Question
On March 15, 2017, Walker Company purchased 60,000 of the 200,000 (which is 30%) of the outstanding shares of Hurtado Company stock for $11.50 per
On March 15, 2017, Walker Company purchased 60,000 of the 200,000 (which is 30%) of the outstanding shares of Hurtado Company stock for $11.50 per share. On June 30, 2017, Hurtado paid an $80,000 dividend to its shareholders. On December 31, 2017, Hurtado declared net income of $420,000. The fair value of Hurtados stock was $13.75 per share on December 31, 2017. At what amount will Walker report its investment in Hurtado Company stock on its December 31, 2017 balance sheet?
| $736,000 |
| $792,000 |
| $825,000 |
| $1,030,000 |
| None of these answers are correct |
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Introduction To Managerial Accounting
Authors: Jeannie Folk, Ray Garrison, Eric Noree
1st Edition
0072468440, 978-0072468441
