Owns 80 percent of the voting stock of stanc

Assignment Help Accounting Basics

Reference no: EM13267796

Paris, Inc. owns 80 percent of the voting stock of Stance, Inc. The excess total fair value over book value was $75,000. Stance holds 10 percent of the voting stock of Paris. The payment for that investment was in excess of book value and fair value by $15,000. Any excess fair value is assigned to trademarks to be amortized over a 10-year period. During the current year, Paris reported operating income of $200,000 and dividend income from Stance of $20,000. At the same time, Stance reported operating income of $40,000 and dividend income from Paris of $5,000.

Reference no: EM13267796

Questions Cloud

What is its foreign tax credit for the year : DC, a Delaware corporation, owns 5 percent of the stock of FC, a country X corporation that is not engaged in a U.S. Trade/Business and whose other shareholders are foreign persons.

Several techniques available for managing risk : There are several techniques available for managing risk. For each of the following risks, identify an appropriate technique, or combination of techniques, that would be appropriate for dealing with the risk.

Bonds have the same nontax characteristics : Hugh has the choice between investing in a City of Heflin bond at 5.55 percent or a Surething bond at 8.85 percent.

The role of accounting on business and our society : The Role of Accounting on Business and Our Society

Owns 80 percent of the voting stock of stanc : Paris, Inc. owns 80 percent of the voting stock of Stance, Inc. The excess total fair value over book value was $75,000. Stance holds 10 percent of the voting stock of Paris.

Product life cycle analysis : Product life cycle analysis should not be used to select strategic alternatives based on the principle that all products and services go through several distinct stages.

Determine an equation for the force constant : A recantangular block of wood floats in a calm lake. Show, if friction is ignored, determine an equation for the force constant

Determine the output voltage for op-amp comparator circuits : Determine the output voltage for an op-amp comparator circuit with a non-inverting input reference voltage of + 2 VDC and an inverting input signal of - 1 VDC. The op amp reaches output saturation voltages of ±13 V at the limits.

When using the decision logic of strategy : When using the decision logic of strategy, there is no reason to address the five categories of strategies (directional, adaptive, market entry, competitive, and implementation) sequentially.

User Account

All Pages