FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A firm acquires 30% of an investee's stock for $100,000. If the fair value of the stock increases to $130,000 and the investee reports $500,000

image text in transcribed
A firm acquires 30% of an investee's stock for $100,000. If the fair value of the stock increases to $130,000 and the investee reports $500,000 in net income and also pays a total dividend of $50,000 then how much income will the firm (the investor) report on its income statement

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Development Of Accounting And Auditing Systems In China

Development Of Accounting And Auditing Systems In China

Authors: Xu-Dong Ji

1st Edition

0415792886, 978-0415792882

More Books

Students also viewed these Accounting questions

Question

★★★★★
Evaluate Mr. Immelt as a strategic leader.

Answered: 1 week ago

Question

★★★★★
=+25. Refer to the advice on page 236, and revise the following sentences to eliminate euphemisms.

Answered: 1 week ago

Question

★★★★★
Is there cisgender privilege? Explain your reasoning.

Answered: 1 week ago

Question

★★★★★
The village of Fay was recently incorporated and began financial operations on July 1, 2018, the beginning of its fiscal year. The following transactions occurred during this first fiscal year from...

Answered: 1 week ago

Question

★★★★★
A firm acquires 30% of an investee's stock for $100,000. If the fair value of the stock increases to $130,000 and the investee reports $500,000 in net income and also pays a total dividend of $50,000...

Answered: 1 week ago

Question

★★★★★
Bond Coupon Time to Maturity (Years) Modified Duration (Years) Current Yield to Maturity Forecasted Yield to Maturity Expected Change US Treasury 6% 3 3 2% 1% 1% IBM 6% 5 4 3% 2% 1% Ford 5% 10 7 6%...

Answered: 1 week ago

Question

★★★★★
In explaining why monetary policy did not pull Japan out of a recession in the early 2000s, an official at the Bank of Japan was quoted as saying that despite "major increases in the money supply"...

Answered: 1 week ago

Question

★★★★★
2. [4 points] Find the constrained minimum and maximum values of the function f(x, y) = (x-2y)2 subject to the constraint x + y = 5, as well as all points at which they occur.

Answered: 1 week ago

Question

★★★★★
The FDIC asserted gross negligence by Crowe. Allegedly, there was concealment and collusion to pep petrate a fraud within the bank and from outside sources. Crowe was held to the AICPA's standards...

Answered: 1 week ago

Question

★★★★★
To close out this Portfolio Project, you will reflect on the project as a whole. This reflection will be delivered orally in the format of a PowerPoint with voiceover, with a total recording length...

Answered: 1 week ago

Question

★★★★★
Your friend Pablo owns company called "Essential Eats" (EE for short). EE makes baked goods using a free community kitchen. Pablo sells them at a local weekly sport park meet up. The sports park...

Answered: 1 week ago

Question

★★★★★
Understand some of the infl uences on the business environment that have changed the approaches to employing people.

Answered: 1 week ago

Question

★★★★★
Design a job advertisement.

Answered: 1 week ago

Question

★★★★★
10-20 Describe the six features of social commerce. Provide an example for each feature describing how a business could use that feature for selling to consumers on line.

Answered: 1 week ago

Previous Question Next Question