User Account

All Pages

Calculate the amount of realized gain reported in mt glass

Assignment Help Financial Accounting
Reference no: EM132582207

On January 1, 2021 M.T. Glass purchased the following investments:

1. 7,500 shares (representing 15%) of ZZ Company stock for $98,000

2. 25,000 shares (representing 40%) of AA Company stock for $440,000

M.T. Glass recorded the sale of some of its investments in 2022 as follows:

1. September 1 sold 5,000 shares of the ZZ Company stock for $76,000

2. December 31 sold 3,000 shares of the AA Company stock for $120,000

AA Company and ZZ Company reported the following information for the years 2021 and 2022:

                                                 AA Company                  ZZ Company

Net income in 2021                        $260,000                              $200,000
Total dividends paid in 2021                $24,000                                $15,000
Market value at Dec 31, 2021             $27/share                           $22/share

Net income in 2022                             $160,000                         $225,000
Total dividends paid in 2022                    $41,000                            $5,000
Market value at Dec 31, 2022                    $24/share                   $29/share

Question 1: Calculate the amount of the realized gain reported in M.T. Glass' 2022 income statement resulting from the sale of the AA Company stock.

Reference no: EM132582207

Questions Cloud

Calculate the book value of the equipment at december : Assuming that ABC uses the straight-line depreciation method, calculate the book value of the equipment at December 31, 2024.
Probability distribution of discrete random variable : What would be a business example if you would want to find the probability distribution of a discrete random variable?
Brand as competitive advantage : Several companies use their brand as a competitive advantage. Given your knowledge about the global economy,
Calculate the amount of the loss recorded on the sale : Mason Company, Calculate the amount of the loss recorded on the sale. Do not enter your answer with a minus sign in front of the number.
Calculate the amount of realized gain reported in mt glass : Calculate the amount of the realized gain reported in M.T. Glass' 2022 income statement resulting from the sale of the AA Company stock.
Explain what art historians are trying to gain : Review the "Questions Art Historians Use" section in the Introduction of the textbook. Select two of the five questions. Explain what art historians are trying.
Assignment - Philosophy of Life Essay : Assignment - Philosophy of Life Essay. The goal of this self-reflective paper is to help you integrate your thoughts and reflections about yourself
Graduate-level health services : In order to promote new interest and awareness of long term care as a potential career avenue for you as a graduate-level Health Services Administrator,
Identify various categories of art on exhibit at museum : We often envision a painting when we think of art though there are many different forms and categories of art. Based on your reading of "Introduction: What Is.

Reviews

Write a Review

Financial Accounting Questions & Answers

  How much money will bev have for new car

How much money will Bev have for her new car after paying off the old one assuming that all payments and compounding occur monthly?

  Analysts least likely use the financial statements to

In security valuation, analysts least likely use the financial statements to? Identify the type of accruals and valuation entry. Detect fraudulent accounting.

  Common fixed expense not traceable to individual divisions

Colasuonno Corporation... Colasuonno Corporation has two divisions: the West Division and the East Division. The corporation's net operating income is $97,500. The West Division's divisional segment margin is $38,800 and the East Division's divisiona..

  What are total costs for both making and buying the cookies

Mel’s Meals 2 Go purchases cookies that it includes in the 10,000 box lunches it prepares and sells annually. Mel’s kitchen and adjoining meeting room operate at 70 percent of capacity. Mel’s purchases the cookies for $0.76 each but is considering ma..

  How much money could the company afford to spend

A company could begin saving $5,400 per month beginning 5 months from now if they install a new machine today. How much money could the company afford to spend now to buy this machine at an (nominal) interest rate of 15% per year, compounded monthly,..

  Activity driver for each activity cost category

Calculate the cost per unit of activity driver for each activity cost category. Calculate the cost of Job 845 using ABC to assign the overhead costs. Calculate the cost of Job 845 using the plant wide overhead rate based on machine hours calculated i..

  Users of financial reporting standard

Does AASB 8 Leads to useful information to users of financial reporting standard? Or fail

  What is amount of net cash flow from investing activities

In 2014, Zoe Inc. billed its customers $57,400 for services performed. The company collected $41,100 of the amount billed. Zoe incurred $36,600 of other operating expenses on account. Zoe paid $24,700 of the accounts payable. What is the net cash flo..

  What guidance should apply to the subsequent measurement

Big Joe’s Super Cars, Present Value (Revised Revenue Guidance)   Big Joe’s Super Cars has just sold a luxury car to customer Tim. The purchase contract establishes a base price of $60,000, plus a contractual interest rate of 4%, payable in 60 monthly..

  All sales are on account and are collected

Company has sales forecasts of the following: February = $40,000; March = $65,000. All sales are on account and are collected as follows: 20% in the current month, 50% in the month following, 25% in the second month following, and 5% uncollectible. I..

  Big wave company

Big Wave Company manufactures surfboards in a wide variety of sizes and styles.

  Paid-in capital–stock options

Pastore Inc. granted options for 1 million shares of its $1 par common stock at the beginning of the current year. The exercise price is $32 per share, which was also the market value of the stock on the grant date. The fair value of the options was ..

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