On January 8, 20X8, Figetakis Inc., a large IT consulting firm,
On January 8, 20X8, Figetakis Inc., a large IT consulting firm, bought
35% of the shares of stock of IT-ology, Inc. for $620,000. Figetakis, Inc. has significant influence over IT-ology, Inc. decisions. On December 31 20X8, IT-ology, Inc’s 20X8 Income Statement reported a net income of $1,800,000. The fair value of Figetakis’ investment on December 31st was $700,000.
What year-end journal entry would Figetakis record assuming it takes the fair value option for valuing investments.
Account
