On April 5, 2004, Meyers company buys 5,000 shares of investee company for $12 p

Question

On April 5, 2004, Meyers company buys 5,000 shares of investee company for $12 per share and pays commissions of $1,800. this represents 8% of the shares of investee and the investment is classified as available-for-sale. during 2004, myers receives $1 per share in dividends and investee earns $35,000. On december 31, 2004, the investee stock has a fair value of $15 per share. On February 3, 2005, the investment is sold for $16 per share less commissions of $2,000. Use this information to answer the following question: At what value will the investment appear on Myers December 31, 2004 balance sheet?

Explanation / Answer

Investment with appear at fair value 250000 5000*50 If any doubt plaese comment

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