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Assume that Adams Industries holds 59,000 shares of FedEx Adams to exercise significant influence over FedEx. On Dece 599 and $112 per share resne obr

Assume that Adams Industries holds 59,000 shares of FedEx Adams to exercise significant influence over FedEx. On Dece 599 and $112 per share resne obr

FINANCIAL ACCOUNTING
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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Assume that Adams Industries holds 59,000 shares of FedEx common stock, which is not a large enough ownership interest to allow Adams to exercise significant influence over FedEx. On December 31, 2024, and December 31, 2025, the market value of the stock is $99 and $112 per share, respectively. What is the appropriate reporting category for this investment and at what amount will it be reported in the 2025 balance sheet?
Transcribed Image Text:Assume that Adams Industries holds 59,000 shares of FedEx common stock, which is not a large enough ownership interest to allow Adams to exercise significant influence over FedEx. On December 31, 2024, and December 31, 2025, the market value of the stock is $99 and $112 per share, respectively. What is the appropriate reporting category for this investment and at what amount will it be reported in the 2025 balance sheet?
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