Gregory Inc. acquired 24% of the outstanding common stock of Handerson Inc. on December 31, 2012. The purchase price was $1,385,100 for 51,300 shares. Handerson Inc. declared and paid an $0.76 per share cash dividend on June 30 and on December 31, 2013. Handerson reported net income of $822,200 for 2013. The fair value of Handerson's stock was $29 per share at December 31, 2013.
(c) At what amount is the investment in securities reported on the balance sheet under each of these methods at December 31, 2013? What is the total net income reported in 2013 under each of these methods?
Fair Value Method Equity Method
- Investment amount
- Dividend revenue
- Revenue from investment