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  1. business
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  3. assume that, on january 1,2016 , sosa enterprises

Assume that, on January 1,2016 , Sosa Enterprises paid $3,000,000 for its investment in 36,000...

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Accounting

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Assume that, on January 1,2016 , Sosa Enterprises paid $3,000,000 for its investment in 36,000 shares of Orioles Co. Further, assume that Orioles has 120,000 total shares of stock issued and estimates an eight-year remaining useful life and straight-line depreciation with no residual value for its depreciable assets. At January 1, 2016, the book value of Orioles' identifiable net assets was $7,000,000, and the fair value of Orioles was $10,000,000. The difference between Orioles' fair value and the book value of its identifiable net assets is attributable to $1,800,000 of land and the remainder to depreciable assets. Goodwill was not part of this transaction. The following information pertains to Orioles during 2016: What amount would Sosa Enterprises report in its year-end 2016 balance sheet for its investment in Orioles Co.? $3,200,000. $3,180,000. $3,135,000. $3,027,000

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