Question
3 January 1 2017 A Company purchased 8000 shares of stock ofB Company, and did not obtain significant influence. The investment is intended as a
3 January 1 2017 A Company purchased 8000 shares of stock ofB Company, and did not obtain significant influence. The investment is intended as a long term investment. Stock was purchased for $18 per share, and represents a !0% ownership stake. B Company made $240,000 of net income in 2017 and paid dividends toA Company of $9,000 on December 15 2016. On December 31 2016 B Company stock was trading on the open market for $11 per share at the end of the year. What is the unrealized gain or loss on the investment that should be reported at theyear end by A company
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