On January 1, 2018, Sara Company purchased 32% of Swati Corporation's common stock; no goodwill...
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Accounting
On January 1, 2018, Sara Company purchased 32% of Swati Corporation's common stock; no goodwill resulted from the purchase. Sara appropriately carries this investment at equity and the balance in Sara's investment account was $466,000 at December 31, 2018. Swati reported net income of $675,000 for the year ended December 31, 2018, and paid cash dividends on common stock totaling $225,000 during 2018. How much did Sara pay for its 32% interest in Swati? [5 points) A
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