What is the balance in the investment

Assignment Help Accounting Basics
Reference no: EM13153276

On January 1, Puckett Company paid $1.6 million for 50,000 shares of Harrison's voting common stock, which represents a 40 percent investment. No allocation to goodwill or other specific account was made. Significant influence over Harrison is achieved by this acquisition. Harrison distributed a dividend of $2 per share during the year and reported net income of $560,000. What is the balance in the Investment in Harrison account found in the financial records of Puckett as of December 31?

a. $1,724,000

b. $1,784,000

c. $1,844,000

d. $1,884,000

Please show calculation, thanks.

Reference no: EM13153276

Questions Cloud

Use of analytical procedures in auditing : How are the analytical procedures used in an audit engagement? What premise underlies the use of analytical procedures in auditing? What sources of information can an auditor use to develop expectations? Please provide examples.
Determining economic order quantity : What is the economic order quantity? Purchasing at the EOQ recommended level, what are the relevant total costs?
What is the balance in the investment : Significant influence over Harrison is achieved by this acquisition. Harrison distributed a dividend of $2 per share during the year and reported net income of $560,000. What is the balance in the Investment in Harrison account found in the financ..
Discuss how the structure of the dna molecule : Discuss how the structure of the DNA molecule is well-suited for its function of storing and transmitting hereditary information and describe how DNA is passed from parent to offspring through generations?
Cost and installation of machinery : Prepare entries to record the purchase of the land, the cost and installation of machinery, the first five month's depletion assuming the land has a net salvage value of zero after the ore is mined
Are there systematic effects of time remaining after regress : Connect the successive points by line segments to help see the pattern. Are there systematic effects of time remaining after we regress consumption on price?
How much energy (in kilojoules) is required : How much energy (in kilojoules) is required to convert 225 mL  of diethyl ether at its boiling point from liquid to vapor if its density is 0.7138 g/mL?

Reviews

Write a Review

Accounting Basics Questions & Answers

  General formula for calculating adjusted basis of property

Identify and describe the general formula for calculating the adjusted basis of property. What is Leon's recognized gain

  Which are paid by the employer

What payroll taxes are paid by the employee? Which are paid by the employer? What types of reports are used to document to the government the payroll taxes paid by the employer and employee?

  Description of debits and credits

What are debits and credits? In your opinion, why do accountants debit asset accounts to increase them but credit liability accounts to increase them?

  Revenues and gains in the statement of activities

Which of the following items would not be reported in the section on revenues and gains in the statement of activities of a private college or university?

  Amount of interest income of foster company

On January 1, 2004, Foster Company sold property to Agler Company which originally cost Foster $570,000. There was no established exchange price for this property.

  Determining return on common stockholders equity

What is the return on common stockholders' equity?

  Hortons available-for-sale investment

Ignoring income taxes, the amount reported in Horton's 2010 income statement as a result of Horton's available-for-sale investment in Lopez was:

  Amount of richard realized gain

Richard exchanges a building with a FMV of $75,000, a basis of $35,000, and subject to a liability of $25,000 for land with a FMV of $50,000 owned by Bill. What is the amount of Richard's realized gain?

  Fair market value to the partnership

Terri receives $30,000 cash and accounts receivable with a $20,000 basis and a $22,000 fair market value to the partnership. What gain or loss does Terri recognize, and what is her basis in the accounts receivable?

  Straight-line amortization for patents

Harrel Company acquired a patent on an oil extraction technique on January 1, 2010 for $5,000,000. It was expected to have a ten-year life and no residual value. Harrel uses straight-line amortization for patents. On December 31, 2011, the future ..

  Cost of goods sold and gross profit rate

At the beginning of the year, Downtown Athletic had an inventory of $200,000. During the year, the company purchased goods costing $800,000. If Downtown Athletic reported ending inventory of $300,000 and sales of $1,050,000, their cost of goods so..

  Compute the budgeted revenues in yen

Dirt Bike Co in Japan has a division that manufactures two-wheel motorcycles. Its budgeted sales for Model G in 2003 is 800,000 units. Dirt Bike's target ending inventory is 100,000 units, and its beginning inventory is 120,000 units.

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