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Port Company purchased 33,000 of the 110,000 outstanding shares of Sund Company common stock on January 1, 20X2, for $181,000. The purchase price was equal
Port Company purchased 33,000 of the 110,000 outstanding shares of Sund Company common stock on January 1, 20X2, for $181,000. The purchase price was equal to the book value of the shares purchased. Sund reported the following:
Year | Net Income | Dividends | ||||||
20X2 | $ | 43,000 | $ | 28,000 | ||||
20X3 | 33,000 | |||||||
20X4 | 9,000 | |||||||
Required: Compute the amounts Port Company should report as the carrying values of its investment in Sund Company at December 31, 20X2, 20X3, and 20X4.
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