On January 4, 2017, Trycker, Inc. purchased 40% of the 100,000 shares of common stock of Inkblot Co. for $2,400,000 (or $60 per share). There were no differences between book and fair values of Inkblot's assets and liabilities on acquisition date. Despite its ownership percentage, Trycker does not have significant influence over Inkblot and elects the fair value reporting option for its investment. On December 31, 2017, Inkblot's shares are trading at $70 per share. What is the balance in the Investment in Investee account on Recember 31, 2017?

On January 4, 2017, Trycker, Inc. purchased 40% of the 100,000 shares of common stock of Inkblot Co. for $2,400,000 (or $60 per share). There were no differences between book and fair values of Inkblot's assets and liabilities on acquisition date. Despite its ownership percentage, Trycker does not have significant influence over Inkblot and elects the fair value reporting option for its investment. On December 31, 2017, Inkblot's shares are trading at $70 per share. What is the balance in the Investment in Investee account on Recember 31, 2017?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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