User Account

All Pages

What is the amount of gain the sinister recognizes

Assignment Help Financial Accounting
Reference no: EM132869611

Question - On January 1, 2020 Sinister Corporation purchased 200,000 shares of Gates, Inc. which represents 20% of the outstanding stock of Gates, Inc. for $12 per share. Sinister also obtained 2 seats on the 7 member board of directors. both Sinister and Gates use a calendar year end. During 2020, Gates made a net profit of $1,000,000, paid dividends of $400,000, recorded its first adjustment to OCI of a debit of $100,000. On December 31, 2020, Gates repurchased 10% of its outstanding shares from each of its existing shareholders, including Sinister. The Fair Market Value per share of Gates at the end of 2020 was $22. What is the amount of gain the Sinister recognizes for the sale of the shares back to Gates?

Reference no: EM132869611

Questions Cloud

Define ethics in business research : There is certain situations that occur in many business organisation in which it is difficult to tell what should be considered as wrong or right. On the basis
How much would unit cost be affected by this request : The production department's February equivalent unit cost is higher than expected. How much would unit cost be affected by this request
The world seek applicants who have soft skills : Businesses across the world seek applicants who have "soft skills." These are skills such as teamwork, collaboration, problem-solving, etc.
Determine the depreciable cost : Determine the depreciable cost. Copy equipment was acquired at the beginning of the year at a cost of $47,100 that has an estimated residual value.
What is the amount of gain the sinister recognizes : The Fair Market Value per share of Gates at the end of 2020 was $22. What is the amount of gain the Sinister recognizes for the sale of the shares back to Gates
What is the dividend income to be recorded by flair : The market value of SPHINX at that time was selling at P5 per share. What is the dividend income to be recorded by FLAIR in its books?
At what amount should the patent be reported : If the patent has a remaining life of nine years, at what amount should the patent be reported on Malinois's consolidated balance sheet at December 31, 2021
What is the dividend income to be recorded by money : What is the dividend income to be recorded by MONEY in its books? MONEY Inc. received P30,000 from DOLLAR Corp in lieu of 10,000 stock dividends.
Reflect back on ethical dilemma : Reflect back on an ethical dilemma or situation you have encountered within your organization.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd