Question
XYZ Corp purchased 1,000 shares of ABC, Inc. common stock for $50 per share on February 12, 2020. ABC, Inc. has 1,000,000 shares issued and
XYZ Corp purchased 1,000 shares of ABC, Inc. common stock for $50 per share on February 12, 2020. ABC, Inc. has 1,000,000 shares issued and outstanding. ABC, Inc. paid a dividend of $1.00 per common stock share on October 15, 2020. The fair value of ABC, Inc. common stock on December 31, 2020 is $61.00/share.
How much will these transactions change XYZ Corps Net Income for 2020 (ignore income taxes)?
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Auditing A Practical Manual For Auditors
Authors: Lawrence Robert Dicksee
1st Edition
1360462546, 978-1360462547
