Question
On January 1, 2021, Nova Company paid $200,000 for 5,000 shares of Acme Inc.s common stock. The 10% ownership of Acme does not allow Nova
On January 1, 2021, Nova Company paid $200,000 for 5,000 shares of Acme Inc.s common stock. The 10% ownership of Acme does not allow Nova to exert significant influence over Acme. Acme reported net income of $50,000 for the year ended December 31, 2021. The fair value of Acme stock on that date was $43 per share.
What amount will be reported for Investment in Acme on Novas balance sheet at December 31, 2021?
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Financial Accounting
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
2nd Edition
047116920X, 978-0471169208
