Question
URGENT I WILL GIVE THUMBS UP On January 1, 2020, Company A bought 21% of the 100,000 shares outstanding of Company B for at $5
URGENT I WILL GIVE THUMBS UP
On January 1, 2020, Company A bought 21% of the 100,000 shares outstanding of Company B for at $5 per share. Company A owned no shares of Company B prior to the purchase on January 1, 2020. Company B realized net income of $500,000 for 2020. The stock of Company B pays a dividend of $0.50. Ignoring income tax effects, what should Company A report on its balance sheet regarding its investment in Company B on December 31, 2020? Round to the nearest whole number in your answer. Answer using only the number (ie., 1000000 instead of $1000000).
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