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please help me i dont understand. the questions are trickey with wording On January 1, 2019. Rex Corporation purchased 30,000 shares ( 30% of the
please help me i dont understand. the questions are trickey with wording
On January 1, 2019. Rex Corporation purchased 30,000 shares ( 30% of the outstanding stock) of Alamo Corporation for $500,000. Net income reported by Alamo for 2019 was $180,000. Dividends paid by Alamo during 2019 were $60,000. On December 31, 2019 the Alamo Corporation stock was trading at $18 per share. After all necessary adjusting entries are made for the year, the balance in Rex Corporation's Long-Term Investment account for its investment in Alamo Corporation will be: Answer: $ Question 30 On April 1, 2020 Everjoy Company purchased $80,000 of Miller Corporation's 6% bonds at a purchase price of 96 . At the time of purchase the market rate of interest was 8%. Everjoy Company, whose year end is December 31 , expects to hold the bonds until their maturity date 5 years from the date of purchase. Interest on the bonds will be paid every April 1 and October 1 until maturity. What is the carrying value (amortized cost) of the bond that Everjoy Company would report on October 1, 2020? Answer: $ Step by Step Solution
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