Assume that, on 1/1/08, 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 8 year remaining useful life and straight-line depreciation with no residual value for its depreciable assets. At 1/1/08, 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 goodwill and the remainder to depreciable assets.
The following information pertains to Orioles during 2008:
What amount would Sosa Enterprises report in its year-end 2008 balance sheet for its investment in Orioles Co.?

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The Answer of Assume that, on 1/1/08, 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 8 year remaining useful life and straight-line depreciation with no residual value for its depreciable assets. At 1/1/08, 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 goodwill and the remainder to depreciable assets.
The following information pertains to Orioles during 2008:
What amount would Sosa Enterprises report in its year-end 2008 balance sheet for its investment in Orioles Co.?

Assume That, on 1/1/08, Sosa Enterprises Paid $3,000,000 for Its