How much Baltimore Company should report for investment

Assignment Help Accounting Basics
Reference no: EM132481931

Question - On January 2, 2018, Baltimore Company purchased 5,000 shares of the stock of Towson Company at $15 per share. Baltimore did NOT obtain significant influence as the purchase represents a 10% ownership stake in Towson Company. On August 1, 2018, Towson Company paid cash dividends of $25,000. Baltimore Company intended this investment to a long-term investment. On December 31, 2018, Towson Company reported $75,000 of net income for FY 2018. Additionally, the current market price for Towson Company's stock increased to $25 per share at the end of the year. Use this information to determine, how much Baltimore Company should report for its investment in Towson Company on December 31, 2018.

Reference no: EM132481931

Questions Cloud

What is the forward price of a 3-month forward contract : If the 3 month risk-free rate is 5% p.a. semi-annual compounding, what is the forward price of a 3-month forward contract to buy one share of Apple?
What amount will credited for Ms beginning capital balace : M contributes $38,000 to the partnership and the bonus method is used. What amount will be credited for M's beginning capital balance
What is the average collection period-miyagi data : Miyagi Data, Inc., sells earnings forecasts for Japanese securities. Its credit terms are 1/30, net 40. Based on experience, 65 percent of all customers will ta
Identify a capital budgeting project : Identify a capital budgeting project of your choice to conduct a full CBA.
How much Baltimore Company should report for investment : Baltimore Company purchased 5,000 shares of the stock. How much Baltimore Company should report for its investment in Towson Company on December 31, 2018
Improve inventory turnover and customer satisfaction : You work for a made-to-order clothing company, whose reputation is based on its fast turnaround from order to delivery. The owner of your company is considering
Discuss which bond will trade at higher price in the market : Discuss which bond will trade at a higher price in the market. Discuss what happens to the market price of each bond if the interest rates in the economy
Identify a target population : Based on your readings, research, and personal experience, what tools (electronic and traditional) would work for your selected population and why?
Explain the hearsay rule : How do these affect the consumer buying decision? As you reflect on this week's readings and your personal experience, answer the questions

Reviews

Write a Review

Accounting Basics Questions & Answers

  The appropriate course of action.

Your contracting activity negotiated a $7,500,000 sole-source contract with the Williams Corporation about eight months ago. After the close of negotiations, Williams signed a Certificate of Current Cost or Pricing Data. During an audit for a follow-..

  What are the various internal control procedures

What is internal control and how can it protect a company's assets? What are the various internal control procedures with respect to cash receipts and payments?

  What the auditors would be most interested in reviewing

In the audit of the allocation of income for a partnership, the auditors would be most interested in reviewing:-Federal Partnership Law.

  Discuss briefly the activity-based costing concept

Discuss briefly the activity-based costing (ABC) concept and explain how ABC can differ from traditional costing approaches?

  Identify the greatest challenge or asset

In the book Strategic Vision America and the Crisis of Global Power by Zbigniew Brzezinski, he refers to the list of liabilities and assests on America's.

  On november 1 2014 ez products borrowed 48000 on a 5

on november 1 2014 ez products borrowed 48000 on a 5 10-year note with annual installment payments of 4800 plus

  Percentage-of-completion method of accounting

Calculate the income recognized by Parcell under the percentage-of-completion method of accounting in each of the years 2007, 2008, and 2009.

  On june 8 alton co issued an 76466 7 120-day note payable

on june 8 alton co. issued an 76466 7 120-day note payable to seller co. assuming a 360-day year for your calculations

  How much is lindas basis in her remaining stock

Medium Inc. had one class of stock outstanding. The one class of stock was owned 50 percent by Linda and 25 percent by each of Linda's parents.

  Louis gallo owns a small retail ice cream parlor he is

louis gallo owns a small retail ice cream parlor. he is considering expanding the business and has identified two

  Compute the journal entry to record first interest payment

The company uses the straight-line method to amortize the discount. The journal entry to record the first interest payment is

  O august 1 2013 hullie amp oates issued a 9-month note

prepare in journal entry form the adjusting journal entries for the following items. on june 1 2013 a 36-month

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