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On January 1 of the current year, Beta Company paid $200,000 for 20,000 shares of Gamma Company common stock. Beta owns 10% of Gamma Company.
On January 1 of the current year, Beta Company paid $200,000 for 20,000 shares of Gamma Company common stock. Beta owns 10% of Gamma Company. Gamma reported net income of $65,000 for December 31 of the current year. The fair value of the Gamma stock on that date was $22. What amount will be reported in Beta's balance sheet for the investment in Gamma at December 31 ? A. $440,000 B. $265,000 C. $505,000 D. $375,000
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