Determine the unrealized gain or loss on the investment

Assignment Help Financial Management
Reference no: EM132378574

Question

On January 2, 2019, All Good Company purchased 8,000 shares of the stock of Big Bad Company, and DID NOT obtain significant influence. The investment is intended as a long-term investment. The stock was purchased for $12 per share, and represents a 10% ownership stake.

Big Bad Company made $475,000 of net income in 2019, and paid dividends to All Good Company of $5,000 on December 15, 2019. On December 31, 2019, Big Bad Company's stock was trading on the open market for $15.50 per share at the end of the year. Use this information to determine the unrealized gain or loss on the investment that should be reported at year end by All Good Company. If it is a loss, enter as a negative number. Round to nearest whole dollar.

Reference no: EM132378574

Questions Cloud

HUMN 4402 Planning and Budgeting Assignment Problem : HUMN 4402 Planning and Budgeting Assignment help and solution, Walden University, Homework help - developing an argument for the expenditure
Identify one professional journal and one nursing conference : Dissemination of EBP and research, such as presenting results at a conference or writing an article for a journal, is an important part of professional.
Determine the value of the interest expense for fiscal year : On January 1, 2018, Baltimore Company issued $200,000 face value, 6%, 10-year bonds at 102. Interest is paid annually on January 1. Baltimore uses
Describe the levels of evidence in peer-reviewed articles : Describe the levels of evidence in each of the four peer-reviewed articles you selected, including an explanation of the strengths of using systematic reviews.
Determine the unrealized gain or loss on the investment : Determine the unrealized gain or loss on the investment that should be reported at year end by All Good Company. If it is a loss, enter as a negative number.
Discuss possible pitfalls during the implementation phase : Recorded presentation between 7 and 12 minutes in length. The presentation should include a PowerPoint and oral presentation of the slides.
What is net cash received over the life of bond investment : The straight line method of amortization is used for both premiums & discounts. What is the net cash received over the life of the bond investment?
Identify ethical theory relied upon in making your decision : Identify the ethical theory relied upon in making your decision in question 1 and explain why that theory was selected and is best for FOY in this matter.
Prepare journal entries to record each of the merchandising : Prepare journal entries to record each of the merchandising transactions assuming that the company records purchases using the net method.

Reviews

Write a Review

Financial Management Questions & Answers

  Estimated reduction in collection and processing time

The estimated reduction in collection and processing time is one day. Treasury bills are currently yielding 5 percent per year and there are 365 days per year.

  What benefits are gained from research planning and the

question 1.what benefits are gained from research planning and the analysis of financial statements? include sources

  How much more-less would it cost you to own the hybrid

If you plan to sell the Accord after five years, how much more/less would it cost you to own the Hybrid? You plan to pay cash for the car.

  Paying for the benefit of having controlling interest

Does "fair value" include paying for the benefit of having a controlling interest? How would various reasonable definitions of "fair" sway the judges' opinions?

  What is an interest tax shield

Briefly explain the role of financial leverage in affecting returns on equity ? What is an interest tax shield, and how does this affect the value of a company?

  How much money do you have if you hold bond to? maturity

If you can reinvest coupons at a rate of 1?% per? annum, then how much money do you have if you hold the bond to? maturity?

  Considering three-year expansion project

Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.64 million. The fixed asset will be depreciated straight-line to zero over its three-year tax life, after which time it will be w..

  Calculate the bonds yield to maturity

A 20-year, 8% semiannual coupon bond with a par value of $1,000 may be called in 5 years at a call price of $1, 040. The bond sells for $1, 100.

  The average annual return over the period

The average annual return over the period 1886-2006 for stocks that comprise of the S and P 500 is 10% and the standard deviations of returns is 20%. Based on these numbers, what is a 95% confidence interval for 2007 returns?

  Two WACC components-Debt and Equity

Assume that Marriott uses only two WACC components – Debt and Equity (common stock). Calculate the WACC for each of the three Marriott divisions (lodging, contract services, and restaurants). Be sure to document and explain the reasons for any assump..

  Value of share of stock is the present future cash flows

The free cash flow valuation model is based on same principle as dividend valuation? models; that? is, value of share of stock is the present future cash flows.

  Lease new computer data processing system

Suppose Clorox can lease a new computer data processing system for $ 977 comma 000$977,000 per year for five years.

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