On January 1, 2024, Cat Company purchased the following investments: 1) 20,000 shares (representing 35%) of AA Company stock for $23 per share. 2) 8,000 shares (representing 14%) of ZZ Company stock for $15 per share.. Cat Company recorded the sale of some of its investments during 2025 as follows: 1) On December 31, 2025, Cat Company sold 6,000 shares of the AA Company stock for $30 per share. 2) On September 1, 2025, Cat Company sold 4,000 shares of the ZZ Company stock for $21 per share. During 2024 and 2025, AA Company and ZZ Company reported the following information: AA Company: Net income Total dividends paid Market value at Dec 31 ZZ Company: Net income Total dividends paid Market value at Dec 31 2024 $200,000 $105,000 $27 per share 2024 $260,000 $125,000 $26 per share 2025 $160,000 $ 35,000 $24 per share 2025 $225,000 $100,000 $29 per share Calculate the balance in the Investment in AA Company account reported on Cat Company's December 31, 2024 balance sheet.

On January 1, 2024, Cat Company purchased the following investments: 1) 20,000 shares (representing 35%) of AA Company stock for $23 per share. 2) 8,000 shares (representing 14%) of ZZ Company stock for $15 per share.. Cat Company recorded the sale of some of its investments during 2025 as follows: 1) On December 31, 2025, Cat Company sold 6,000 shares of the AA Company stock for $30 per share. 2) On September 1, 2025, Cat Company sold 4,000 shares of the ZZ Company stock for $21 per share. During 2024 and 2025, AA Company and ZZ Company reported the following information: AA Company: Net income Total dividends paid Market value at Dec 31 ZZ Company: Net income Total dividends paid Market value at Dec 31 2024 $200,000 $105,000 $27 per share 2024 $260,000 $125,000 $26 per share 2025 $160,000 $ 35,000 $24 per share 2025 $225,000 $100,000 $29 per share Calculate the balance in the Investment in AA Company account reported on Cat Company's December 31, 2024 balance sheet.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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