Carrying value of clyde investment

Reference no: EM13153756

In January of 2011, Clyde Corporation acquired 20% of the outstanding voting common stock of Blake Company for $280,000. This investment enabled Clyde to exercise significant influence over Blake. The book value of the acquired shares was $210,000. The excess of cost over book value was attributed to an identifiable intangible asset that was undervalued on Blake's balance sheet and that had a remaining useful life of 10 years.

For the year ended December 31, 2011, Blake reported income of $63,000 and paid cash dividends of $14,000 on its common stock. What is the proper carrying value of Clyde's investment in Blake at December 31, 2011?

A) $270,000

B) $273,000

C) $280,000

D) $282,800

Reference no: EM13153756

Questions Cloud

Which of following techniques may elicit rebound tenderness : Full range of motion for each muscle or group of muscles, while applying resistance to the muscle is testing.

Stockholders equity section of cohen canoes : Prepare the stockholders equity section of Cohen Canoes Inc., balance sheet at May 31. The ending balance of retained earnings is $55,000.

Consumer''s risk and the producer''s risk : Using acceptance sampling, propose a situation in which you would be forced to utilize both the consumer's risk and the producer's risk, and then justify key usages of both within an industry of your choice. Provide specific examples to support your ..

Find mean and standard deviation for number of households : Assuming that this procedure yields a binomial distribution, find the mean and the standard deviation for the number of households in this sample who have cable TV.

Carrying value of clyde investment : For the year ended December 31, 2011, Blake reported income of $63,000 and paid cash dividends of $14,000 on its common stock. What is the proper carrying value of Clyde's investment in Blake at December 31, 2011?

How has walmart impacted vertical coordination : How has Walmart impacted vertical coordination? Your opinion does not need to be based upon the article and how has Walmart impacted performance of the US economy

Calculate the ph of the solution : A chemist dissolves 284 mg of pure potassium hydroxide in enough water to make up 140 mL of solution. Calculate the pH of the solution.

What in cells that lack camp phosphodiesterase : In cells that have a G α subunit that cannot hydrolyze GTP but can interact properly with G β and G γ.

Nonconstant growth valuation : Nonconstant Growth Valuation A company currently pays a dividend of $3.25 per share (D0 = $3.25). It is estimated that the company's dividend will grow at a rate of 20% per year for the next 2 years, then at a constant rate of 5% thereafter. The comp..

User Account

All Pages