Coronado Corp. was a 30% owner of Whispering Company, holding 210,000 shares of Whispering's common stock on December 31, 2024. The investment account had the following entries. 1/1/23 Cost 12/31/23 Share of income 12/31/24 Share of income 2025 Whispering Income (Loss) $280,000 (b) Investment in Whispering $3,060,000 12/6/23 Dividend received 400,000 12/5/24 Dividend received On January 2, 2025, Coronado sold 126,000 shares of Whispering for $3,330,000, thereby losing its significant influence. During the year 2025, Whispering experienced the following results of operations and paid the following dividends to Coronado. 490,000 Carrying amount $ Dividends Paid to Coronado $150,000 $50,000 260,000 At December 31, 2025, the fair value of Whispering shares held by Coronado is $1,500,000. This the first reporting date since the January 2 sale. Compute the carrying amount of the investment in Whispering as of December 31, 2025 (prior to any fair value adjustment).
Coronado Corp. was a 30% owner of Whispering Company, holding 210,000 shares of Whispering's common stock on December 31, 2024. The investment account had the following entries. 1/1/23 Cost 12/31/23 Share of income 12/31/24 Share of income 2025 Whispering Income (Loss) $280,000 (b) Investment in Whispering $3,060,000 12/6/23 Dividend received 400,000 12/5/24 Dividend received On January 2, 2025, Coronado sold 126,000 shares of Whispering for $3,330,000, thereby losing its significant influence. During the year 2025, Whispering experienced the following results of operations and paid the following dividends to Coronado. 490,000 Carrying amount $ Dividends Paid to Coronado $150,000 $50,000 260,000 At December 31, 2025, the fair value of Whispering shares held by Coronado is $1,500,000. This the first reporting date since the January 2 sale. Compute the carrying amount of the investment in Whispering as of December 31, 2025 (prior to any fair value adjustment).
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Coronado Corp. was a 30% owner of Whispering Company, holding 210,000 shares of Whispering's common stock on December 31,
2024. The investment account had the following entries.
1/1/23 Cost
12/31/23 Share of income
12/31/24 Share of income
2025
On January 2, 2025, Coronado sold 126,000 shares of Whispering for $3,330,000, thereby losing its significant influence. During the
year 2025, Whispering experienced the following results of operations and paid the following dividends to Coronado.
Whispering
Income (Loss)
$280,000
(b)
Investment in Whispering
$3,060,000 12/6/23 Dividend received
400,000 12/5/24 Dividend received
490,000
Carrying amount $
Dividends Paid
to Coronado
$150,000
260,000
$50,000
At December 31, 2025, the fair value of Whispering shares held by Coronado is $1,500,000. This is the first reporting date since the
January 2 sale.
Compute the carrying amount of the investment in Whispering as of December 31, 2025 (prior to any fair value adjustment).
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