Photo Finish Corporation Bought a 40% Interest in Click-It Corporation's

question 111

Multiple Choice

Photo Finish Corporation bought a 40% interest in Click-It Corporation's $1 par value voting common stock on March 31,2019.On that date,Photo Finish paid $20 million for the 2 million shares at a $10 market price per share.On December 31,2019,Click-It paid a $1 million cash dividend declared earlier in 2019,and reported net income for the year ended 2019 of $10 million.On December 31,2019,Click-It's stock was trading at $11.50 per share. At what amount will the Click-It investment be reported on Photo Finish's December 31,2019 balance sheet?

• A)$20,000,000.
• B)$23,000,000.
• C)$23,600,000.
• D)$24,000,000.

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Definitions:

Current Account

The section of a country's balance of payments that records the value of exports and imports of goods and services, net earnings on overseas investments, and net transfer payments.

Money Inflow

The total amount of money entering an economy, business, or individual's account from various sources.

Trade Deficit

A situation that occurs when a country's imports of goods and services exceed its exports.

Inflow Of Payments

Money or resources coming into a business, organization, or economy.