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

  Discuss the actions of the directors of kasbian

Identify and discuss the critical factors which may influence the future cash flow generation of Kasbian Ltd and critically discuss the actions of the directors of Kasbian Ltd in declaring and paying a dividend in 2008.

  Manipulate the recording of year end transactions

Can managers manipulate the recording of year end transactions? Give an example of a company that manipulated transactions at year end. Describe what type of transactions were involved, and what the dollar amount was. What is the impact of such trans..

  What direct material cost would boateng allocate

The company paid $380,000 for direct materials in the period. What direct material cost would Boateng allocate to abnormally spolied units?

  1 financial statement analysis a is application of

1. financial statement analysis a. is application of analytical tools to general-purpose financial statements and

  Clarify the point for jerry gatewood

Accounts receivables does not decrease when an uncollectible account is written off under the allowance method. Clarify this point for Jerry Gatewood.

  Tax deduction immediately upon payment

According to AASB 112, the prepayment of rent of $2,000 that is claimed as a tax deduction immediately upon payment (assuming an income tax rate of 30%) will give rise to:

  Prepare bank reconciliation for blockwood checking account

On October 31, 2018, the bank statement for the checking account of Blockwood Video shows a balance of $12,751, while the company’s records show a balance of $12,381. Prepare a bank reconciliation for the Blockwood checking account on October 31, 201..

  Show the effect of presenting an event

Use the horizontal model (or write the journal entry) to show the effect of the sale of the season tickets, use the horizontal model (or write the journal entry) to show the effect of presenting an event.

  What the benefits to joining your selected professional

200914 Working in Professions Assignment - Executive Summary and Presentation, Western Sydney University, Australia. What the benefits to joining

  Calculate controlling interest in consolidated income

Pearson Company owns 90% of the outstanding common stock of Spring Company, Calculate controlling interest in consolidated income for 2015

  Describe the current convergence efforts

Describe the current convergence efforts of the FASB and IASB in the area of accounting for taxes. Need more help on this one?

  Which alternatives represents the net cash generated

Which alternatives represents the net cash generated from/used in operations in the statement of cash flows of Brilliant CC for the year ended 28 February 2020?

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