Journal entry to record lion portion of apc income

Assignment Help Business Management
Reference no: EM132709960

Lion Company purchases an investment in Africa Preserve Company at the purchase price of $6 million cash. This represents 25% of the book value of Africa Preserve. During the year, Africa Preserve reports net income of $1,200,000 and pays cash dividends of $100,000. At the end of the year, the fair value of Lion's investment is $6.4 million. Think about the journal entries to be recorded for this investment and answer the following questions.

1. What is the name of the account that will be debited when the initial purchase is recorded?

2. What is the debit, the credit and the amount in the journal entry to record Lion's portion of APC's income?

3. What is the name of the account and the amount to be credited when the annual dividend is received?

4. At what amount will the investment be reported at the end of the year?

Reference no: EM132709960

Questions Cloud

How much is the percentage tax : A stockholder or a closely held corporation owns 100,000 shares before the IPO. How much is the percentage tax
What is the ffo per share : The REIT has 80 million shares outstanding. What is the FFO per share?
Which an installment loan is a : Which An installment loan is a? Loan that allows you to receive merchandise such as a refrigerator. / Direct loan of money for personal purposes
What is the effective rate for the year : A financial institution quotes a rate of 5.73 percent compounded monthly. What is the effective rate for the year?
Journal entry to record lion portion of apc income : Lion Company purchases an investment in Africa Preserve Company at the purchase price of $6 million cash. This represents 25% of the book value of Africa
What powers are extended to the federal government : What powers are extended to the federal government? Explain in detail. What powers are extended to the state governments?
What is the pharmacodynamic process : Consider factors that might have influenced the patient's pharmacokinetic and pharmacodynamic processes, such as genetics (including pharmacogenetics).
Which cost flow method should quality diamonds select : Assume that Quality Diamonds use the specific identification cost flow method. Which cost flow method should Quality Diamonds select
American government : What are the 3 branches of the U.S. government? Explain. Describe what the powers are for each branch.

Reviews

Write a Review

Business Management Questions & Answers

  Caselet on michael porter’s value chain management

The assignment in management is a two part assignment dealing 1.Theory of function of management. 2. Operations and Controlling.

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. Due to increase in the preference for light beer drinkers, Chris Prangel wants to introduce light beer version in Mountain Man. An analysis into the la..

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. An analysis into the launch of Mountain Man Light over the present Mountain Man Lager.

  Analysis of the case using the doing ethics technique

Analysis of the case using the Doing Ethics Technique (DET). Analysis of the ethical issue(s) from the perspective of an ICT professional, using the ACS Code of  Conduct and properly relating clauses from the ACS Code of Conduct to the ethical issue.

  Affiliations and partnerships

Affiliations and partnerships are frequently used to reach a larger local audience? Which options stand to avail for the Hotel manager and what problems do these pose.

  Innovation-friendly regulations

What influence (if any) can organizations exercise to encourage ‘innovation-friendly' regulations?

  Effect of regional and corporate cultural issues

Present your findings as a group powerpoint with an audio file. In addition individually write up your own conclusions as to the effects of regional cultural issues on the corporate organisational culture of this multinational company as it conducts ..

  Structure of business plan

This assignment shows a structure of business plan. The task is to write a business plane about a Diet Shop.

  Identify the purposes of different types of organisations

Identify the purposes of different types of organisations.

  Entrepreneur case study for analysis

Entrepreneur Case Study for Analysis. Analyze Robin Wolaner's suitability to be an entrepreneur

  Forecasting and business analysis

This problem requires you to apply your cross-sectional analysis skills to a real cross-sectional data set with the goal of answering a specific research question.

  Educational instructional leadership

Prepare a major handout on the key principles of instructional leadership

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