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On 9/18/22, Revenge of the Cough Corp. purchases 40,000 shares of common stock from Sleepless Inc., paying $400,000. Sleepless Inc. has 100,000 shares of common
On 9/18/22, Revenge of the Cough Corp. purchases 40,000 shares of common stock from Sleepless Inc., paying $400,000. Sleepless Inc. has 100,000 shares of common stock outstanding. On 12/1/22 Revenge of the Cough receives a dividend of $6,000 from Sleepless Inc. As of 12/31/22, the market value of the shares of Sleepless Inc. have decreased in value to equal $370,000. Sleepless Inc. reports a net loss for the year ended 12/31/22 of $250,000. Based on the information above, what will be the ending value of the Sleepless Inc. investment reported on Revenge of the Cough's balance sheet as of 12/31/22 (after any adjusting entries)? Question 7 1 pts #7 On 9/18/22, Revenge of the Cough Corp. purchases 40,000 shares of common stock from Sleepless Inc., paying $400,000. Sleepless Inc. has 100,000 shares of common stock outstanding. On 12/1/22 Revenge of the Cough receives a dividend of $6,000 from Sleepless Inc. As of 12/31/22, the market value of the shares of Sleepless Inc. have decreased in value to equal $370,000. Sleepless Inc. reports a net loss for the year ended 12/31/22 of $250,000. Based on the information above, what will be the effect of the Sleepless Inc. investment on Revenge of the Cough's net income for the year ended 12/31/22 (after any adjusting entries)? If the effect is an increase in the company's net income, make your answer a positive number. If the effect is a decrease in the company's net income, make your answer a negative number. If there will be no effect on the company's net income, answer with '0
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