Find the carrying value of the investment in bonobo stock

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Question - On March 28, 2020, Kermit Inc. purchased 42,000 shares of Bonobo Inc. for $5 per share. Bonobo has 100,000 shares outstanding. On December 1, Kermit received a total of $3,000 of cash dividends. On December 31, Bonobo reported net income of $50,000. At this date, the market price of Bonobo stock is selling for $10 per share. On February 1, 2021, Kermit sold 2,000 shares of Bonobo stock for $10 each. On December 1, Kermit received a total of $1,000 of cash dividends from Bonobo. On December 31, Bonobo reported a net loss of $20,000 and the market price is selling for $6 per share on this date.

Instructions - Find the carrying value of the investment in Bonobo stock account at December 31, 2021.

Reference no: EM132561722

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