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Q8 Crush Enterprises purchased 200,000 of the 400,000 outstanding shares of Carly Casuolties for $4,600,000 on 1/1/2023. On the date of the investment, Carly had
Q8 Crush Enterprises purchased 200,000 of the 400,000 outstanding shares of Carly Casuolties for $4,600,000 on 1/1/2023. On the date of the investment, Carly had net assets with a book value of $9,500,000 and fair value of $10,000,000. This difference is the result of equipment (remaining 10 - year life) with a higher fair value than book value. Crush hes significant influence over Carly and will account for this investment using the equity method. During the year, Carly deciared dividends of $125,000 and reported Net Income of \$1,000.000. What is the bolance in the Investment in Carly acoount at year end? A. $5.075.000 B. $5.037,500 C. $5,012,500 D. $5,062,500
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