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Port Company purchased 40,800 of the 102,000 outstanding shares of Sund Company common stock on January 1, 20X2, for $190,000. The purchase price was equal
Port Company purchased 40,800 of the 102,000 outstanding shares of Sund Company common stock on January 1, 20X2, for $190,000. The purchase price was equal to the book value of the shares purchased. Sund reported the following:
Year Net Income Dividends
20X2 $ 53,000 $ 38,000
20X3 $ 43,000
20X4 $ 11,000
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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