Fair value of identifiable net assets

Assignment Help Accounting Basics

Reference no: EM13122207

On July 1, 2011, Tremen Corporation acquired 40% of the shares of Delany Company. Tremen paid $3,000,000 for the investment, and that amount is exactly equal to 40% of the fair value of identifiable net assets on Delany's balance sheet. Delany recognized net income of $1,000,000 for 2011, and paid $150,000 quarterly dividends to its shareholders. After all closing entries are made, Tremen's "Investment in Delany Company" account would have a balance of:

a. $3,080,000

b. $3,000,000

c. $3,200,000

d. $3,160,000

Reference no: EM13122207

Questions Cloud

Create percent confidence interval for the population mean : The standard deviation of the sample was 6.2 weeks. Construct a 95 percent confidence interval for the population mean. Is it reasonable that the population mean is 28 weeks?

Illustrate what was considered a hostile takeover : Over the next several weeks, Frank never saw any of the industry's logo items being worn or used by the workers. Instead the workers were uncommunicative towards him and at times even hostile

Reflection paper over power of positive thinking : a reflection paper write a 3 page paper double spaced over the book The Power of Positive Thinking by Dr. Norman Vincent Peale and also to include some quotes from the book as well.

Determining algebra and graphing : A person is planning on saving money according to a rigid savings schedule. Saving plan A is to make an initial deposit of $400 and then deposit $20 per month into the account.

Fair value of identifiable net assets : On July 1, 2011, Tremen Corporation acquired 40% of the shares of Delany Company. Tremen paid $3,000,000 for the investment, and that amount is exactly equal to 40% of the fair value of identifiable net assets on Delany's balance sheet.

An experimental test to detect a particular type of cancer : An experimental test to detect a particular type of cancer indicates the presence of cancer in 90% of individuals known to have this type of cancer, and in 15% of individuals known to be cancer-free (false positive)

Determine number of left handers in the sample : The proportion of left handers is 0.10. What is the number of left handers in the sample and what notation is given to that number? What is the values of p and ^p?

Explain how do decisions concerning span of management : Explain how do Decisions concerning span of management and the use of committees and coordination techniques affect basic organizational structure

Calculate the total kinetic energy of the gaseous mixture : A 100.-L flask contains a mixture of methane, CH4, and argon at 25C. The mass of argon present is 228 g and the mole fraction of methane in the mixture is 0.650. Calculate the total kinetic energy of the gaseous mixture.

User Account

All Pages