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Business, 20.01.2020 19:31 chrisssrutter
Roger currently runs a restaurant on a busy street filled with many other restaurants. the local health inspector, however, has plans to shut down many of these restaurants. what impact will the closure of restaurants have?
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On january 2, well co. purchased 10% of rea, inc.’s outstanding common shares for $400,000, which equaled the carrying amount and the fair value of the interest purchased in rea’s net assets. well did not elect the fair value option. because well is the largest single shareholder in rea, and well’s officers are a majority on rea’s board of directors, well exercises significant influence over rea. rea reported net income of $500,000 for the year and paid dividends of $150,000. in its december 31 balance sheet, what amount should well report as investment in rea?
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