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

question 16

Multiple Choice

Photo Finish Corporation bought a 40% interest in Click-It Corporation's $1 par value voting common stock on March 31, 2015. On that date, Click-It paid $20 million for 2 million shares at a $10 market price per share. On December 31, 2015, Click It paid a $1 million cash dividend declared earlier in 2015 and reported net income for the year ended 2015 of $10 million. On December 31, 2015, 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, 2015 balance sheet?

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

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