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Business, 25.01.2020 02:31 zachthomas024

On january 4, 2017, trycker, inc. acquired 40% of the outstanding common stock of inkblot co. for $2,400,000. this investment gave trycker the ability to exercise significant influence over inkblot. inkblot’s assets on that date were recorded at $8,000,000 with liabilities of $2,000,000. there were no other differences between book and fair values.

during 2012, inkblot reported net income of $500,000 and paid dividends of $300,000. the fair value of inkblot at december 31, 2012 is $7,000,000. trycker elects the fair value option for its investment in inkblot.

at what amount will inkblot be reflected in trycker's december 31, 2012 balance sheet?

(a) $7,000,000.
(b) $2,800,000.
(c) $2,400,000.
(d) $2,280,000.
(e) $2,480,000.

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On january 4, 2017, trycker, inc. acquired 40% of the outstanding common stock of inkblot co. for $2...

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