Question
Company A bought 49,000 shares of Company B for a price of $5 per share in January 2020. Company A previously owned no stock of
Company A bought 49,000 shares of Company B for a price of $5 per share in January 2020. Company A previously owned no stock of Company B and after the acquisition, it owned 49% of the shares. Using the below data for Company B, and ignoring income tax effects, what should Company A report on its balance sheet regarding its investment in Company B on December 31, 2021? Round to the nearest whole number in your answer. Answer using only the number (ie., 1000000 instead of $1000000). 2020 2021
Net income $1,000,000 -$140,000
Dividend per share $1.30 $1.20
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