investment value port company purchased 30 000 of the 100 000 outstanding shares of 733314
Investment Value
Port Company purchased 30,000 of the 100,000 outstanding shares of Sund Company common stock on January 1, 20X2, for $180,000. The purchase price was equal to the book value of the shares purchased. Sund reported the following:
|
Year |
Net Income |
Dividends |
|
20X2 |
$40,000 |
$25,000 |
|
20X3 |
30,000 |
|
|
20X4 |
5,000 |
|
Required
Compute the amounts Port Company should report as the carrying values of its investment in Sund Company at December 31, 20X2, 20X3, and 20X4.