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On December 27, Year 5, Lee paid $100,000 for 8,000 shares of Papa Co. common...

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Accounting

On December 27, Year 5, Lee paid $100,000 for 8,000 shares of Papa Co. common stock. Lee classified the shares as fair value through net income securities. Lee owns 10% of Guys common stock. Guy reported net income of $52,000 for the year ended December 31, Year 5. The fair value of the Guy stock on December 31, Year 5 was $45 per share.

What amount was reported in Lees balance sheet for the investment in Guy at December 31, Year 5?

  • A.

    $315,600.

  • B.

    $360,000.

  • C.

    $300,000.

  • D.

    $284,400.

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