Refer to the Continental data in E-Q-32. On December 31, Continentals balance sheet should report a. Dividend

Question:

Refer to the Continental data in E-Q-32. On December 31, Continental’s balance sheet should report

a. Dividend revenue of $37,000.

b. Investment in equity securities of $554,000.

c. Investment in equity securities of $550,000.

d. An unrealized gain of $4,000.

Data from E-Q-32

Continental Bank, a nationwide banking company, owns many types of investments. Continental paid $550,000 for equity securities on December 5. Continental owns less than 10% of the stock of the companies in which it invests. Two weeks later, Continental received a $37,000 cash dividend. On December 31, these equity securities were quoted at a market price of $554,000.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...

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