On December 28, Summit purchased Microsoft common shares for $485,000. On December 31, the shares had a

Question:

On December 28, Summit purchased Microsoft common shares for $485,000. On December 31, the shares had a fair value of $483,000. Record the initial investment by Summit and, if appropriate, an adjustment to record the investment at fair value.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Financial Accounting

ISBN: 978-1259914898

5th edition

Authors: David Spiceland, Wayne M. Thomas, Don Herrmann

See More Books

Question Posted: May 18, 2020 11:19 AM

See More Questions

* Incorrect. In the cross (or vector) product q = 1 F = -241+ -8.0 + 64k = -6.0 +2.0 +2.0k B = B + B + B What then is B in unit-vector notation if Bx = By? B = =qvx B we know that i 16 + i 16 ..t i 4...
An asset with a fair value of $170 is leased. The lease agreement is for 4 payments made in advance of $50 each year. Calculate the implicit interest rate if there is no residual. Initial...
A capital asset (equipment) with a fair value of $1,500,000 and a remaining useful life of ten years and land with a fair value of $2,000,000 is donated to a not-for-profit organization. The...
Your friend says that the law of momentum conservation is violated when a ball rolls down a hill and gains momentum. What do you say?
A sample of chromatin was partially digested by the enzyme Staphylococcal nuclease. The DNA fragments from this digestion were puriï¬ed and resolved on a polyacrylamide gel. A set of DNA...
In randomized, double-blind clinical trials of a new medical supplement, test subjects were randomly divided into two groups. The people in Group X received the new supplement while those in Group Y...
NHTSA crash safety tests. Refer to Exercise 4.21 (p. 219) and the NHTSA crash test data for new cars. One of the variables saved in the accompanying file is the severity of a drivers head injury when...
The Salinas Company produces three products, X, Y, and Z, from a joint process. Each product can be sold at the split-off point or processed further. Additional processing requires no special...
TLC Corp. is considering purchasing one of two new diagnostic machines, Ether machine would make it possible for the company to bid on jobs that it currently is not equipped to do. Estimates for each...
A physics student pulls a block of mass m = 22 kg up an incline at a slow constant velocity for a distance of d = 4.5 m. Does the incline make an angle? = 32? with the horizontal. The coefficient of...
When using the fair value method, we adjust the reported amount of the investment for changes in fair value after its acquisition. How is the change in fair value reflected in the balance sheet?
When interest rates go down, what happens to the value of an investment in bonds that pay a fixed interest rate?
In Problem, total revenue is in dollars and x is the number of units. Suppose the total revenue for a certain product is given by R(x) = 25x - 0.05x 2 . (a) Graph the marginal revenue function for...
A 3.5-kg cannon on wheels is loaded with a 0.0527-kg ball. The cannon and ball are initially moving forward with a speed of 1.27 m/s. The cannon is ignited and launches a 0.0527-kg ball forward with...
Compared to other majornations, the United States spends________ on health care and achieves________ efficiency. A. more; about the same B. about thesame; less C. more; less D. less; less E. less;...
Studying other cultures through a humanistic lens allows people to understand how different cultures came about and how and why people behave differently from one place to another (Lombrozo, 2015)....
4. Assume that G and T are exogenous, and C is determined by the standard. consumption function, but that investment is now endogenous and responds to income: I = b + bY. Assume c + b < 1. (a)...
4. You have decided it's time to buy a house, and you have found the one you want. The price is $500,000, and you will pay 10% in cash and will take a mortgage on the balance. The annual interest...
The Harris-Benedict equation estimates the number of calories your body needs to maintain your weight if you do no exercise. This is called your basal metabolic rate, or BMR. The calories needed for...
What are the main distinctions between the different schools of legal interpretation?
The accounts receivable turnover ratio will vary across companies, depending on the nature of the company's operations. For example, an accounts receivable turnover of 6 for an Internet Service...
The accounts receivable turnover ratio will vary across companies, depending on the nature of the company's operations. For example, an accounts receivable turnover of 6 for an Internet Service...
What is the principal disadvantage of the direct method of reporting cash flows from operating activities?
Assume that a company purchases land for $1,000,000, paying $400,000 cash and borrowing the remainder with a long-term notes payable. How should this transaction be reported on a statement of cash...
Given the following information, determine the beta coefficient for Stock L that is consistent with equilibrium: = 8.75%; rRF = 6.15%; rM = 9.5%. Round your answer to two decimal places.
Perpetual inventory using LIFO The following units of a particular item were available for sale during the calendar year: units are in inventory at two or more different costs, enter the units with...

On December 28, Summit purchased Microsoft common shares for $485,000. On December 31, the shares had a

Question:

Step by Step Answer:

Equity Investment Cash Investment Microsoft Common Share ...View the full answer

Financial Accounting

Students also viewed these Business questions