Corporation purchased 4,000 of the 400,000 outstanding shares of I-Water Company. Boom Beverage accounts for...
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Accounting
Corporation purchased 4,000 of the 400,000 outstanding shares of I-Water Company. Boom Beverage accounts for the investment using the FAIRVALUE method.
On April 4, 2018, Corporation purchased 4,000 shares of Water Company common stock for $60 per share.
During 2018, Water Companys net income was $1,200,000, and the company declared and paid a $1.00 per share cash dividend.
On December 31, 2018, Water Company stock was trading at $57 per share.
During 2019, Water Companys net income was $1,400,000, and the company declared and paid a $1.20 per share cash dividend.
On December 31, 2019, Water Company stock was trading at $62 per share.
On October 19, 2020, Corporation sold its entire investment in Water Company for $65 per share.
Balance Sheet - Investments:
As of December 31, 2018: __________________
As of December 31, 2019: __________________
As of December 31, 2020: __________________
Income Statements - Investment Income/(Loss),net:
Year Ended December 31, 2018: __________________
Year Ended December 31, 2019: __________________
Year Ended December 31, 2020: __________________
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