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Can someone please help me solve these in excel? THE FOLLOWING INFORMATION IS USED FOR QUESTIONS 3031. On January 1, Year 1, Test Company purchased
Can someone please help me solve these in excel?
THE FOLLOWING INFORMATION IS USED FOR QUESTIONS 3031. On January 1, Year 1, Test Company purchased 300,000 shares of A Company common stock for $20 per share. The investment represents a 25% ownership interest and gives Test Company the ability to significantly influence the investee. On the date of acquisition, the fair value of A Company's net assets exceeded the book value by $400,000. The amount is attributable to buildings with a remaining useful life of 20 years. During both Year 1 and Year 2, A Company paid dividends of $0.25 per share. A Company reported net income of $1,000,000 for the year ended December 31, Year 1 and $1,200,000 for the year ended December 31 Year 2 . The fair value of A Company's common stock was $21 per share on December 31 , Year 1 and $22 per share on December 31 , Year 2. Assume that Tests Company held no other investments during Year 1 or Year 2. Determine the amount that pretax income would increase (decrease) in Year 1 as a result of the investment. Give your answer using dollar signs and commas but not decimals (cents). Example: $12,345 or $(12,345) Selected Answer: [None Given] Correct Answer: 0 out of 3 points THE FOLLOWING INFORMATION IS USED FOR QUESTIONS 3031. On January 1, Year 1, Test Company purchased 300,000 shares of A Company common stock for $20 per share. The investment represents a 25% ownership interest and gives Test Company the ability to significantly influence the investee. On the date of acquisition, the fair value of A Company's net assets exceeded the book value by $400,000. The amount is attributable to buildings with a remaining useful life of 20 years. During both Year 1 and Year 2, A Company paid dividends of $0.25 per share. A Company reported net income of $1,000,000 for the year ended December 31, Year 1 and $1,200,000 for the year ended December 31 Year 2. The fair value of A Company's common stock was \$21 per share on December 31, Year 1 and $22 per share on December 31 , Year 2. Assume that Tests Company held no other investments during Year 1 or Year 2. Determine the amount that pretax income would increase (decrease) in Year 2 as a result of the investment. Give your answer using dollar signs and commas but not decimals (cents). Example: $12,345 or $(12,345) Selected Answer: [None Given] THE FOLLOWING INFORMATION IS USED FOR QUESTIONS 3031. On January 1, Year 1, Test Company purchased 300,000 shares of A Company common stock for $20 per share. The investment represents a 25% ownership interest and gives Test Company the ability to significantly influence the investee. On the date of acquisition, the fair value of A Company's net assets exceeded the book value by $400,000. The amount is attributable to buildings with a remaining useful life of 20 years. During both Year 1 and Year 2, A Company paid dividends of $0.25 per share. A Company reported net income of $1,000,000 for the year ended December 31, Year 1 and $1,200,000 for the year ended December 31 Year 2 . The fair value of A Company's common stock was $21 per share on December 31 , Year 1 and $22 per share on December 31 , Year 2. Assume that Tests Company held no other investments during Year 1 or Year 2. Determine the amount that pretax income would increase (decrease) in Year 1 as a result of the investment. Give your answer using dollar signs and commas but not decimals (cents). Example: $12,345 or $(12,345) Selected Answer: [None Given] Correct Answer: 0 out of 3 points THE FOLLOWING INFORMATION IS USED FOR QUESTIONS 3031. On January 1, Year 1, Test Company purchased 300,000 shares of A Company common stock for $20 per share. The investment represents a 25% ownership interest and gives Test Company the ability to significantly influence the investee. On the date of acquisition, the fair value of A Company's net assets exceeded the book value by $400,000. The amount is attributable to buildings with a remaining useful life of 20 years. During both Year 1 and Year 2, A Company paid dividends of $0.25 per share. A Company reported net income of $1,000,000 for the year ended December 31, Year 1 and $1,200,000 for the year ended December 31 Year 2. The fair value of A Company's common stock was \$21 per share on December 31, Year 1 and $22 per share on December 31 , Year 2. Assume that Tests Company held no other investments during Year 1 or Year 2. Determine the amount that pretax income would increase (decrease) in Year 2 as a result of the investment. Give your answer using dollar signs and commas but not decimals (cents). Example: $12,345 or $(12,345) Selected Answer: [None Given]Step by Step Solution
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