write my assignment 11353

On January 1, 2016, Lion Company paid $960,000 for 16,000 shares of Wolf Company’s voting common stock, which was a 10% interest in Wolf. Lion does not have the ability to exercise significant influence over the operating and financial policies of Wolf. Lion received dividends of $1.00 per share from Wolf on October 2, 2016. Wolf reported net income of $370,000 for the year ended December 31, 2016, and the ending market price of its shares was $62.

On July 2, 2017, Lion paid $3,072,000 for 48,000 additional shares of Wolf’s voting common stock, which represents a 30% investment in Wolf. The fair values of all of Wolf’s assets, net of liabilities, were equal to their book values of $10,240,000. As a result of this transaction, Lion has the ability to exercise significant influence over the operating and financial policies of Wolf. Lion received dividends of $1.00 per share from Wolf on April 2, 2017,and $1.15 per share on October 1, 2017. Wolf reported net income of $470,000 for the year ended December 31, 2017, and $188,000 for the 6 months ended December 31, 2017. What is the 12/31/17 carrying value?