Rijo Corporation uses the equity method to account for its ownership of 30% of the common stock
Question:
Rijo Corporation uses the equity method to account for its ownership of 30% of the common stock of Pippen Packing. During 2012, Pippen reported a net income of $80,000 and declares and pays cash dividends of $10,000. What recognition should Rijo Corporation give to these events?
Step by Step Answer:
Rijo Corporation should recognize its share of Pippens net inc...View the full answer
Accounting Principles
ISBN: 978-0470534793
10th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
Related Video
Stocks (also known as equities) are securities that represent ownership in a company. They are issued by companies to raise capital, and when an individual buys stocks, they become a shareholder in that company. Investing in stocks can be a way for individuals to potentially earn a return on their investment through dividends and capital appreciation. However, investing in stocks also carries a level of risk, as the value of the stock can fluctuate based on various factors such as the financial performance of the company and general market conditions. For companies, issuing stocks can be a way to raise funds for growth and expansion. When a company goes public by issuing an initial public offering (IPO), it can raise significant capital by selling ownership stakes to the public. Companies can also issue additional stock offerings to raise additional capital as needed.
Students also viewed these Business questions
-
Rijo Corporation uses the equity method to account for its ownership of 30% of the common stock of Pippen Packing. During 2010 Pippen reported a net income of $80,000 and declares and pays cash...
-
Rijo SA uses the equity method to account for its ownership of 30% of the ordinary shares of Pippen Packing. During 2017, Pippen reported a net income of 80,000 and declares and pays cash dividends...
-
Rijo SA uses the equity method to account for its ownership of 30% of the ordinary shares of Pippen Packing. During 2020, Pippen reported a net income of 80,000 and declares and pays cash dividends...
-
Have you ever had to cope with the loss of a loved one? If so, what concepts described in this section provide context that may help you understand your experience and process of grieving?
-
Explain briefly how each of the following transactions would affect a companys balance sheet. (Remember, assets must equal liabilities plus owners equity before and after the transaction.) a. Sale of...
-
Assume a liter of milk typically has an activity of 2000pCi due to 40/19K. If a person drinks two glasses (0.5L) per day, estimate the total effective dose (in Sv and in rem) received in a year. As a...
-
Information disclosed in financial reports should have a number of characteristics (e.g. understandability, neutrality). What are these characteristics? Provide two examples of situations where there...
-
Selected accounts for Kebby Photography at December 31, 2018, follow: Requirements 1. Journalize Kebby Photography's closing entries at December 31, 2018. 2. Determine Kebby Photography's ending...
-
A measurement was made of the magnetic field due to a tornado, and the result was 18.00 nT to the north. The measurement was made at a position 9.70 km west of the tornado. What was the magnitude (in...
-
Wayland Custom Woodworking is a firm that manufactures custom cabinets and woodwork for business and residential customers. Students will have the opportunity to establish payroll records and to...
-
Phone-Phriends charges $44 for a cell phone plan with unlimited text and talk and 3GB of data usage per month. Each gigabyte, or part thereof, over the 3GB costs $16. Find the difference in the...
-
The Smithtown Water Company uses water meters that measure water usage in gallons. They charge $0.12 per gallon of water. If Jacks previous meter reading was 45,621 gallons and his present water...
-
What is the relationship between the audit of property, plant, and equipment accounts and the audit of repair and maintenance accounts? Explain how the auditor organizes the audit to take this...
-
Does a company benefit when an owner of the company s stock sells these shares to another individual?
-
How can organizations leverage ontologies and semantic technologies to enhance the discoverability and relevance of tacit knowledge embedded within unstructured data repositories? Explain
-
Work Innovation Network (WIN) and Productive Learning" Please respond to the following: Examine the impact that the Work Innovation Network (WIN) has had on the Knowledge Management (KM) initiative...
-
A manufacturer incurs the following costs: $38,000 developing new techniques that will be put in place shortly to cut production costs; $27,000 researching a new process to improv the quality of the...
-
How does ethical leadership transcend traditional paradigms of authority, emphasizing moral principles and values to inspire trust, foster transparency, and cultivate a culture of integrity within...
-
What uses of power would be considered unethical?
-
F.(3e* -2x 3 sin(2x)) is equal to 2 3 Cos 8. IT 3, t (4+@ 2 3, 1+o 1 4 Cos 4 4 1 3. 1 +4cos V7 (1+o 4 1 4 Cos 4 1+0 4-
-
The January 2011 issue of Strategic Finance includes an article by J. Lockhart, A. Taylor, K. Thomas, B. Levetsovitis, and J. Wise entitled When a Higher Price Pays Off. Instructions Read the article...
-
Word Wizard is a publishing company with a number of different book lines. Each line has contracts with a number of different authors. The company also owns a printing operation called Quick Press....
-
Word Wizard is a publishing company with a number of different book lines. Each line has contracts with a number of different authors. The company also owns a printing operation called Quick Press....
-
Houston stock is selling for $47 and has the following six-month options outstanding. Strike Price Option Market Price Call Option $45 $5 Call option $50 $2 a. Which option(s) is (are) in the...
-
A regional electrical distributor currently has 1,000 customers who buy an average of $5,000 per year, generating a 50% margin. From experience, the company knows that 20% of its customers will not...
-
Suppose you observed that one-year T-bills are trading with a yield to maturity (YTM) of 4.75%. The yield spread between AAA and BB rated corporate bonds is 130 basis points. The maturity yield...
Study smarter with the SolutionInn App