Determine the book value of the investment

Assignment Help Accounting Basics
Reference no: EM132508740

Question - On January 2, 2018, All Good Company purchased 10,000 shares of the stock of Big Bad Company, and DID obtain significant influence.  The investment is intended as a long-term investment.  The stock was purchased for $10 per share, and represents a 30% ownership stake. Big Bad Company made $300,000 of net income in 2018, and paid dividends to All Good Company of $25,000 on December 15, 2018.  Big Bad Company's stock was trading on the open market for $20 per share at the end of the year.  Use this information to determine the book value of the investment that should be reported at year end by All Good Company. Round to nearest whole dollar.

Reference no: EM132508740

Questions Cloud

Calculate the net operating cycle for mushtaq : Calculate the net operating cycle for Mushtaq &Co. and Taseer & Co. based on the information Which company is more efficient with solid arguments
React with water in a hydrolysis reaction : Which of the following ions will react with water in a hydrolysis reaction: Na+, Ca+2, Fe+3, NH4+, F-, SO32-, Br- and what will the resulting pH of the solution
Organization should not jump into hybrid method : Discuss reasons an organization should not jump into a hybrid method if they are new to Agile approaches.
Mixture of hydrazine and hydrogen peroxide : A mixture of hydrazine (N2H4) and hydrogen peroxide (H2O2) is used as a fuel for rocket engines. These two substances react as shown by the equation:
Determine the book value of the investment : Use this information to determine the book value of the investment that should be reported at year end by All Good Company
General informative essay - corona virus : The Corona virus has affected the way people live their day to day lives. Social, cultural, and media environment have been altered due to this pandemic
Prepare the consolidation entries : On January 1, 2012, Smeder Company, an 80% owned subsidiary of Collins, Inc. Prepare the consolidation entries
How many joules are in 1 calorie : Extend your thinking: In addition to calculating specific heat capacities, some calorimeters can be used to determine how much energy is in food.
Find the capital balances of rivera and molina : Assuming that no asset revaluation is to be made, the capital balances of Rivera and Molina, respectively, after admission of Gutierrez are

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.

  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!

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