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Corporation purchased 4,000 of the 400,000 outstanding shares of I-Water Company. Boom Beverage accounts for...

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Accounting

Corporation purchased 4,000 of the 400,000 outstanding shares of I-Water Company. Boom Beverage accounts for the investment using the FAIR VALUE method.

  • On April 4, 2018, Corporation purchased 4,000 shares of Water Company common stock for $60 per share.
  • During 2018, Water Companys net income was $1,200,000, and the company declared and paid a $1.00 per share cash dividend.
  • On December 31, 2018, Water Company stock was trading at $57 per share.
  • During 2019, Water Companys net income was $1,400,000, and the company declared and paid a $1.20 per share cash dividend.
  • On December 31, 2019, Water Company stock was trading at $62 per share.
  • On October 19, 2020, Corporation sold its entire investment in Water Company for $65 per share.

Balance Sheet - Investments:

As of December 31, 2018: __________________

As of December 31, 2019: __________________

As of December 31, 2020: __________________

Income Statements - Investment Income/(Loss),net:

Year Ended December 31, 2018: __________________

Year Ended December 31, 2019: __________________

Year Ended December 31, 2020: __________________

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