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8 minutes Maple Tree Company invested in stock that represents a 10% interest in the investee company with insignificant influence. Maple Tree intends to sell
8 minutes Maple Tree Company invested in stock that represents a 10% interest in the investee company with insignificant influence. Maple Tree intends to sell the investment within 6 months. This investment was purchased on 12/1/20 at a cost of $65,000. A dividend was received on this investment on 12/15/20 for the amount of $4,000. At 12/31/20 the investment fair value is equal to $68,000. The 2020 balance sheet for Maple Tree would report the following net amounts: Balance Sheet: Current Asset $65,000, Accumulated Other Comprehensive Income $-0-: Income Statement: Other Income (above net income) $3,000, Other Comprehensive Income $-0. Balance Sheet: Current Asset $68,000, Accumulated Other Comprehensive Income $-0-: Income Statement: Other Income (above net income) $7,000, Other Comprehensive Income $-0-. Balance Sheet: Noncurrent Asset $68,000, Accumulated Other Comprehensive Income $3,000; Income Statement: Other Income (above net income) $4,000, Other Comprehensive Income $3,000. Balance Sheet: Noncurrent Asset $65,000, Accumulated Other Comprehensive Income $4,000; Income Statement: Other Income (above net income) $3,000, Other Comprehensive Income $4,000
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