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Sober Company purchases investment in Lang Company at a purchase price of 1.15 million cash, representing 30% of the outstanding stock and book value of
Sober Company purchases investment in Lang Company at a purchase price of 1.15 million cash, representing 30% of the outstanding stock and book value of Lang. During the year Lang reports net income of $115000 and pays cash dividends of $42500. At the end of the year the fair value of Stober's investment is $1.275 million.
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