On January 1, 2022, Nichols Enterprises paid $100,000 for 6,200 shares of Elliott Electronics common stock. The ownership in Elliott Electronics is 10%. Nichols Enterprises does not have significant influence over Elliott Electronics. Elliott reported net income of $61,000 for the year ended December 31, 2022. The fair value of the Elliott stock December 31,2022 was $55 per share. What amount will be reported in the balance sheet of Nichols Enterprises for the investment in Elliott at December 31, 2022? Multiple Choice $341,000. $296,000. $281,000. $266,000.
On January 1, 2022, Nichols Enterprises paid $100,000 for 6,200 shares of Elliott Electronics common stock. The ownership in Elliott Electronics is 10%. Nichols Enterprises does not have significant influence over Elliott Electronics. Elliott reported net income of $61,000 for the year ended December 31, 2022. The fair value of the Elliott stock December 31,2022 was $55 per share. What amount will be reported in the balance sheet of Nichols Enterprises for the investment in Elliott at December 31, 2022? Multiple Choice $341,000. $296,000. $281,000. $266,000.
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter15: Investments And Fair Value Accounting
Section: Chapter Questions
Problem 28E
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On January 1, 2022, Nichols Enterprises paid $100,000 for 6,200 shares of Elliott Electronics common stock. The ownership in Elliott Electronics is 10%. Nichols Enterprises does not have significant influence over Elliott Electronics. Elliott reported net income of $61,000 for the year ended December 31, 2022. The fair value of the Elliott stock December 31,2022 was $55 per share. What amount will be reported in the balance sheet of Nichols Enterprises for the investment in Elliott at December 31, 2022?
Multiple Choice
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$341,000.
-
$296,000.
-
$281,000.
-
$266,000.
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