On January 1, 2023, Cedar Valley Enterprises paid $1,200,000 for 30,000 shares of Oakwood Technologies' voting common stock, which represents a 20% investment. No allocation to goodwill or any other specific account was made. Cedar Valley acquired significant influence over Oakwood with this investment. Oakwood paid a dividend of $3.00 per share during 2023 and reported a net income of $500,000. What was the balance in the Investment in Oakwood Technologies account in the financial records of Cedar Valley as of December 31, 2023?

On January 1, 2023, Cedar Valley Enterprises paid $1,200,000 for 30,000 shares of Oakwood Technologies' voting common stock, which represents a 20% investment. No allocation to goodwill or any other specific account was made. Cedar Valley acquired significant influence over Oakwood with this investment. Oakwood paid a dividend of $3.00 per share during 2023 and reported a net income of $500,000. What was the balance in the Investment in Oakwood Technologies account in the financial records of Cedar Valley as of December 31, 2023?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter16: Retained Earnings And Earnings Per Share

Section: Chapter Questions

Problem 9P

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