Business, 21.05.2020 17:58 johnsonkhalee

Assume that, on January 1, 2016, Sosa Enterprises paid $3,000,000 for its investment in 36,000 shares of Orioles Co. Further, assume that Orioles has 120,000 total shares of stock issued and estimates an eight-year remaining useful life and straight-line depreciation with no residual value for its depreciable assets. At January 1, 2016, the book value of Orioles' identifiable net assets was $7,000,000, and the fair value of Orioles was $10,000,000. The difference between Orioles' fair value and the book value of its identifiable net assets is attributable to $1,800,000 of land and the remainder to depreciable assets. Goodwill was not part of this transaction. The following information pertains to Orioles during 2016: Net Income $600,000 Dividends declared and paid $360,000 Market price of common stock on 12/31/2016 $80/share What amount would Sosa Enterprises report in its year-end 2016 balance sheet for its investment in Orioles Co.?

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Assume that, on January 1, 2016, Sosa Enterprises paid $3,000,000 for its investment in 36,000 share...