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On January 1, 2027, Kasson Company acquired 40% of IJK Company's common stock for $183,000. Kasson Company's December 31, 2027 balance sheet repor an Investment in IJK Company with a $216,780 balance. At December 31, 2028, Kasson Company sold one-fourth c its investment in IJK Company. Kasson Company reportec a gain on the sale of the investment of $7,745. IJK Company reported net income and paid dividends as follows: 2028 $136,000 $ 16,000 2027 Net income Total dividends paid $12,000 Calculate the selling price of the investment sold on December 31, 2028.

On January 1, 2027, Kasson Company acquired 40% of IJK Company's common stock for $183,000. Kasson Company's December 31, 2027 balance sheet repor an Investment in IJK Company with a $216,780 balance. At December 31, 2028, Kasson Company sold one-fourth c its investment in IJK Company. Kasson Company reportec a gain on the sale of the investment of $7,745. IJK Company reported net income and paid dividends as follows: 2028 $136,000 $ 16,000 2027 Net income Total dividends paid $12,000 Calculate the selling price of the investment sold on December 31, 2028.

Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
ChapterA2: Investments
Section: Chapter Questions
Problem 25E
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On January 1, 2027, Kasson Company acquired 40% of IJK Company's common stock for $183,000. Kasson Company's December 31, 2027 balance sheet reported an Investment in IJK Company with a $216,780 balance. At December 31, 2028, Kasson Company sold one-fourth of its investment in IJK Company. Kasson Company reported a gain on the sale of the investment of $7,745. IJK Company reported net income and paid dividends as follows: 2028 $136,000 $ 16,000 2027 Net income Total dividends paid $12,000 Calculate the selling price of the investment sold on December 31, 2028.
Transcribed Image Text:On January 1, 2027, Kasson Company acquired 40% of IJK Company's common stock for $183,000. Kasson Company's December 31, 2027 balance sheet reported an Investment in IJK Company with a $216,780 balance. At December 31, 2028, Kasson Company sold one-fourth of its investment in IJK Company. Kasson Company reported a gain on the sale of the investment of $7,745. IJK Company reported net income and paid dividends as follows: 2028 $136,000 $ 16,000 2027 Net income Total dividends paid $12,000 Calculate the selling price of the investment sold on December 31, 2028.
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