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

Question

1 Approved Answer

Harrison Company owns 20,000 of the 50,000 outstanding shares of Taylor, Inc. common stock. During 2013, Taylor earns $100,000 and pays cash dividends of $800,000.

Harrison Company owns 20,000 of the 50,000 outstanding shares of Taylor, Inc. common stock. During 2013, Taylor earns $100,000 and pays cash dividends of $800,000. If the beginning balance in the investment account was $625,000, the balance at December 31, 2013, should be and Harrison should report investment revenue for 2013 of what amount?

Step by Step Solution

★★★★★

3.49 Rating (159 Votes )

There are 3 Steps involved in it

Step: 1

Solution According to equity method As Harison owns ... 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

Step: 3

blur-text-image

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

South Western Federal Taxation 2018 Essentials Of Taxation Individuals And Business Entities

South Western Federal Taxation 2018 Essentials Of Taxation Individuals And Business Entities

Authors: William A. Raabe, James C. Young, Annette Nellen, David M. Maloney

21st Edition

978-0357109175, 978-1337386173

More Books

Students also viewed these Accounting questions

Question

★★★★★
If the beginning balance in Swan, Inc.'s OAA is $6,700 and the following transactions occur, what is Swan's ending OAA balance? Depreciation recapture income ................................ $ 21,600...

Answered: 1 week ago

Question

★★★★★
Equity Investment Brown Corporation earns $720,000 and pays cash dividends of $240,000 during 2018. Dexter Corporation owns 3,000 of the 10,000 outstanding shares of Brown. Required: a. What...

Answered: 1 week ago

Question

★★★★★
Brown Corporation earns $480,000 net income and pays cash dividends of $160,000 during 2014. Dexter Corporation owns 2,000 of the 10,000 outstanding shares of Brown and uses the Equity method How...

Answered: 1 week ago

Question

★★★★★
A new out-of-state client, Robert Ball, has asked you to prepare a Form 709 for a large gift he made in 2013. When you request copies of any prior gift tax returns he may have filed, he responds,...

Answered: 1 week ago

Question

★★★★★
Suppose that f : R2 R is Cp on βr(x0, y0) for some r > 0. Prove that, given (x, y) Br(x0, y0), there is a point (c, d) on the line segment between (x0, y0) and (x, y) such that p-1

Answered: 1 week ago

Question

★★★★★
(a) Write a reaction involving a lithium enolate for introduction of the methyl group in the following compound (an intermediate in a synthesis by E. J. Corey of cafestol, an anti-inflammatory agent...

Answered: 1 week ago

Question

★★★★★
Select two qualitative studies from the literature. Compare the authors handling of the following dimensions: a. Motivation for conducting the research b. Data collection strategies c. Credibility...

Answered: 1 week ago

Question

★★★★★
As immigrants continue to come to the United States from many different cultures and religions, differences will cause some challenges and problems. One area where this has occurred is with Islamic...

Answered: 1 week ago

Question

★★★★★
Assuming the use of a two-column (all-purpose) general journal, a revenue journal, and a cash receipts journal, indicate the journal in which each of the transactions should be recorded: a. Closing...

Answered: 1 week ago

Question

★★★★★
The most probable velocity ump is the velocity possessed by the greatest number of gas particles. At a certain temperature, the probability that a gas particle has the most probable velocity is equal...

Answered: 1 week ago

Question

★★★★★
On January 1, 2018, Morey, Inc., exchanged $180,025 for 25 percent of Amsterdam Corporation. Morey appropriately applied the equity method to this investment. At January 1, the book values of...

Answered: 1 week ago

Question

★★★★★
Select an existing organization preferably, a manufacturer, and develop improvement plan of operations keeping in view the following steps. 1. Do process mapping (time functions mapping and value...

Answered: 1 week ago

Question

★★★★★
Jim Cash sat in a seat six rows behind the dugout at a Maine Bears baseball game. Between the third and fourth innings, Sluggerr, the team mascot, performed the "Hot Dog Launch," a promotional event...

Answered: 1 week ago

Question

★★★★★
Operations Management and Supply Chain Management have been discussed in the media, in politics, and of course in business. Please research and report on one current (2020 and after) news item in the...

Answered: 1 week ago

Question

★★★★★
It is the first time he has climbed on-board an international vessel with Mr. Dela Cruz. He summed up all his expenses in training, medical examination, and other short-term courses to be part of the...

Answered: 1 week ago

Question

★★★★★
ANN LYMAN'S PROPOSAL Ann Lyman was recently hired by the Challenge Products Corp (CPC) as a senior marketing executive for the electronic houseware division. Her previous experience at Pearces, a...

Answered: 1 week ago

Question

★★★★★
QUESTION 3 3.1. What is the purpose of a project execution plan. (3) 3.2. Can a project start without a project execution plan? (2) 3.3. How do changes in the work breakdown structure impact a...

Answered: 1 week ago

Question

★★★★★
Cobb Manufacturing Company uses a process cost system and average costing. The following production data is for the month of June 2011. Production Costs Work in process, beginning of the month:...

Answered: 1 week ago

Question

★★★★★
Shomit purchases 100 shares of stock in Classy Corporation for $500 in year 1. On December 20 of year 2, he purchases an additional 100 shares in the company for $400. On December 27 of year 2,...

Answered: 1 week ago

Question

★★★★★
Kenny Merinoff and his son, John, own all outstanding stock of Flamingo Corporation. Both John and Kenny are officers in the corporation and, together with their uncle, Ira, comprise the entire board...

Answered: 1 week ago

Question

★★★★★
Hyacinth, Inc., is a dealer in securities. The firm has spotted a fast-rising company and would like to buy and hold its stock for investment. The stock is currently selling for $2 per share, and...

Answered: 1 week ago

Question

★★★★★
A weightlifter stands up at constant speed from a squatting position while holding a heavy barbell across his shoulders? a. Draw an interaction diagram. b. Identify the system on your interaction...

Answered: 1 week ago

Question

★★★★★
An 80 kg spacewalking astronaut pushes off a 640 kg satellite, exerting a 100 N force for the 0.50 s it takes him to straighten his arms. How far apart are the astronaut and the satellite after 1.0...

Answered: 1 week ago

Question

★★★★★
a. How much force does an 80 kg astronaut exert on his chair while sitting at rest on the launch pad? b. How much force does the astronaut exert on his chair while accelerating straight up at 10 m/s...

Answered: 1 week ago

Previous Question Next Question