What investment income should big report

Assignment Help Accounting Basics
Reference no: EM132049627

Question - On January 1, 20X1, Big Company (Big) bought 30% of the outstanding stock of Little Company (Little) for $110,000 which provided Big with the ability to significantly influence the decisions of Little. Little reported assets of $400,000 and liabilities of $100,000 on that date. As part of its analysis before buying these shares, Big determined that Little owned a patent that had not been recorded despite having a remaining useful life of five years and a value of $20,000. During 20X1, Little reported net income of $70,000 and paid cash dividends of $30,000. What investment income should Big report for 20X1?

$9,000

$19,800

$17,000

$21,000

Reference no: EM132049627

Questions Cloud

How might you handle this situation at the restaurant : Describe your reaction(s) to the situation. How do you feel about it? What is your initial reaction? How might you handle this situation at the restaurant?
What is the total cost of the purchase : What is the total cost of the purchase? What are the proceeds on the sale? What is the gain (or loss) on the transaction. Please help me with this problem.
What is the dividend per share of common stock : What are the dividends due the preferred shareholders? What is the dividend per share of common stock? Please help me with this problem.
What ways do gender and race increase environmental risk : In what ways do gender, race, and class increase a person/community's environmental risk? The response must be typed, single spaced.
What investment income should big report : During 20X1, Little reported net income of $70,000 and paid cash dividends of $30,000. What investment income should Big report for 20X1
Determine the velocity to nearest hundredth foot per second : Determine the velocity, to the nearest hundredth foot per second of the object after 1.6 seconds.
Prepare a schedule of expected cash collections from sales : Silver Company makes a product that is very popular as a Mother's Day gift. Prepare a schedule of expected cash collections from sales
Using cash flow diagramming in your analysis : Calculate the Present Worth, using Cash Flow Diagramming in your analysis.
Write a summary of the whole issue community college tuition : Write a summary of the whole issue Community College Tuition. This summary will answer the question: What is the issue about--from both perspectives?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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