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On January 2, Year 1, Barber Company purchased 7,500 shares of Convell Company for $86,000. Convell Company has a total of 37,500 shares of
On January 2, Year 1, Barber Company purchased 7,500 shares of Convell Company for $86,000. Convell Company has a total of 37,500 shares of common stock outstanding and it is presumed the Barber Company will have a significant influence over Convell. During each of the next two years, Convell declared and paid cash dividends of $0.85 per share, and its net income was $97,000 and $92,000 for Year 1 and Year 2, respectively. What is the book value of Barber's investment in Convell at the end of Year 2? Multiple Choice $111,050. O $73,250. $123,800. $86,000. $122,800.
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