On february 4, 2016, Investor purchased 15% of Investee common stock for $62,000. Investees net...
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On february 4, 2016, Investor purchased 15% of Investee common stock for $62,000. Investees net income for the years ended December 31 2016 and 2017 were $18,000 and $56,000 respectively. Investee declared no dividends during 2016; however, during 2017, the company declared a $70,000 dividend. On December 31, 2016, the fair value of investees stock that investor owned had increased to $70,000; in 2017, it increased again to $75,000. What is the carrying value of the investment on investors December 31, 2016, balance sheet?
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