User Account

All Pages

Calculate Pala income from Saga

Assignment Help Accounting Basics
Reference no: EM132609038

Question - The balance of Pala Corporation's investment in Saga Company account at December 31, 2018, was $872,000, consisting of 80% of Saga's $1,000,000 stockholders' equity on that date and $72,000 goodwill. On May 1, 2019 Pala sold a 20% interest in Saga (one-fourth of its holdings) for $260,000. During 2019, Saga had net income of $300,000, and on July 1, 2019, Saga declared dividends of $160,000.

REQUIRED -

A. Determine the gain or loss on sale of the 20% interest?

B. Calculate Pala's income from Saga for 2017?

C. Determine the balance of Pala's investment in Saga account at December 31, 2017?

Reference no: EM132609038

Questions Cloud

Approach organization can take to manage risk : Explain the various methods of approach an organization can take to manage risk.
Estimate the impact of the strategies on the hospital ROE : Estimate the impact of the strategies on the hospital's ROE. By how much would the 2017 ROE change from each of these strategies?
Strong influence on internal team dynamics : According to the Sarin and O'Connor (2009) article, certain team leader styles have a strong influence on internal team dynamics.
Explain US GAAP vs International Financial Report Standards : Explain the similarities and differences between the US GAAP and International Financial Reporting Standards (IFRS) and how they relate
Calculate Pala income from Saga : The balance of Pala Corporation's investment in Saga Company account at December 31, 2018, was $872,000, Calculate Pala income from Saga
Make a financial statement for handmade jewellery business : Assume your are going to start your Handmade Jewellery Business, now you need to make a financial statement and do FINANCIAL STATEMENT ANALYSIS
Discuss in detail the stakeholder theory approach : Discuss in detail the stakeholder theory approach from an organizational perspective.
Discuss the correct accounting treatment : For each situation, fully discuss the correct accounting treatment, including any required disclosures. Provide an explanation for your answers
Explain two disadvantages of discounted cashflow analysis : Explain two (2) disadvantages of discounted cashflow analysis. Compute the before tax cost of debt. Compute the after tax cost of debt.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd