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Feng Company purchased 10,000 of 250,000 shares of common stock of Minkow Corporation on January 1, 2006, at $40 per share as a long-term investment....

Feng Company purchased 10,000 of 250,000 shares of common stock of Minkow Corporation on January 1, 2006, at $40 per share as a long-term investment. The records of Minkow Corporation showed the following on December 31, 2006:

Net Income: $575,000


Dividends Paid: $30,000


Market Price per Share: $38


What amount should Feng Company report on its December 31, 2006, balance sheet for its investment in Minkow?
a.
$380,000


b.
$400,000


c.

$423,000


d.
$421,800


e.
None of the above is correct.

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Feng Company purchased 10,000 of 250,000 shares of common stock of Minkow Corporation on January 1, 2006, at
$40 per share as a long-term investment. The records of Minkow Corporation showed the...

Sign up to view the full answer

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