Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jun 27, 2024

a) On January 1, Prescott purchased a strategic investment of 4,000 shares in Louis Inc. for $7 per share. This represents 30% of Louis Inc.

a) On January 1, Prescott purchased a strategic investment of 4,000 shares in Louis Inc. for $7 per share. This represents 30% of Louis Inc. common shares. On December 31, Louis Inc. declares and pays a $25,000 dividend and reports a net income of $180,000. Prescott will use the equity method to record this investment.

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

Ethical Obligations And Decision Making

Ethical Obligations And Decision Making

Authors: Steven Mintz

1st Edition

0078025281, 9780078025280

More Books

Students also viewed these Accounting questions

Question

★★★★★

Construct a relative frequency histogram using the frequency distribution in Exercise 1. Then determine which class has the greatest relative frequency and which has the least relative frequency. Use...

Answered: 1 week ago

Question

★★★★★

Provide a brief description of the term product strategy.

Answered: 1 week ago

Question

★★★★★

6.39 Let X be a binomial random variable with n = 100 and p = 0.2. Find approximations to these probabilities: a. P(X>22) b. P(X22) c. P(20

Answered: 1 week ago

Question

★★★★★

Compute trend percentages for Peak Valley Sales & Services total revenue and net income for the following five-year period, using year 0 as the base year. Round to the nearest full percent. Which...

Answered: 1 week ago

Question

★★★★★

Youve observed the following returns on Bennington Corporations stock over the past five years: 19 percent, 13 percent, 16 percent, 21 percent, and 10 percent. Suppose the average inflation rate over...

Answered: 1 week ago

Question

★★★★★

Case 3 (25 points) Imagine you are head of the food and beverage department in a large Los Angeles hotel complex. One of the hotel's restaurants currently generates an ROI of 11%, based on a value of...

Answered: 1 week ago

Question

★★★★★

If employees don't buy into the plan then management will be acting on their own. How can management encourage employees to buy into the need to be checked on their way out? Multiple Choice Utilize...

Answered: 1 week ago

Question

★★★★★

A random forcing, with a bandwidth of 0-30Hz, is applied to a structure. The response is measured and converted to the frequency domain, and the mobility Nyquist plot is shown below. How many modes...

Answered: 1 week ago

Question

★★★★★

The Company did not have a consistent thinking and planning process in place and the quality of strategy differed dramatically across the organization. Desire was to create a uniform strategic...

Answered: 1 week ago

Question

★★★★★

Explain this question, please. There is nothing else, just the last questions, but I can see before answer the other one. . Bridging Problem: Magnetic Torque on a Current-Carrying Ring 5 of 8 Review...

Answered: 1 week ago

Question

★★★★★

A mixed palletized cargo in a consolidation container - You are asked to load the following consolidation in Montral into a container (all dimensions as LWH) Ex Edmonton 2 pallets of pressure gauges...

Answered: 1 week ago

Question

★★★★★

Answered: 1 week ago

Question

★★★★★

What is to be achieved for the individual is based on the companys needs.

Answered: 1 week ago

Question

★★★★★

Answered: 1 week ago

Previous Question Next Question