Reference no: EM132906020
Question - On January 1, 2019, Par Company purchased 8,000 shares of Sub Inc. (total shares issued 10,000) for $500,000 and uses the equity method to account for its investment in Sub Inc. On the acquisition date, acquisition differential totalled $60,000 all allocated to capital assets with a remaining useful life of four years. During 2019, Sub had net income of $180,000 (earned evenly over the year) and on June 1, 2019, paid dividends of $40,000. On August 1, 2019, Par sold 2,000 of the 8,000 shares that it held in Sub for proceeds of $140,000.
Required - Show all work for full marks
(a) Prepare the Par's journal entry for the sale of the shares on August 1, 2019.
(b) What will the balance in the investment account be at December 31, 2019?
|
What is the probability of randomly selected high school
: 1. For a given population of high school seniors, the Scholastic Aptitude Test (SAT) in mathematics has a mean score of 520 with a standard deviation of 100. SA
|
|
Additional analytics to understand global development
: Why we need to supplement Gross National Products (GNP) Gross Domestic Products (GDP) and Gross National Products (GNP) with the additional analytics to underst
|
|
Is this cyberattack a black swan event
: Is this cyberattack a black swan event? Or should this have been anticipated?
|
|
What is caricom
: What is Caricom? is it necessary? kindly discuss in relation to the "Brexit" experience
|
|
What will the balance in the investment account
: On August 1, 2019, Par sold 2,000 of the 8,000 shares that it held in Sub for proceeds of $140,000. What will the balance in the investment account
|
|
Governance and sustainability
: Evaluate the different levels of stakeholder analyses as well as the prioritisation process that can be used to detect, map and prioritise the stakeholder relat
|
|
Describe the main steps that occur in an open loop
: Describe the main steps that occur in an open loop system when a credit card holder makes an online purchase from a merchant, In this case, the merchant and the
|
|
What are the lessons from the acquisition of tnt express
: From a postmerger integration standpoint, what are the lessons from the acquisition of TNT express by FedEx in 2016? ( the question refers to the loss of value
|
|
What fees have you incurred on your account so far
: Question - What fees have you incurred on your account so far? How could you prevent them from happening in the future
|