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On January 1,2020 H.E. Pennypacker Corp. purchased 20,000 shares of Putumayo for ...

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Accounting

On January 1,2020 H.E. Pennypacker Corp. purchased 20,000 shares of Putumayo for
$20 per share. Pennypacker owns 40% of Putumayo's common stock and has 'significant
influence' over Putumayo. For the year ended December 31,2020 Putumayo declares
and pays total dividends (to all of its investors) of $80,000 and reports net income of
$240,000. As of December 31,2020 the market price of Putumayo shares has risen to
be $25 per share.
What will be the value of Pennypacker's investment in Putumayo on its balance sheet as
of December 31,2020?
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