Question
Please help!! Meyer Jewelers acquired a percentage of the outstanding voting shares of Angel & Associates by acquiring 18,000,000 of the outstanding 60,000,000 shares at
Please help!!
Meyer Jewelers acquired a percentage of the outstanding voting shares of Angel & Associates by acquiring 18,000,000 of the outstanding 60,000,000 shares at a cost of $2 per share. On the purchase date, Angel's book value of net assets equaled its fair value. During the year, Angel reported a $600,000 net loss and their tax rate was 40%. Angel had on record that it would pay a cash dividend of $3.00 per share. Assuming this investment was purchased on 1/1, what is the amount of the investment in Angel & Associates on 12/31?
Group of answer choices
36,000,000
-18,180,000
35,820,000
30,000,000
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