Kross Company purchases an equity investment in Penno Company at a purchase price of $2.5 million, representing 40% of the book value of Penno. During the current year, Penno reports net income of $480,000 and pays cash dividends of $160,000. At the end of the year, the fair value of Krosss investment is $2.65 million. What amount of income does Kross report relating to this investment in Penno for the year? $Answer

Analyzing and Interpreting Equity Method Investments Concord Company purchases an investment in Bloomingdale Company at a purchase price of $3 million cash, representing 30% of the book value of Bloomingdale. During the year, Bloomingdale reports ne income of $400,000 and pays cash dividends of $100,000. At the end of the year, the market value of Concord's investment is $3.4 million. a. What amount does Concord report on its balance sheet for its investment in Bloomingdale? \$ b. What amount of income from investments does Concord report? \$ c. The fair value of Bloomingdale increased during the year creating an unrealized gain for Concord. This unrealized gain in the fair value of the Bloomingdale investment (choose one): (1) Is not reflected on either its income statement or balance sheet. O (2) Is reported in its current income. O (3) Is reported on its balance sheet only. O(4) Is reported in its accumulated other comprehensive income