What was the balance in the investment

Assignment Help Accounting Basics
Reference no: EM131792757

Question - Atlarge Inc. owns 30% of the outstanding voting common stock of Ticker Co. and has the ability to significantly influence the investee's operations and decision making. On January 1, 2011, the balance in the Investment in Ticker Co. account was $402,000. Amortization associated with the purchase of this investment is $8,000 per year. During 2011, Ticker earned an income of $108,000 and paid cash dividends of $36,000. Previously in 2010, Ticker had sold inventory costing $28,800 to Atlarge for $48,000. All but 25% of this merchandise was consumed by Atlarge during 2010. The remainder was used during the first few weeks of 2011. Additional sales were made to Atlarge in 2011; inventory costing $33,600 was transferred at a price of $60,000. Of this total, 40% was not consumed until 2012.

What was the balance in the Investment in Ticker Co. account at the end of 2011?

A. $401,136.

B. $413,872.

C. $418,840.

D. $412,432.

E. $410,148.

Reference no: EM131792757

Questions Cloud

Determine the depreciation for the month : During October the generator was operated 380 hours. Determine the depreciation for the month
Discuss problem on the savings account : Future Value: It is now January 1, 2014. Today you will deposit $ 1,000 into a savings account that pays 8%.
Why would a company choose one type over another : What are the types of budgets organizations can use? How are they different and why would a company choose one type over another?
Find the price the industry should set : Find the price the industry should set and the number of units it should produce to obtain maximum profit. Find the maximum profit.
What was the balance in the investment : Atlarge Inc. owns 30% of the outstanding voting common stock of Ticker Co., What was the balance in the Investment in Ticker Co. account at the end of 2011
Why credit crisis or credit crunch events in american affect : What we are asking ourselves here is why the credit crisis or credit crunch events in American are affecting the UK credit situation in such a dramatic way, and
How many units must be sold to break even : What is the total sales that must be generated for the company to earn a profit of $60,000? How many units must be sold to break even
Joins new religious sect called christs little sheep : Joe Smith, a police patrolman, joins a new religious sect called Christ's Little Sheep. just the way he does his job? If not, what else can the department argue
Find the quantity that gives maximum profit : Find the quantity that gives maximum profit, and find the maximum profit. What selling price should the corporation set for its product?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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