Answered step by step
Verified Expert Solution
Question
1 Approved Answer
On January 3.2021, Roberts Company purchased 30% of the 100.000 shares of common stock of Thomas Corporation, paying $1.500,000. There was no goodwill or other
On January 3.2021, Roberts Company purchased 30% of the 100.000 shares of common stock of Thomas Corporation, paying $1.500,000. There was no goodwill or other cost allocation associated with the investment. Roberts has significant influence over Thomas. During 2021, Thomas reported net income of $300.000 and paid dividends of $100,000. On January 4, 2022, Roberts sold 15,000 shares for $800,000. What is the appropriate journal entry to record the sale of the 15,000 shares? 800,000 800,000 800,000 780,000 20,000 800,000 12,000 A) Cash Investment in Thomas B) Cash Investment in Thomas Gain on sale of investment C) Cash Loss on investment Investment in Thomas D) Cash Investment in Thomas Gain on sale of investment E) Cash Loss on sale of investment Investment in Thomas 812,000 800,000 790,000 10,000 800,000 15,000 815,000 Multiple Choice A Above. Multiple Choice A Above. B Above. D Above E Above. O C Above
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started