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

question 7

Multiple Choice

Photo Finish Corporation bought a 40% interest in Click-It Corporation's $1 par value voting common stock on March 31, 2017. On that date, Click-It paid $20 million for 2 million shares at a $10 market price per share. On December 31, 2017, Click-It paid a $1 million cash dividend declared earlier in 2017, and reported net income for the year ended 2017 of $10 million. On December 31, 2017, 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, 2017 balance sheet?

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

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Definitions:

Puritans

A religious group from England who sought to purify the Church of England and who established colonies in New England in the early 17th century.

Overseas Empire

A group of territories or nations under the rule of a single sovereign state or monarch, usually spread across continents.

Great Migration

The movement of over six million African Americans from the rural Southern United States to urban areas in the North and West, from approximately 1916 to 1970, seeking better economic opportunities and escaping racial segregation.

English Expansion

The period of colonization and territorial acquisition by England from the late 16th to the early 18th centuries, leading to the establishment of the British Empire.