What was the balance in the investment

Assignment Help Accounting Basics

Reference no: EM13130662

Company owns 40% of the outstanding voting common stock of Nicole Corp. and has the ability to significantly influence the investee's operations. On January 3, 2011, the balance in the Investment in Nicole Corp. account was $503,000. Amortization associated with this acquisition is $12,000 per year. During 2011, Nicole earned net income of $120,000 and paid cash dividends of $40,000. Previously in 2010, Nicole had sold inventory costing $35,000 to Steven for $50,000. All but 25% of that inventory had been sold to outsiders by Steven during 2010. Additional sales were made to Steven in 2011 at a transfer price of $75,000 that had cost Nicole $54,000. Only 10% of the 2011 purchases had not been sold to outsiders by the end of 2011.

What was the balance in the Investment in Nicole Corp. account at December 31, 2011?

Reference no: EM13130662

Questions Cloud

Determining mean of percentage grades : Basic arithmetic problem - What is the overall percentage of five test grades: 96%, 98%, 89%, 95% & 97%? I need the work shown. If I took five tests and passed with the following percentages:

The articles and write a brief summary of the argument : 1.Choose one of the articles and write a brief summary of the argument presented there. Introduce the article by its author and title, then explain the author's argument (what the author claims and for what reasons.) Include an in-text citation.

Define adipic acid with two molecules of ethylamine : Adipic acid with two molecules of ethylamine, Write an equation for the formation of the salt that could be formed by reaction of one molecule of adipic acid

Fhss system uses a 4-bit pn sequence : An FHSS system uses a 4-bit PN sequence. If the bit rate of the PN is 64 bits per second What is the time needed to finish a complete cycle of PN?

What was the balance in the investment : Company owns 40% of the outstanding voting common stock of Nicole Corp. and has the ability to significantly influence the investee's operations. On January 3, 2011, the balance in the Investment in Nicole Corp.

Can she deduct all her expenses for meals and lodging : Taxpayer lives with her husband and children in City and works there. If her employer sends her to Metro (where she maintains an apartment) on business for three days and two nights each week and if Taxpayer is not reimbursed for her expenses. ..

What molar concentration of sodium nitrate will be prepared : If the chemist mistakenly makes 275 mL of solution instead of the 200 mL, what molar concentration of sodium nitrate will the chemist have actually prepared?

Analysis of credit card debt : The amount of credit card debt is $5,270.00 with an average APR of 15.53%. Considering the minimum monthly payment of $120.00 determine the interest.

Illustrate what tax advice should we provide tina : Tina is a new client for the firm. Illustrate what tax advice should we provide Tina about her prior and current tax returns concerning her songwriting career?

User Account

All Pages