M.T. Glass, Inc. purchased the following investments on January 1, 2028: 1. 21,000 shares (representing 42%) of AA Company stock for $546,000 2. 18,000 shares (representing 9%) of ZZ Company stock for $306,000 AA Company and ZZ Company reported the following information for the years 2028 and 2029: 2028: AA Company ZZ Company Net income $140,000 $225,000 Total dividends paid $ 78,000 $ 53,000 Market value at Dec 31 $33 per share $22 per share 2029: AA Company ZZ Company Net income $210,000 $280,000 Total dividends paid $ 90,000 $125,000 Market value at Dec 31 $35 per share $23 per share Calculate the total investments shown in M.T. Glass, Inc.'s December 31, 2028 balance sheet (i.e., the balance in the Investment in AA Company plus the balance in the Investment in ZZ Company).
M.T. Glass, Inc. purchased the following investments on
January 1, 2028:
1. 21,000 shares (representing 42%) of AA Company stock
for $546,000
2. 18,000 shares (representing 9%) of ZZ Company stock
for $306,000
AA Company and ZZ Company reported the following information
for the years 2028 and 2029:
2028:
AA Company ZZ Company
Net income $140,000 $225,000
Total dividends paid $ 78,000 $ 53,000
Market value at Dec 31 $33 per share $22 per share
2029:
AA Company ZZ Company
Net income $210,000 $280,000
Total dividends paid $ 90,000 $125,000
Market value at Dec 31 $35 per share $23 per share
Calculate the total investments shown in M.T. Glass, Inc.'s
December 31, 2028 balance sheet (i.e., the balance in the
Investment in AA Company plus the balance in the Investment
in ZZ Company).
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