Solution-Find what amount should grant include in income

Find what amount should grant include in income statement

Assignment Help Accounting Basics

Reference no: EM132704688

Grant, Inc. acquired 30% of South Co.'s voting stock for $200,000 on January 2, 2015. Grant's 30% interest in South gave Grant the ability to exercise significant influence over South's operating and financial policies. During 2015, South earned $80,000 and paid dividends of $50,000. South reported earnings of $100,000 for the six months ended June 30, 2016, and $200,000 for the year ended December 31, 2016. On July 1, 2016, Grant sold half of its stock in South for $150,000 cash. South paid dividends of $60,000 on October 1, 2016.

Problem 1: Before income taxes, what amount should Grant include in its 2015 Income Statement as a result of the investment?

Option1 : $24,000

Option2 : $80,000

Option3 : $50,000

Option4 : $15,000

Reference no: EM132704688

Questions Cloud

How many shares were issued for sicat co : Common stock with total market value equal to that of Max net assets. To recognize goodwill of P200,000, how many shares were issued?

How can organizations combat employee dishonesty : How can organizations combat employee dishonesty? What can an organization do to encourage honest behavior among its workforce?

Write an internal report in preparation for an investigation : You are a forensic accountant working for the Serious Fraud Office - write an internal report in preparation for an investigation into GoGreen Hedgehogs

Emergency managers : List and fully describe 7-10 of your selected county's core stakeholders that it includes (or should include) in its most central plan.

Find what amount should grant include in income statement : Grant, Inc. acquired 30% of South Co.'s, Before income taxes, what amount should Grant include in its 2015 Income Statement as a result of the investment?

Describe communication situations in organizational setting : Describe communication situations in an organizational setting, where you think email should be used and where email should not be used as the primary medium.

Interest groups to continue to operate : What do you think would happen to our nation if we did not allow interest groups to continue to operate?

Which area contributes most to helping the company : This book cover four HRM practice areas managing the Human Resources environment acquiring and preparing Human Resources assessment and development.

How do state the book value of the truck on december : How do state the book value of the truck on December 31, 2020. A company purchased a truck on March 1, 2019 at a cost of $100,000.

User Account

All Pages

Find what amount should grant include in income statement

Reference no: EM132704688

Reference no: EM132704688

Questions Cloud

Reviews

Write a Review

Accounting Basics Questions & Answers

How much control does fed have over this longer real rate

Coures:- fundamental accounting principles

Accounting problems

Theory of interest - term structure of interest rates

Write a report on internal controls

Prepare the bank reconciliation for company

Cost-benefit analysis

Theory of interest

Liquidity and profitability

What is the expected risk premium on the portfolio

Simple interest and compound interest

Capm and venture capital

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT