How does transaction affect investment in ricardo account

Assignment Help Financial Accounting

Reference no: EM13139444

DeMilo, Inc., owns 100 percent of the 40,000 outstanding shares of Ricardo, Inc. DeMilo currently carries the Investment in Ricardo account at $490,000 using the equity method.

Ricardo issues 10,000 new shares to the public for $15.75 per share.

How does this transaction affect the Investment in Ricardo account that appears on DeMilo’s financial records?

Investment in Ricardo should be increased by$?

Reference no: EM13139444

Questions Cloud

Define a set of digital scales is required to measure a load : A set of digital scales is required to measure a load of 1000 N with an accuracy of ±1 N. Determine the minimum output resolution of the required ADC.

Long-standing and wide-spread persecution of jews : Why has there been long-standing and wide-spread persecution of Jews? What the differences are between Reform and Orthodox Jews in 21st century America?

What should the offer price be : Unique Catering wants to issue some 6% preferred stock that has a stated liquidating value of $100 a share. The company has determined that stocks with similar characteristics provide a 12.5% rate of return. What should the offer price be?

How to conclude that hypothesis should be rejected : A random sample of doctors was taken suppose the test statistic is z= -1.95. can we conclude that h0 should be rejected at the 1) a=.10 b) a=0.05 c) a= 0.01 level?

How does transaction affect investment in ricardo account : How does this transaction affect Investment in Ricardo account that appears on DeMilo’s financial records? Investment in Ricardo should be increased by$?

What is the molarity of urea : What is the molarity of urea, CO(NH2)2, if 98.3 mg of the 97.9% pure solid is dissolved in 5.00 ml of aqueous solution?

Explain what riobzymes and proteins have in common in terms : Explain what riobzymes and proteins have in common in terms of acid-base catalysis. What are the differences?

Explain in you own words how a modem works : Describe in you own words how a modem works and what steps the data goes through to be sent from one terminal to another via modem.

Characteristics of judaism-christianity-islam : To summarize the study of Judaism, Christianity, and Islam, consider the common characteristics that link the three traditions. Some of these characteristics might include:

User Account

All Pages