Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

can someone please assist with the three questions below. Thank you yean the ihanial ins ents svch as 38. Posthom Corporation acquired 20,000 of the

can someone please assist with the three questions below.
Thank you image text in transcribed
image text in transcribed
image text in transcribed
yean the ihanial ins ents svch as 38. Posthom Corporation acquired 20,000 of the 100,000 outstanding common shares of Stamp P. S8-59) Company on January 1, 2010, for a cash consideration of $200,000. During 2010, Stamp Company had net income of $120,000 and paid dividends of $80,000. At the end of 2010, shares of Stamp Company were trading for $11 each. If Posthom Corporation accounts for its investment in Stamp Company at fair value through profit or loss, what entry will the company make to record the dividends received from Stamp Company for 2010? $16,000 A. Cash Dividend Income $16,000 B. Cash $16,000 Investment in Stamp Company $16,000 c. Investment in Stamp Company Dividend Income $16,000 $16,000 D. No entry required. 39. Posthorn Corporation acquired 20,000 of the 100,000 outstanding common shares of Stamp (p. 58-59) Company on January 1, 2010, for a cash consideration of $200,000. During 2010, Stamp Company had net income of $120,000 and paid dividends of $80,000. At the end of 2010, shares of Stamp Company were trading for $11 each. If Posthorn Corporation accounts for its investment in Stamp Company at fair value through profit or loss, what entry will the company make to record the revaluation of the investment at December 31, 2010? A. Investment in Stamp Company $20,000 Investment revaluation gain (net income) $20,000 B. Investment in Stamp Company S20,000 Investment revaluation gain (OCI) $20,000 c. Investment revaluation loss (net income)$20,000 Investment in Stamp Company $20,000 D. No entry required Blooms Level: RemembeY Posthorn Corporation acquired 20.000 of the 100.000 outstanding common shares of Stamp Company on January 1, 2010, for a cash consideration of $200,000. During 2010, Stamp Company had net income of $120,000 and paid dividends of $80,000. At the end of 2010, shares of Stamp Company were trading for $11 each. If Posthom Corporation accounts for its investment in Stamp Company at fair value through profit or loss, what will the balance in the Investment in Stamp Company be at December 31, 2010? A. $200,000. B. $208,000. C. $220,000. D. $240,000. Binnme l unt

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

Financial Intelligence For Entrepreneurs What You Really Need To Know About The Numbers

Authors: Karen Berman, Joe Knight

1st Edition

1422119157, 9781422119150

More Books

Students also viewed these Accounting questions

Question

A buffer is used to start every negative message

Answered: 1 week ago