(Answered) Question - gilman company purchased 40 of the common stock

Accounting

Question - Gilman Company purchased 40% of the common stock of Burke Corporation on January 1, 2017, for $4,000,000. The records of Burke Corporation showed the following on December 31, 2017:

• 2017 net income: $575,000

• Dividends declared and paid to shareholders during 2017: $30,000

• Market price per share: $42

What is the value of the investment in Burke on Gilman Company's December 31, 2017 balance sheet?

$4,000,000

$4,124,000

$3,800,000

$4,218,000

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