Evan Company reports net income of $183,000 each year and declares an annual cash dividend of $90,000. The company holds net assets of $1,300,000 on January 1, 2020. On that date, Shalina purchases 40 percent of Evan's outstanding common stock for $689,000, which gives it the ability to significantly influence Evan. At the purchase date, the excess of Shalina’s cost over its proportionate share of Evan’s book value was assigned to goodwill. On December 31, 2022, what is the Investment in Evan Company balance (equity method) in Shalina’s financial records? Multiple Choice $908,600. $835,400. $800,600.
Evan Company reports net income of $183,000 each year and declares an annual cash dividend of $90,000. The company holds net assets of $1,300,000 on January 1, 2020. On that date, Shalina purchases 40 percent of Evan's outstanding common stock for $689,000, which gives it the ability to significantly influence Evan. At the purchase date, the excess of Shalina’s cost over its proportionate share of Evan’s book value was assigned to goodwill. On December 31, 2022, what is the Investment in Evan Company balance (equity method) in Shalina’s financial records? Multiple Choice $908,600. $835,400. $800,600.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter16: Retained Earnings And Earnings Per Share
Section: Chapter Questions
Problem 23E
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Question
Evan Company reports net income of $183,000 each year and declares an annual cash dividend of $90,000. The company holds net assets of $1,300,000 on January 1, 2020. On that date, Shalina purchases 40 percent of Evan's outstanding common stock for $689,000, which gives it the ability to significantly influence Evan. At the purchase date, the excess of Shalina’s cost over its proportionate share of Evan’s book value was assigned to
Multiple Choice
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$908,600.
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$835,400.
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$800,600.
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$872,600.
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