Problem

Other Comprehensive Income Reported by InvesteeBaldwin Corporation purchased 25 percent of...

Other Comprehensive Income Reported by Investee

Baldwin Corporation purchased 25 percent of Gwin Company’s common stock on January 1, 20X8, at underlying book value. In 20X8, Gwin reported a net loss of $20,000 and paid dividends of $10,000, and in 20X9 the company reported net income of $68,000 and paid dividends of  $16,000. Gwin also purchased marketable securities classified as available-for-sale on February 8,

20X9, and reported an increase of $12,000 in their fair value at December 31, 20X9. Baldwin d reported a balance of $67,000 in its investment in Gwin at December 31, 20X9.

Required

Compute the amount paid by Baldwin Corporation to purchase the shares of Gwin Company.

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