User Account

All Pages

Determine how much total income should pon recognize

Assignment Help Accounting Basics
Reference no: EM132460247

On 1/1/20X3 the PON Company (PON) paid $100,000 for 22 percent of the outstanding voting stock of Key. At that time, the net book value of Key equaled the fair value of Key's stock. However, another corporation holds the other 78 percent ownership and does not take PON's input into consideration when making financing and operating decisions for Key. Consider that fact when determining the appropriate accounting method for PON to use for this investment.

  1. The Key Corporation (Key) reported net income for the current year of $200,000 and paid cash dividends of $30,000.
  2. At 12/31/20X3 PON's investment in Key has a fair value of $108,000. ($108,000 is the fair value of the 22% investment, not the entire Key Corporation.)

Question 1: How much total income should PON recognize for 20X3 related to this investment?

Reference no: EM132460247

Questions Cloud

What are the budgeted cash receipts from sales on account : If sales on account are budgeted to be $204,000 for April and $161,000 for May, what are the budgeted cash receipts from sales on account for May
Definition of a derivative : Does Theta's contract with Delta meet the definition of a derivative? include applicable excerpts and guidance sandwiches that relate the guidance to this fact
What happened that cause the scandal in lehman bros : What are the changes adopted by government after this scandal? Does all these changes sufficient to cover the problems from happening in the future?
Comprehensive Budgeting Problem - Determine the balances : Comprehensive Budgeting Problem - Determine the balances in the following accounts as of March 31: Accounts Receivable and Direct Materials
Determine how much total income should pon recognize : Determine How much total income should PON recognize for 20X3 related to this investment?determining the appropriate accounting method for PON to use
What compound annual rate of return did the fund : What compound annual rate of return did the fund realize during this period? Calculate the percentage
What will green report as equity in income of investee : Assume you have all the information you need to answer this. What will Green report as "equity in income of investee" for the current year?
Federal-plus-state income tax rate : It had $8.50 million of bonds outstanding that carry a 7.0% interest rate, and its federal-plus-state income tax rate was 25%. What was Rao's operating income
What rate of interest compounded monthly is built : What rate of interest compounded monthly is built into the lease? Round to the nearest percent.

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