Reference no: EM133003249
Question - Mark Company acquired 30% of the stock Christian Minerals Company.
Mark acquired this investment for purposes of being able to exert significant influence over the strategic plans and operations of Christian. Following are the events pertaining to this investment:
Sept 1 Purchased 150,000 shares of Christian for P 17 per share.
Sept 30 The fair value of Christian's stock for P 27 per share and the company reported September income of P 330,000.
Oct 15 The fair value of Christian's stock was P 32 per share, and the company declared and paid a dividend of P 1.25 per share.
Oct 31 The fair value of Christian's stock was P 28 per share, and the company reported October income of P 270,000.
Required -
What method should be used to account for this investment?
Prepare journal entries to account for the activity pertaining to the investment in Christian Minerals.
If the investment in Christian Minerals was insufficient to allow Mark to exert significant influence, how much would the accounting approach differ?
|
What is the break-even point for this firm in March
: Given the data below, Sales for March: $25,000 (avg price is $50) COGS: 10,000. What is the break-even point (volume of units) for this firm in March
|
|
What is ratchets rotator rate of return
: During the year it generated Php 4,000 in cash flow. If Ruzty sells it, he could receive Php 6,100 for it. What is ratchets rotator's rate of return
|
|
Calculate the net present value with a required return
: Calculate the net present value with a required return of 8%, an initial investment of $45,000, and cash flows of $12,000; $20,000, $10,000, and $6,000
|
|
Record depreciation for March
: Salmon Fisheries is owned by Matthew Kulak and provides fish products to the fishing industry. Record depreciation for March
|
|
Prepare journal entries to account for the activity
: Mark Company acquired 30% of the stock Christian Minerals Company. Prepare journal entries to account for the activity pertaining
|
|
Calculate the NPV of this investment
: Question - Sandhill Company is considering buying a new farm that it plans to operate for 10 years. Calculate the NPV of this investment
|
|
What is the present value of an annuity
: What is the present value of an annuity of $20,000 received at the end of the year for 8 years where the required rate of return is 6.25% per annum
|
|
Explain briefly the main role of the government
: Question - Explain briefly the main role of the government in the economy and how it relates to corporate governance and the decision-making of managers
|
|
What is the yield to maturity
: What is the yield to maturity (YTM) of a zero coupon bond with a face value of $1,000, current price of $920 and maturity of 3.5 years
|