What is the income reported by regal

Assignment Help Accounting Basics

Reference no: EM13120961

On January 1, 2012, the Regal Company purchased 30% of the outstanding voting stock of the Air Corporation for $300,000; the book value of Air's net assets at the date of purchase was $900,000. Regal was willing to pay more than the book value of the acquired shares because Air's depreciable assets with a ten-year remaining life was undervalued. Regal uses straight-line depreciation. During 2012, Air reported net income of $75,000 and paid dividends of $30,000. What is the income reported by Regal during 2012 pertaining to the Air investment?

Reference no: EM13120961

Questions Cloud

Amount of lois recognized gain : Beige's earnings and profits are $300,000. Beige redeems 200 of Lois' shares for $100,000. Determine the amount of Lois' recognized gain (1) if she is Sam's mother and (2) if they are unrelated.

What amount of capitalized interest should brick : What amount of capitalized interest should Brick report as part of its building account at December 31, 2011?

What is the income reported by regal : What is the income reported by Regal during 2012 pertaining to the Air investment?

Exponential functions-population growth : Human populations can be modeled using an exponential growth function. Use the Library for research or other resources to find the following:

What is the income reported by regal : What is the income reported by Regal during 2012 pertaining to the Air investment?

Area of home and selling price are positively correlated : Negatively correlated and that the area of the home and the selling price are positively correlated? Use the .05 significance level. Report the p- value of the test.

What is the income reported by regal : What is the income reported by Regal during 2012 pertaining to the Air investment?

Compute net cash provided by operating activities : Compute net cash provided by operating activities,the net change in cash during the year, and free cash flow.

Find confidence and prediction interval for selling price : Determine the 95 percent confidence interval and the 95 percent prediction interval for the selling price of a home with 2,200 square feet.

User Account

All Pages