On December 15, 2021, Blue Company paid $100,000 for 8,0000 shares of Marble Company common stock. The ownership in Marble Company is 10%. Marble reported net income of $64,000 for the year ended December 31, 2021. The fair value of the Marble stock on that date was $54 per share. What amount will be reported in the balance sheet of Blue Company for the investment in Marble at December 31, 2021?

On December 15, 2021, Blue Company paid $100,000 for 8,0000 shares of Marble Company common stock. The ownership in Marble Company is 10%. Marble reported net income of $64,000 for the year ended December 31, 2021. The fair value of the Marble stock on that date was $54 per share. What amount will be reported in the balance sheet of Blue Company for the investment in Marble at December 31, 2021?

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA2: Investments

Section: Chapter Questions

Problem 25E

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