Question
TNT HAS THE FOLLOWING DATA REGARDING AN INVESTMENT: PER SHARE SHARES PURCHASED AT 1/01/18 760,000 OWNERSHIP PERCENTAGE IN INVESTEE 19.00% PURCHASE PRICE 972,800 1.28 2018
| TNT HAS THE FOLLOWING DATA REGARDING AN INVESTMENT: | |||
| PER SHARE | |||
| SHARES PURCHASED AT 1/01/18 | 760,000 | ||
| OWNERSHIP PERCENTAGE IN INVESTEE | 19.00% | ||
| PURCHASE PRICE | 972,800 | 1.28 | |
| 2018 INVESTEE NET INCOME | 720,000 | 0.18 | |
| 2018 DIVIDEND/SHARE | 0.04 | 0.04 | 1 TIME DIV) |
| FMV/SHARE AT 12/31/2018 | 1.55 | ||
| SALES PRICE/SHARE AT 01/15/2019 | 1.68 | ||
REQUIRED 1: WHAT IS TNT'S TOTAL UNREALIZED GAIN RECORDED ON 12/31/18 ASSUMING INVESTMENT ACCOUNTED FOR AS A TRADING SECURITY?
REQUIRED 2: WHAT IS TNT'S TOTAL REALIZED GAIN RECORDED ON 01/15/19 ASSUMING INVESTMENT ACCOUNTED FOR AS A TRADING SECURITY?
REQUIRED 3: WHAT IS TNT'S CARRYING AMOUNT OF THE INVESTMENT AT 12/31/18 ASSUMING INVESTMENT ACCOUNTED FOR UNDER THE EQUITY METHOD?
REQUIRED 4: WHAT IS TNT'S TOTAL REALIZED GAIN ON SALE AT 1/15/19 ASSUMING INVESTMENT ACCOUNTED FOR UNDER THE EQUITY METHOD?
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Financial Accounting an introduction to concepts, methods and uses
Authors: Clyde P. Stickney, Roman L. Weil, Katherine Schipper, Jennifer Francis
13th Edition
978-0538776080, 324651147, 538776080, 9780324651140, 978-0324789003
