On January 4, 2017, Trycker, Inc. purchased 40% of the 100,000 shares of common stock of Inkblot Co. for $2,400,000 (or $60 per share). There were no differences between book and fair values of Inkblot's assets and liabilities on acquisition date. Despite its ownership percentage, Trycker does not have significant influence over Inkblot and elects the fair value reporting option for its investment. On December 31, 2017, Inkblot's shares are trading at $70 per share. What is the balance in the Investment in Investee account on Recember 31, 2017?

On January 4, 2017, Trycker, Inc. purchased 40% of the 100,000 shares of common stock of Inkblot Co. for $2,400,000 (or $60 per share). There were no differences between book and fair values of Inkblot's assets and liabilities on acquisition date. Despite its ownership percentage, Trycker does not have significant influence over Inkblot and elects the fair value reporting option for its investment. On December 31, 2017, Inkblot's shares are trading at $70 per share. What is the balance in the Investment in Investee account on Recember 31, 2017?

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter7: Corporations: Reorganizations

Section: Chapter Questions

Problem 40P

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