Question 22 1.67 pts Ty Corporation has an equity investment that cost $400 on the date of purchase and has a fair value of $380 at the end of the year. During the year, dividend of $120 was received. On the year-end balance sheet. Ty should report investment at: O 5380 O $400 S520 O $500 > Question 23 1.67 When one company purchases another, the purchasing company gains control of the assets of the acquired company. True O False Question 24 1.67 The amount of change in the fair value of an equity investment is: O reported as Investment Income or Investment Expense. O is taken into account only at the time of sale, O ignored unless permanent drop in value occurs. O included within stockholders' equity section, be included in the net income Question 25 1.67 pts Carren Inc. purchased a patent from Arsen Co. on January 20X3 for $300,000. The company made an arrangement with Arsen to pay $100,000 per year for 3 years, with the first payment being made immediately. Assuming a reasonable rate of 8 percent per year. Compute the amount of liability reported by Carren at the end of 20X4. O SI78,326 OS278,326 $92,593 O S100,000