On January 1, 2020, Keith Company paid $96,000 for 8,000 shares of Jerry Company common stock. The ownership in Jerry Company is 10% and this is the only stock investment held by Keith. Jerry reported net income of $52,000 for the year ended December 31, 2020. Jerry declared and paid dividends of $.50 per share during the year ended December 31, 2020. Finance.yahoo.com reports that the fair value of the Jerry stock on December 31, 2020 was $25 per share. 5. What amount will be reported in the balance sheet of Keith Company for the investment in Jerry at December 31, 2020? a. $96,000 b. $97,200 c. $200,000 d. $201,200 6. What total amount will Keith Company report on its 2020 income statement related to the investment in Jerry Company? a. $5,200 b. $4,000 c. $108,000 d. $109,200 7. On January 1, 2021, Keith Company sells all 8,000 of its shares of Jerry Company common stock for $25 per share. How much gain or loss does Keith Company report on its 2021 income statement related to this sale? a. $0 b. $104,000 c. $102,800 d. $98,800

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Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.