareholder in Son, and Mom's officers are a majority on Son's board of directors. As a result, Mom is able to exercise significant influence over Son. Son reported net income of $500,000 for 2019, and paid dividends of $150,000. In its December 31, 2019, balance sheet, what amount should Mom report as investment in Son?
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