How much should kim report as gain from the sale

Assignment Help Financial Accounting
Reference no: EM132864563

Problem 1: Kim Company acquired 30% of Kourtney Company's voting stock for $200,000 on January 2, 2019. During 2019, Kourtney earned $80,000 and paid dividends of $50,000. Kourtney reported earnings of $100,000 for the six months ended June 30, 2020, and $200,000 for the year ended December 31, 2020. On July 1, 2020, Kim sold half of its stock in Kourtney for $150,000 cash. Kourtney paid dividends of $60,000 on October 1, 2020. In its 2020 income statement, how much should Kim report as gain from the sale of half of its investment?

Reference no: EM132864563

Questions Cloud

Physician practices : Some physician practices will bill at rates from 100% of Medicare to 500% of Medicare. Which one do you think is correct and why?
Favorable or unfavorable influence on price of bond : Prior to beginning work on this assignment, read Chapters 10 and 11, and review the PowerPoint slides for these chapters. In this assignment, make your initial
How much is gain to be recognized in profit for jose corp : How much is the gain to be recognized in profit or loss for the year ended December 31, 2020 in respect of the investment property?
Decisions and promote ethical standards within organizations : Describe briefly the legal rights and privileges of common stockholders and What is free cash flow (FCF)? What is the weighted average cost of capital?
How much should kim report as gain from the sale : Kourtney paid dividends of $60,000 on October 1, 2020. In its 2020 income statement, how much should Kim report as gain from the sale of half of its investment?
Uber and the sharing economy : According to the case: "Uber and the Sharing Economy: Global Market Expansion and Reception"
What are the characteristics of public good : Explain the unique characteristics of the four primary market structures. What are the characteristics of a public good?
Side effects of technological development on society : Currently, our technology is getting better. Are there any side effects of this technological development on society?
Prepare a trial balance at july on a worksheet : Journalize and post the July transactions. Use page J1 for the journal and the three-column form of account. Prepare a trial balance at July 31 on a worksheet.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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