On January 1, 2021, Nova Company paid $200,000 for 5,000 shares of Acme Inc.s common...
50.1K
Verified Solution
Link Copied!
Question
Accounting
On January 1, 2021, Nova Company paid $200,000 for 5,000 shares of Acme Inc.s common stock. The 10% ownership of Acme does not allow Nova to exert significant influence over Acme. Acme reported net income of $50,000 for the year ended December 31, 2021. The fair value of Acme stock on that date was $43 per share.
What amount will be reported for Investment in Acme on Novas balance sheet at December 31, 2021?
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
