Orlov Corporation purchased 8,500 shares of Matsey Corporation common stock for $40 per share on January 1, 2009 . Matsey reported net income of $120,000 for 2009 and paid dividends of $45,000 during 2009 . As of December 31, 2009, the market value of Matsey Corporation common stock was $40 per share. Assuming the shares owned by Orlov represent 30 percent of the total outstanding stock of
Matsey, Orlov Corporation should report the long-term investment on December 31, 2009, at a carrying value of
a. $362,500.
b. $376,000.
c. $353,500.
d. $340,000.
A
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