How much be recorded as investment income for current year

Assignment Help Accounting Basics
Reference no: EM132822194

Faye Co. owned 20% of Pen Inc.'s preference share capital and 50% of the ordinary share capital. Pen Inc.'s share capital outstanding comprised the following at year-end:

10% cumulative preference share capital - 2,000,000
Ordinary share capital - 7,000,000
Pen Inc. reported net income of $5,000,000 for the current year.

Problem a. How much should be recorded as investment income for the current year?

Problem b. What amount is the balance of Investment in Pen Inc. at the end of the current year?

Problem c. How much should be recorded as investment income for the current year assuming that the preference share capital of Pen Inc. are non-cumulative?

Reference no: EM132822194

Questions Cloud

Which could be included in belle inc income before tax : How much is the maximum amount which could be included in Belle Inc.'s income before tax to reflect its "equity in earnings of the investee" for the current yea
Disadvantages of outsourcing to low cost countries : What are the advantages and disadvantages of outsourcing to Low Cost Countries (LCCS)? How can the risks of outsourcing be mitigated?
Aspects of human resources management : After being introduced to the many aspects of Human Resources Management this week, what did you find most interesting or compelling?
Prepare a income statement for the month of February : During February, the firm produced 8,500 units and sold 6,500. The selling price is $36.90 per unit. Prepare a income statement for the month of February
How much be recorded as investment income for current year : Ordinary share capital - 7,000,000. Pen Inc. reported net income of $5,000,000.How much should be recorded as investment income for the current year?
Explain administrative and operational functions : Why is it important for HR management to transform from an administrative and operational functions to a strategic partner?
Global logistics and risk management : We reviewed global logistics, risk management, and the product and supply chains.
Explain the loan taken by Dada Pty : Using the definition of the term "liability" per the Conceptual Framework, explain whether the loan of $1,000,000 taken by Dada Pty. Limited
Risk management process evaluation report : Risk management process evaluation report - valuate and report on the risk management process that you have completed in the previous two assessment tasks.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Case - SEC v Zurich Financial Services

Case - SEC v. Zurich Financial Services. Provide a brief discussion of the auditor liabilities and the potential defenses. What are the brief facts of the case

  How much is the initial measurement of the masthead

W Co. acquired the intangible assets listed below for a total lump sum price of P400,000. How much is the initial measurement of the masthead

  At what average issue price were merck common shares issued

Analyzing and Computing Issue Price, Treasury Stock Cost - Using December 31, 2014 balances, at what average issue price were the Merck common shares issued

  Determine the increase or decrease in the cost per equivalen

Determine the increase or decrease in the cost per equivalent

  Amount of the adjusting entry for bad debt expense

Using the percentage-of-sales method, you estimate that total uncollectible accounts is $7,345. The Allowance for Doubtful Accounts prior to adjustment has a debit balance of $1,345. The Accounts Receivable balance is $55,909. The amount of the..

  What amount will grouper receive

Grouper Inc. issues $2,085,900 of 9% bonds due in 12 years with interest payable at year-end. What amount will Grouper receive when it issues the bonds

  Primm company produces a product that requires four

primm company produces a product that requires four standard gallons per unit. the standard price is 24.50 per gallon.

  What is the competitive environment faced by dakota office

You are required to submit a two page typed minor case study that will contain four sections. What is competitive environment faced by Dakota Office Products

  What is the impact of each cost-flow

Discuss in detail how to determine the various items that should be included in the ending inventory. What is the impact of each cost-flow

  Find the probability that are both women

If two different people are randomly selected from the 884 subjects, find the probability that they are both women. Round to four decimal places.

  O the basis of the material and labor cost estimates

variable costs per unit in 2009 will be the same as variable costsper unit in 2008.bull plant rental and equipment

  What is the tax effect resulting from the loss from the sale

The tax rate is 25%. What is the tax effect resulting from the profit or loss from the sale of the equipment (where a negative number means tax is payable)

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