Assume that, on January 1, 2021, Sacramento Corporation paid $1,622,400 for its investment in 62,400 shares of Angel Company. Further, assume that Angel has 260,000 total shares of stock issued. The book value and fair value of Angel's identifiable net assets were both $520,000 at January 1, 2021. The following information pertains to Angel during 2021: Net income $260,000 Dividends declared and paid $ 78,000 Market price of common stock on 12/31/2021 $ 28/share What amount would Sacramento report in its year-end 2021 balance sheet for its investment in Angel? Multiple Choice $1,666,080. $1,960,400. $1,804,400. None of these answer choices are correct.
Assume that, on January 1, 2021, Sacramento Corporation paid $1,622,400 for its investment in 62,400 shares of Angel Company. Further, assume that Angel has 260,000 total shares of stock issued. The book value and fair value of Angel's identifiable net assets were both $520,000 at January 1, 2021. The following information pertains to Angel during 2021: Net income $260,000 Dividends declared and paid $ 78,000 Market price of common stock on 12/31/2021 $ 28/share What amount would Sacramento report in its year-end 2021 balance sheet for its investment in Angel? Multiple Choice $1,666,080. $1,960,400. $1,804,400. None of these answer choices are correct.
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
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
Problem 14RE
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![Assume that, on January 1, 2021, Sacramento Corporation paid $1,622,400 for its investment in 62,400 shares of Angel Company. Further, assume that
Angel has 260,000 total shares of stock issued. The book value and fair value of Angel's identifiable net assets were both $520,000 at January 1, 2021.
The following information pertains to Angel during 2021:
Net income
$260,000
Dividends declared and paid
$ 78,000
$
Market price of common stock on 12/31/2021
28/share
What amount would Sacramento report in its year-end 2021 balance sheet for its investment in Angel?
Multiple Choice
$1,666,080.
$1,960,400.
$1,804,400.
None of these answer choices are correct.
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Transcribed Image Text:Assume that, on January 1, 2021, Sacramento Corporation paid $1,622,400 for its investment in 62,400 shares of Angel Company. Further, assume that
Angel has 260,000 total shares of stock issued. The book value and fair value of Angel's identifiable net assets were both $520,000 at January 1, 2021.
The following information pertains to Angel during 2021:
Net income
$260,000
Dividends declared and paid
$ 78,000
$
Market price of common stock on 12/31/2021
28/share
What amount would Sacramento report in its year-end 2021 balance sheet for its investment in Angel?
Multiple Choice
$1,666,080.
$1,960,400.
$1,804,400.
None of these answer choices are correct.
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7 of 16
Next >
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