Reference no: EM132576066
Central Investments bought 4,000 shares of Benet Company common stock on January 1, 2012, for $20,000, and 4,000 shares of Roy Company common on July 1, 2012, for $24,000. Benet declared dividends on December 31, 2012 of $3,000. At the end of 2012, the market value of Roy was $30,000 and the market value of Benet was $28,000. At the end of 2013, the market value of Roy was $32,000 and the market value of Benet was $24,000. The stocks were considered to be held for their long-term investment potential. Central owns 8% of Benet Company and 12% of Roy Company.
Question 1: Assume that the Roy Company stock was sold during 2014 for $31,000. The proper accounting recognition at the date of sale was
A. an unrealized loss $1,000.
B. a realized gain of $7,000.
C. a realized gain of $6,000.
D. a realized loss of $1,000.
Question 2: The 2013 year-end adjustment resulted in
A. a $12,000 reduction of stockholders' equity.
B. a $2,000 reduction of stockholders equity.
C. a $2,000 increase in stockholders equity.
D. a realized gain of $2,000.
|
Calculate the fair value of the identifiable net assets
: The fair values of these assets were: buildings $180 000, machinery $140 000. Calculate the fair value of the identifiable net assets
|
|
How much did each partner receive from march distribution
: In March Year 9 an additional $40,000 was distributed to the partners. How much did each partner receive from the March distribution? Show all calculations
|
|
Find entry in the partnership books to record the retirement
: Fair value of ?1,200,000 as settlement of his interest in the partnership. The entry in the partnership's books to record the retirement of C includes
|
|
Global initiatives
: What is the difference between leading a U.S.-based virtual cross-cultural team and a global virtual cross-cultural team?
|
|
What proper accounting recognition at the date of sale was
: Assume that the Roy Company stock was sold during 2014 for $31,000. The proper accounting recognition at the date of sale was
|
|
How much is the capital balance of a after the admission
: On July 1, 20x1, How much is the capital balance of A after the admission of C if C's admission was accounted for using the bonus method?
|
|
What defines best practice in projects
: What defines best practice in projects seeking to reduce poverty? How did ethnographic information assist in generating positive outcomes
|
|
Promotion and pricing strategies
: "Entrepreneurs must determine what to sell, to whom and how often, on what terms and at what price, and how to get the product or service to the customer.
|
|
Find the total number of units that alpha company
: Find the total number of units that Alpha Company must produce in January.Alpha company anticipated unit sales of widgets are January, 5,000
|