Reference no: EM133179599

Questions -

A) During 2021, Broadview Company purchased 74,500 shares of Yellowstone Corporation common stock for $1,490,000 as an equity investment. The fair value of these shares was $1,420,000 at December 31, 2021. Broadview sold all of the Yellowstone stock for $21 per share on December 3, 2021, incurring $49,000 in brokerage commissions. Broadview Company should report a realized gain on the sale of stock in 2021 of?

B) On January 2, 2018 Brockton Company purchased 30% of the outstanding common stock of Roosevelt, Inc. and subsequently used the equity method to account for the investment. During 2018 Roosevelt, Inc. reported net income of $1,500,000 and distributed dividends of $900,000. The ending balance in the Investment in Brockton Company account at December 31, 2018 was $475,000 after applying the equity method during 2018. What was the purchase price Brockton Company paid for its investment in Roosevelt, Inc?

C) Boulder Corporation has the following investment which was held throughout 2018-2019:

Fair Value

Cost 12/31/18 12/31/19

Equity investment $1,350,000 $1,500,000 $1,480,000

What amount of gain or loss would Boulder Corporation report in its income statement for the year ended December 31, 2019 related to its investment?