Webster Corporation acquired 25% of the outstanding common stock of Digest Inc. on January 1, 2022. The purchase price was $2,300,000 for 60,000 shares. Digest declared and paid a $1.10 per share cash dividend on June 30, 2022. The fair market value of the Digest stock at the end of 2022 is $42 per share. Webster can not exert significant influence over Digest and accounts for the investment as an equity investment. This is Webster's only equity investment. At December 31, 2022 the investment asset will be reported on Webster's balance sheet at what amount? $2,300,000 $2,484,000

Webster Corporation acquired 25% of the outstanding common stock of Digest Inc. on January 1, 2022. The purchase price was $2,300,000 for 60,000 shares. Digest declared and paid a $1.10 per share cash dividend on June 30, 2022. The fair market value of the Digest stock at the end of 2022 is $42 per share. Webster can not exert significant influence over Digest and accounts for the investment as an equity investment. This is Webster's only equity investment. At December 31, 2022 the investment asset will be reported on Webster's balance sheet at what amount? $2,300,000 $2,484,000

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter7: Corporations: Reorganizations

Section: Chapter Questions

Problem 44P

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