On January 1, 2016, as a Long-Term Investment in Available-For-Sale

question 32

Essay

On January 1, 2016, as a long-term investment in available-for-sale securities, John Company purchased 1,000 of the 10,000 outstanding voting common shares of Wayne Corporation at $9 per share. Wayne reported 2016 net income of $30,000 and declared and paid cash dividends of $20,000. The market price of the Wayne stock at the end of 2016 was $10 per share. Calculate the carrying value of John's investment at the end of 2016.