Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Based on the following data: 1. Gottsbucks paid $500,000 to buy 10,000 shares of Selfie Stick , on January 2, 2018. 2. Selfie Stick declared

Based on the following data:

1. Gottsbucks paid $500,000 to buy 10,000 shares of Selfie Stick, on January 2, 2018.

2. Selfie Stick declared and paid a $1 per share cash dividend on December 15, 2018.

3. Selfie Stick reported Net Income of $600,000 for the year ended December 31, 2018.

4. The fair (market) value of Selfie Stick stock was $55 per share (total value of 10,000 shares is $550,000) on December 31, 2018.

What total dollar amount of revenues will Gottsbucks show on its Income Statement for 2018 related to the Selfie Stick stock, if it owns 10% of the stock of Selfie Stick, and the shares are treated as an Available-for-Sale Security?

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

More Books

Students also viewed these Accounting questions