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dams Industries holds 54,000 shares of FedEx common stock, which is not a large enough ownership interest to allow Adams to exercise significant influence over FedEx. On December 31, 2021, and December 31, 2022, the market value of the stock is $99 and $110 per share, respectively. What is the appropriate reporting category for this investment and at what amount will it be reported in the 2022 balance sheet

Respuesta :

Zviko

Answer :

Category - Investments in other companies (Non - Current Assets)

Amount - $5,940,000

Explanation:

This Investment represents an Asset (Financial Asset to be specific). Assets are economic resources that are controlled by the entity as a result of past events, which result in the flow of future economic benefit.

Measurement is at the Fair Value Amount that is 54,000 shares x $110 per share = $5,940,000