What is the carrying value of the investment on december

Assignment Help Financial Accounting
Reference no: EM132859050

Question 1: PINK Company purchased 50,000 shares (5% ownership) of WHITE Company on January 2, 2020 at ?34 per share. PINK received a stock dividend of 15% on March 31, 2020 when the market price of the share is ?40. On November 30, PINK paid ?20 per share special assessment on the shares. On December 15, 2020, WHITE paid a cash dividend of ?8 per share. On December 31, the prevailing market price of the trading security is at ?49 per share. What is the carrying value of the above investment on December 31, 2020? 

Option 1: ? 2,817,500

Option 2: ? 2,450,000

Option 3: ? 2,700,000

Option 4: ? 3,105,000

Reference no: EM132859050

Questions Cloud

How much borrowing cost shall be capitalized for lime co : P1,500,000; April 1 - P2,000,000; June 1 - P2,100,000; October 1 - P1,700,000; December 1 - P2,200,000. How much borrowing cost shall be capitalized?
Develop the Annual After-tax Cash Flow : Develop the Annual After-tax Cash Flow (ATCF's) for the leasing alternative and determine whether to replace the existing machine on economic grounds
Concept cultural integration to explain the challenges : What are the challenges ahead? Please make use of the concept ''cultural integration'' to explain the challenges
What amount should the land be recorded in the books : On December 31, the land has a fair value of ?2,100,000. At what amount should the Land be recorded in the books of CORAL?
What is the carrying value of the investment on december : On December 31, the prevailing market price of the trading security is at ?49 per share. What is the carrying value of the above investment on December 31, 2020
List the pros and cons of a call center work environment : List the pros and cons of a call center work environment for customer service representatives.
What is the ace hardware business model : What is the ACE Hardware Business model and some reasons behind they're great success
How much is the unrealized gain that should be presented : How much is the unrealized gain(loss) that should be presented in the statement of comprehensive income? PINK Company purchased 50,000 shares (5% ownership)
Crowdsourcing based intermediaries for problem solving : Describe in brief any one instances of open innovation / Crowdsourcing based intermediaries for problem solving.

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!

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