Question 68\ 3 pts\ On July

1,20\\\\times 1

, Sanchez Corporation acquired 3,000 shares (

20%

ownership) of Beal Corporation common stock at

$40

per share plus brokerage fees of

$600

. The investment of

$120,000

was

$6,000

greater than

20%

of the equity of Beal because inventory was understated by

$30,000

. Beal reported net income of

$270,000

for the year and paid dividends of

$2

per share at the end of each quarter. The market value of the Beal shares is

$42

per share at December

31,20\\\\times 1

.\ Under the fair value method, what would the company report in the

20\\\\times 1

income for this investment?\ Edit View Insert Format Tools Table\

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On July 1, 20x1, Sanchez Corporation acquired 3,000 shares ( 20% ownership) of Beal Corporation common stock at $40 per share plus brokerage fees of $600. The investment of $120,000 was $6,000 greater than 20% of the equity of Beal because inventory was understated by $30,000. Beal reported net income of $270,000 for the year and paid dividends of $2 per share at the end of each quarter. The market value of the Beal shares is $42 per share at December 31,201. Under the fair value method, what would the company report in the 201 income for this investment