Assume that, on January 1, 2021, Matsui Co. paid $1,500,000 for its investment in 60,000 shares of Yankee Inc. Further, assume that Yankee has 200,000 total shares of stock issued. The book value and fair value of Yankee's identifiable net assets were both $400,000 at January 1, 2021. The following information pertains to Yankee during 2021: Net income $ 200,000 Dividends declared and paid $ 60,000 Market price of common stock on 12/31/2021 $ 27 /share What amount would Matsui report in its year-end 2021 balance sheet for its investment in Yankee

$1,542,000‬

Explanation:

Matsui paid for 60,000 out of 200,000 shares. They therefore own;

= 60,000/200,000

= 30% of Yankee shares.

Yankee had Net Income of 200,000.

Matsui will recognize their 30% of that;

= 200,000 * 30%

= $60,000

Yankee however paid dividends of $60,000 so that will reduce Matsui's holding;

= 60,000 * 30%

= $18,000

The balance for the investment at year end is;

= Opening balance + Net Income - Dividends

= 1,500,000 + 60,000 - 18,000

= $1,542,000‬

of the three mortgage options that demarco and tanya have to choose from, the balloon payment mortgage would be their best option, over adjustable payment and fixed payment plans.ultimately, the balloon payment plan would save demarco and tanya overall, in interest, would cost less monthly, and they would only have to make these payments for 8 years, opposing to 30 years for adjustable or fixed payment plans. 

overall, demarco and tanya would save $80,811 if they chose balloon payments over fixed payments, and would save $116,711 if they choose balloon payments over adjustable payments. benefits with choosing fixed payments over adjustable payments is that, in the end, the payments will still be $836.30 a month, while with adjustable payments, the initial monthly payments will be $763.38 to $1082.70 a month, ultimately leading to a more costly purchase. benefits with choosing fixed payments over balloon payments are not present. benefits in choosing adjustable payments over is that it has a lower interest rate, and starts with lower monthly payments initially. benefits in choosing adjustable payments over balloon payments include a lower interest rate, and lower initial monthly payments. benefits in choosing balloon payments over fixed payments include lower interest rates, lower overall price, lower monthly payments, takes less time to pay off, and does not require a downpayment. benefits in choosing balloon payments over adjustable payments include, lower monthly payments (when averaged), takes less time to pay off, and lower overall price.

hence, option c, balloon payments, is the best option for demarco and tanya to make this purchase, for it will save them a minimum of $80811, and a maximum of $116,711.