Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On January 1 , 2 0 2 2 , Halstead, Incorporated, purchased 7 9 , 0 0 0 shares of Sedgwick Company common stock for

On January 1,2022, Halstead, Incorporated, purchased 79,000 shares of Sedgwick Company common stock for
$1,402,000, giving Halstead 25 percent ownership and the ability to apply significant Influence over Sedgwick. Any
excess of cost over book value acquired was attributed solely to goodwill.
Sedgwick reports net income and dividends as follows. These amounts are assumed to have occurred evenly
throughout these years. Dividends are declared and pald in the same perlod.
On July 1,2024, Halstead sells 12,640 shares of this investment for $28 per share, thus reducing its interest from 25 to
21 percent, but maintaining its significant Influence.
Required:
Determine the amounts that would appear on Halstead's 2024 income statement relating to its ownership and partlal
sale of its investment in Sedgwick's common stock.
Answer is not complete.Please and thank you. The answer to th blank part is not 129,560
image text in transcribed

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

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

Business Accounting

Authors: Frank Wood, Alan Sangster

7th Edition

0273619829, 9780273619826

More Books

Students also viewed these Accounting questions

Question

What is the general process for selecting expatriates?

Answered: 1 week ago