On January 1, 2021, Nana Company paid $100,000 for 7,000 shares of Papa Company common stock. The ownership in Papa Company is 10%. Nana Company does not have significant influence over Papa Company. Papa reported net income of $58,000 for the year ended December 31, 2021. The fair value of the Papa stock on that date was $57 per share. What amount will be reported in the balance sheet of Nana Company for the investment in Papa at December 31, 2021? $324,000. $354,000. $399,000. $339,000.
On January 1, 2021, Nana Company paid $100,000 for 7,000 shares of Papa Company common stock. The ownership in Papa Company is 10%. Nana Company does not have significant influence over Papa Company. Papa reported net income of $58,000 for the year ended December 31, 2021. The fair value of the Papa stock on that date was $57 per share. What amount will be reported in the balance sheet of Nana Company for the investment in Papa at December 31, 2021? $324,000. $354,000. $399,000. $339,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On January 1, 2021, Nana Company paid $100,000 for 7,000 shares of Papa Company common stock. The ownership in Papa Company is 10%. Nana Company does not have significant influence over Papa Company. Papa reported net income of $58,000 for the year ended December 31, 2021. The fair value of the Papa stock on that date was $57 per share. What amount will be reported in the balance sheet of Nana Company for the investment in Papa at December 31, 2021?
$324,000.
$354,000.
$399,000.
$339,000.
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