Question
Assume that, on January 1, 2021, Matsui Co. paid $2,529,600 for its investment in 105,400 shares of Yankee Inc. Further, assume that Yankee has 310,000
Assume that, on January 1, 2021, Matsui Co. paid $2,529,600 for its investment in 105,400 shares of Yankee Inc. Further, assume that Yankee has 310,000 total shares of stock issued. The book value and fair value of Yankee's identifiable net assets were both $620,000 at January 1, 2021. The following information pertains to Yankee during 2021:
| Net income | $ | 310,000 | ||
| Dividends declared and paid | $ | 93,000 | ||
| Market price of common stock on 12/31/2021 | $ | 26 | /share | |
What amount would Matsui report in its year-end 2021 balance sheet for its investment in Yankee?
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Accountants Truth Knowledge And Ethics In The Financial World
Authors: Matthew Gill
1st Edition
0199547149, 9780199547142
