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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....

This question was answered on Jan 12, 2013. View the Answer
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...

This question was asked on Jan 12, 2013 and answered on Jan 12, 2013.

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