Reference no: EM132985538
Investment in Associate Grant, Inc. acquired 30% of South Co.'s voting stock for P200,000 on January 2, 2019. Grant's 30% interest in South gave Grant the ability to exercise significant influence over South's operating and financial policies. During 2019, South earned P80,000 and paid dividends of P50,000. South reported earnings of P100,000 for the six months ended June 30, 2020, and P200,000 for the year ended December 31, 2020. On July 1, 2020, Grant sold half of its stock in South for P150,000 cash. South paid dividends of P60,000 on October 1, 2020.
Problem 1: Before income taxes, what amount should Grant include in its 2019 income statement as a result of the investment?
a. P15,000
b. P24,000
c. P50,000
d. P80,000
What is the cost of equity for abc and xyz
: ABC Co. and XYZ Co. are identical firms in all respects except for their capital structures. What is the cost of equity for ABC and XYZ?
|
What was the december cash balance
: What was the December 1 cash balance? Gjumbo company had the transactions during the month of December, Payments for equipment $1496
|
What is the effect of changes in mobility patterns
: What is the effect of changes in mobility patterns, given these changes are not likely to be perceptible for 9-12 days, and potentially for up to 3 weeks
|
What is amount to repay the loan in six equal annual payment
: If the company borrows $20 million for a new warehouse/distribution facility, what is the amount to repay the loan in six equal annual payments?
|
What amount should grant include income statement
: Investment in Associate Grant, Inc., Before income taxes, what amount should Grant include in its 2019 income statement as a result of the investment?
|
What went wrong with the organization system
: What went wrong with the organization's system of internal controls that allowed this fraud to happen? What ethical dilemmas were involved?
|
How human behavior has affected financial outcomes
: How human behavior has affected financial outcomes during a pandemic and the new developments that are being reviewed in behavioural financial space?
|
What is the yield to maturity of a semi-annual coupon bond
: What is the yield to maturity (YTM) of a semi-annual coupon bond that has a $1,000 face value, a 6% coupon, 10 years remaining to maturity
|
What total budgeted manufacturing overhead for november is
: If the budgeted direct labor time for November is 8,800 hours, then the total budgeted manufacturing overhead for November is?
|