Gilman Company purchased 100,000 of the 250,000 shares of common stock of Burke Corporation on January 1, 2016, at $40 per share as a long-term investment. The records of Burke Corporation showed the following on December 31, 2016: At what amount should Gilman Company report the Burke investment on the December 31, 2016 balance sheet?

Question

Gilman Company purchased 100,000 of the 250,000 shares of common stock of Burke Corporation on January 1, 2016, at $40 per share as a long-term investment. The records of Burke Corporation showed the following on December 31, 2016:  At what amount should Gilman Company report the Burke investment on the December 31, 2016 balance sheet?

Quizplus · Accepted Answer

The Answer of Gilman Company purchased 100,000 of the 250,000 shares of common stock of Burke Corporation on January 1, 2016, at $40 per share as a long-term investment. The records of Burke Corporation showed the following on December 31, 2016:  At what amount should Gilman Company report the Burke investment on the December 31, 2016 balance sheet?

Gilman Company Purchased 100,000 of the 250,000 Shares of Common