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Molodets [167]
1 year ago
13

pharoah company purchased 200 of the 1000 outstanding shares of sheridan company's common stock for $520000 on january 2, 2021

Business
1 answer:
Anni [7]1 year ago
6 0

The equity investment ( sheridan )account on December 31, 2021 is $5,20,000

As per the fair value technique, equity Investments must be stated at the fair value of the funding at the date of reporting. In this situation there is no fair value, therefore fairness Investments ought to be mentioned at buy charge.

A fair fee is an anticipated charge at which an asset is offered or offered when both the client and seller freely agree on a fee. People and corporations may additionally compare modern-day marketplace value, growth ability, and replacement value to determine the fair price of an asset.

An equity investment is a cash that is invested in an organization by means of buying shares of that organization within the stock market. those shares are generally traded on a stock exchange.

Learn more about fair value here brainly.com/question/16788537

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