FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Ivanhoe, Inc. acquired 30% of Tamarisk Corporation's voting stock on January 1, 2021 for $ 1020000. During 2021, Tamarisk earned $ 406000 and paid dividends of $ 254000. Ivanhoe's 30% interest in Tamarisk gives Ivanhoe the ability to exercise significant influence over Tamarisk's operating and financial policies. During 2022, Tamarisk earned $ 506000 and paid cash dividends of $ 154000 on April 1 and $ 154000 on October 1. On July 1, 2022, Ivanhoe sold half of its stock in Tamarisk for $ 666000 cash.
The carrying amount of this investment in Ivanhoe's December 31, 2021
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