On January 1, 2019, Jasper Company acquired 400,000 of Huckleberry Company's 1,000,000 shares at a cost...

On January 1, 2019, Jasper Company acquired 400,000 of Huckleberry Company's 1,000,000 shares at a cost of $1,600,000 and began applying the equity method. At the time, Huckleberry Company's equity included $2,000,000 of capital stock and $2,000,000 of retained earnings. During year Year One, Huckleberry Company reported a $500,000 income, but did not pay any dividends. On January 2, 2020, Jasper acquired an additional 200,000 shared of Huckleberry at a price of $6 per share. At what time should Blue value its investment in Huckleberry on January 2, 2020?

$2,800,000

$3,000,000

$2,600,000

None of the above

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ekkarill92 answered 1 year ago

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