Question
Instrument Corporation has the following investment which was held throughout 20182019 () Fair Value Cost 12/31/18 12/31/19 Equity investment $900,000 $1,200,000 $1,140,000 What amount of
Instrument Corporation has the following investment which was held throughout 20182019 ()
Fair Value
Cost 12/31/18 12/31/19
Equity investment $900,000 $1,200,000 $1,140,000
What amount of gain or loss would Instrument Corporation report in its income statement for the year ended December 31, 2019 related to its investment?
For questions 111 113 (5 pts each for total of 15 pts) Rich, Inc. acquired 30% of Doane Corporation's voting stock on January 1, 2018 for $1,000,000. During 2018, Doane earned $400,000 and paid dividends of $250,000. Rich's 30% interest in Doane gives Rich the ability to exercise significant influence over Doane's operating and financial policies. During 2019, Doane earned $500,000 and paid cash dividends of $150,000 on April 1 and $150,000 on October 1. On July 1, 2019, Rich sold half of its stock in Doane for $660,000 cash.
111. Before income taxes, what amount should Rich include in its 2018 income statement as a result of the investment?
112. The carrying amount of this investment in Rich's December 31, 2018 balance sheet should be:
113. What should the gain be on sale of this investment in Rich's 2019 income statement?
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