Income taxes on disposal of stock

Assignment Help Accounting Basics

Reference no: EM13143074

On June 1, 2009, Blue Co. distributed to its common stockholders 200,000 outstanding common shares of its investment in Red, Inc., an unrelated party. The carrying amount on Blue's books of Red's $1 par common stock was $2 per share. Immediately after the declaration, the market price of Red's stock was $2.50 per share. In its income statement for the year ended June 30, 2009, what amount should Blue report as gain before income taxes on disposal of the stock?

Reference no: EM13143074

Questions Cloud

Illustrate at what amount will the building be recorded : Patti and Pam are forming a partnership. Patti will invest a piece of equipment with a book value of $6,068 and a fair market value of $11,522. Pam will invest a building with a book value of $39,286 and a fair market value of $75,432. Illustrate ..

Social psychology attempts : Social Psychology attempts to explain the social forces that influence attitudes and actions. Topics on Stereotyping and Prejudice, Attribution Theory, and the power of social roles are important for psychologists to understand.

What will happen to the coat color of mice : If coat color in mice is not heritable and cats impose directional selection by preferring to eat brown mice, what will happen to the coat color of mice? a. mice would evolve away from brown coat color b. mice would not evolve a new coat color.

Define two types of classifiers mostly used in data mining : Two types of Classifiers mostly used in Data mining. Other than Naive Bayes and decision trees, pick two other types of classifiers and discuss how they work

Income taxes on disposal of stock : The carrying amount on Blue's books of Red's $1 par common stock was $2 per share. Immediately after the declaration, the market price of Red's stock was $2.50 per share. In its income statement for the year ended June 30, 2009, what amount should..

How many grams of water can be produced : Acetylene, C2H2, will burn in the presence of oxygen. 2C2H2(g)+ 5O2(g) -> 4CO2(g)+ 2H2O(g) how many grams of water can be produced by the reaction of 2.40 mol of C2H2 with 7.4 mol of O2?

How much overhead should dbc estimated for this job : In 2004, DBC will be submitting a bid for a job that is expected to require $810,000 in direct materials cost, $225,000 in direct labor costs, and 80,000 machine hours. How much overhead should DBC estimated for this job?

What will happen to the proportion of people with myopia : The incidence of myopia (nearsightedness) is increasing in humans. If enough people have lasik surgery to correct their eyesight, after many generations what will happen to the proportion of people with myopia? a. decrease b. remain approximately..

Amount debited to construction expenditure : In late June, the Everest Construction Co. submitted a progress billing on a construction contract for $500,000. On July 2, the bill was approved for payment, subject to a five percent retention, as provided by the contract. The amount that should..

User Account

All Pages