Zebest Company acquired a 25% interest in Tyco Company on December 31, 2024 for $1,500,000 and elected the fair value option. During 2025, Tyco reported net income of $400,000 and paid total cash dividends of $100,000. The fair value of the investment at December 31, 2024 was $1,625,000 What value would Zebest report on its 2024 balance sheet Equity Investments-Tyco account?
Zebest Company acquired a 25% interest in Tyco Company on December 31, 2024 for $1,500,000 and elected the fair value option. During 2025, Tyco reported net income of $400,000 and paid total cash dividends of $100,000. The fair value of the investment at December 31, 2024 was $1,625,000 What value would Zebest report on its 2024 balance sheet Equity Investments-Tyco account?
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
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
Problem 1MC
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Zebest Company acquired a 25% interest in Tyco Company on December 31, 2024 for $1,500,000 and elected the fair value option. During 2025, Tyco reported net income of $400,000 and paid total cash dividends of $100,000. The fair value of the investment at December 31, 2024 was $1,625,000 What value would Zebest report on its 2024
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