Question
Bearkat Corporation purchased 4,958 shares of Sammy Corporations common stock on July 1, 20X1. This investment gives Bearkat 35% ownership and significant influence over Sammy.
Bearkat Corporation purchased 4,958 shares of Sammy Corporations common stock on July 1, 20X1. This investment gives Bearkat 35% ownership and significant influence over Sammy. On that date, the book value of Sammys net assets equaled the fair value. Bearkat Corporation has a December 31 fiscal year-end. During 20X1, Bearkat made the following journal entries related to its investment in Sammy. Investment in Sammy Co. 241,294 Cash 241,294 Cash 10,800 Investment in Sammy Co. 10,800 Investment in Sammy Co. 12,000 Income from Sammy 12,000 Using this information, answer the following question. Round your final answer to the nearest dollar. What is the balance in Bearkat's Investment in Sammy account at 12/31/X1?
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