On Jan. 1, 2023 Apex Company purchases 30,000 shares of the common stock of Cary Industries for $2,000,000. Cary Industries has 100,000 shares of common stock issued and outstanding As a result of this investment Apex is given 3 of the 8 seats on Cary's board of directors. For 2023 Cary reports net income of $350,000. On June 1 and Sept. 1 Cary Industries pays a dividend of $0.25 per share to its shareholders. Required: At what amount should this investment be reported on Apex's balance sheet at Dec. 31, 2023?
On Jan. 1, 2023 Apex Company purchases 30,000 shares of the common stock of Cary Industries for $2,000,000. Cary Industries has 100,000 shares of common stock issued and outstanding As a result of this investment Apex is given 3 of the 8 seats on Cary's board of directors. For 2023 Cary reports net income of $350,000. On June 1 and Sept. 1 Cary Industries pays a dividend of $0.25 per share to its shareholders. Required: At what amount should this investment be reported on Apex's balance sheet at Dec. 31, 2023?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On Jan. 1, 2023 Apex Company purchases 30,000 shares of the common stock of Cary Industries for $2,000,000. Cary Industries has 100,000 shares of common stock issued and outstanding As a result of this investment Apex is given 3 of the 8 seats on Cary's board of directors. For 2023 Cary reports net income of $350,000. On June 1 and Sept. 1 Cary Industries pays a dividend of $0.25 per share to its shareholders.
Required: At what amount should this investment be reported on Apex's
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