Makes an equity-method investment

Assignment Help Financial Accounting

Reference no: EM131293200

Providence Corporation makes an equity-method investment in Southampton Inc. at a purchase price of $3.4 million cash, representing 30% (at book value. of Southampton Inc. During the year, Southampton reports net income of $985,000 and Providence receives $675,000 of cash dividends from Southampton. At the end of the year, the market value of Providence’s investment is $3.1 million. At year end, what does Providence Corporation report on its balance sheet for its investment in Southampton Inc.?

a. $3,710,000

b. $3,400,000

c. $3,100,000

d. $3,020,500

e. None of the above

Reference no: EM131293200

Questions Cloud

How you plan to conduct stakeholder relations management : Taking the information and concepts provided by Kerzner, describe in your own words how you conduct/plan to conduct Stakeholder Relations Management.

Explain the application of the given management concepts : Analyze the application of these management concepts to your place of work; the paper will not simply be a report on the five functions in general.

How to implement this new innovation process in largo : Discuss how it will change the culture of the organization to be more oriented to innovation and creativity.Research way on how to implement this new innovation process in Largo. Discuss any change management issues.

Security interest in the motorcycles has priority : Hailey's Harley's gave a security interest in its inventory to HBC Bank for a $100,000 line of credit. HBC Bank perfected its security interest by filing a financing statement with the Secretary of State. Hailey's Harley used $15,000 to buy a 2013 Ha..

Makes an equity-method investment : Providence Corporation makes an equity-method investment in Southampton Inc. at a purchase price of $3.4 million cash, representing 30% (at book value. of Southampton Inc. During the year, Southampton reports net income of $985,000 and Providence rec..

Best describes the impact of these transactions on matrix : Matrix, Inc., reported a net gain of $69,000 on its foreign assets due to the weakening of the U.S. dollar in 2013. In the same year, the company disclosed unrealized gains of $1,598,000 on its available-for-sale securities and a $188,000 unrealized ..

Implement a shell-sort like parallel algorithm : Write an MPI program C language that implements a shell-sort like parallel algorithm that sorts an array of integers

Prepare multistep income statement : Using the following data, prepare a multistep income statement for Morrison Company for the month ended February 28, 2013.

What is the expected value of asset : (a) If the family own no other assets than this house, what is the expected value of their asset? (b) If the family had $25,000 sitting in a FDIC insured savings account, what would the expected value of their assets be?

User Account

All Pages