31· 3.03 points Assume tat on January 1, 2016, Matsui Co. paid $3.571,200 for it

Question

31· 3.03 points Assume tat on January 1, 2016, Matsui Co. paid $3.571,200 for its investment in 115,200 shares of Yankee Inc. Further, assume that Yankee has 320,000 total shares of stock Issued. The book value and fair value of Yankee's Identifiable net assets were both $640,000 at January 1, 2016. The following Information pertains to Yankee during 2016: Net Income Dividends deciared and paid Market price of common stock on 12/31/2016 $320,000 $96,000 $33/share What amount would Matsul report in its year-end 2016 balance sheet for its investment in Yankee? O $3.987200. O None of these answer choices is correct O $3,651,840 O $3.667.200. MacBook Air esc a F3 FS 4

Explanation / Answer

Solution: 3,651,840
Working:
3,571,200 + (36% * 320,000) - (36%*96,000)
3,651,840

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