On January 1, 2013, Nana Company paid $100,000 for 8,000 shares of Papa Company common stock. These securities were classified as trading securities. The ownership in Papa Company is 10%. Papa reported net income of $52,000 for the year ended December 31, 2013. The fair value of the Papa stock on that date was $45 per share. What amount will be reported in the balance sheet of Nana Company for the investment in Papa at December 31, 2013?
A) $284,400.
B) $300,000.
C) $315,600.
D) $360,000.
Correct Answer:
Verified
Q44: Anthers Inc. bought the following portfolio of
Q44: In the statement of cash flows, inflows
Q45: All investment securities are initially recorded at:
A)Cost.
B)Present
Q46: Nichols Enterprises has an investment in 25,000
Q48: What is the effect on a company's
Q49: Trading securities, by definition, are properly classified
Q51: When an investor classifies an investment in
Q54: For trading securities, unrealized holding gains and
Q58: When an equity security is appropriately carried
Q59: All investments in debt and equity securities
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents