Evaluate the book value of the investment

Assignment Help Financial Accounting
Reference no: EM132695780

Problem 1: On January 2, 2018, All Good Company purchased 7,000 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 $15 per share, and represents a 30% ownership stake. Big Bad Company made $400,000 of net income in 2018, and paid dividends to All Good Company of $40,000 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: EM132695780

Questions Cloud

What is the frequency of the w allele : Coat colour in cattle is determined by the mast cell growth factor gene. Red cattle are homozygous for the R allele, white cattle are homozygous W allele
Would a personality assessment be an appropriate tool : Would a personality assessment be an appropriate tool for diagnosis? Why or why not? Additional information about each test to include the price, length of time
Discuss potential costs of an it system adoption : Describe and discuss management/administrative and financial system applications and Discuss potential costs of an IT system adoption of administrative
Problem - Calculating Taxes on Security Transactions : Problem - Calculating Taxes on Security Transactions - She sold stock for $1,000 that she purchased for $1,500 15 months earlier
Evaluate the book value of the investment : All Good Company purchased 7,000 shares of the stock, Evaluate the book value of the investment that should be reported at year end by All Good Company.
Penetration testing is simulated cyberattack : Penetration testing is a simulated cyberattack against a computer or network that checks for exploitable vulnerabilities.
Expected frequency of seeds : What is the expected frequency of seeds that will grow into plants with red-striped leaves?
Calculate her taxable income and tax liability : In addition, she had interest income of $142. She takes the standard deduction. Calculate her taxable income, tax liability, and tax refund or tax owed for 2018
Recognize and understand the basic concepts of designing : Recognize and understand the basic concepts of designing and Operating the Supply chain/distribution channel of a firm - How to insure that this design

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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