Phillips Corporation Purchased 1,000,000 Shares of Martin Corporation's Common Stock,which

question 49

Multiple Choice

Phillips Corporation purchased 1,000,000 shares of Martin Corporation's common stock,which constitutes 10% of Martin's voting stock on June 30,2019 for $42 per share.Phillips' intent is to keep these shares beyond the current year.On December 20,2019,Martin paid a $4,000,000 cash dividend.On December 31,Martin's stock was trading at $45 per share and Martin reported 2019 net income of $52 million.
- What investment value will be reflected on Phillips' balance sheet at December 31,2019?

• A)$42,000,000.
• B)$45,000,000.
• C)$46,800,000.
• D)$47,200,000.