On December 27, Year 5, Lee paid $100,000 for 8,000 shares of Papa Co. common...
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Accounting
On December 27, Year 5, Lee paid $100,000 for 8,000 shares of Papa Co. common stock. Lee classified the shares as fair value through net income securities. Lee owns 10% of Guys common stock. Guy reported net income of $52,000 for the year ended December 31, Year 5. The fair value of the Guy stock on December 31, Year 5 was $45 per share.
What amount was reported in Lees balance sheet for the investment in Guy at December 31, Year 5?
A.
$315,600.
B.
$360,000.
C.
$300,000.
D.
$284,400.
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