ZuoTi.Pro
Question

On January 1, Belleville Company paid $1,970,000 to acquire 98,500 shares of O'Fallon’s voting common stock,...

On January 1, Belleville Company paid $1,970,000 to acquire 98,500 shares of O'Fallon’s voting common stock, which represents a 40 percent investment. No allocations to goodwill or other specific accounts were made. Significant influence over O'Fallon is achieved by this acquisition, and so Belleville applies the equity method. O'Fallon declared a $2 per share dividend during the year and reported net income of $598,000. What is the balance in the Investment in O'Fallon account found in Belleville’s financial records as of December 31?

Multiple Choice

  • $2,132,200.

  • $2,012,200.

  • $2,072,200.

  • $2,209,200.

business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Calculate ending balance

Initial investment 1970000
Net income (598000*40%) 239200
Dividend (98500*2) -197000
Ending balance 2012200

So answer is b) $2012200

3 0
Add a comment
Know the answer?
Add Answer to:
On January 1, Belleville Company paid $1,970,000 to acquire 98,500 shares of O'Fallon’s voting common stock,...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • On January 1, Belleville Company paid $2,760,000to acquire 69,000 shares of O'Fallon's voting common stock, which...

    On January 1, Belleville Company paid $2,760,000to acquire 69,000 shares of O'Fallon's voting common stock, which represents a 40% investment. No allocations to goodwill or other specific accounts were made. Significant influence over O'Fallon is achieved by this acquisition, and so Bellville applies the equity method. O'Fallon declared a $1 per share dividend during the year and reported net income of $596,000. What is the balance in the investment in O'Fallon account found in Bellvile's financial records as of December...

  • On January 1, Puckett Company paid $2.04 million for 68,000 shares of Harrison's voting common stock,...

    On January 1, Puckett Company paid $2.04 million for 68,000 shares of Harrison's voting common stock, which represents a 40 percent investment. No allocation to goodwill or other specific account was made. Significant influence over Harrison is achieved by this acquisition and so Puckett applies the equity method. Harrison distributed a dividend of $2 per share during the year and reported net income of $627,000. What is the balance in the Investment in Harrison account found in Puckett's financial records...

  • JJU Total points awarded He Problem 1-6 (LO 1-3) On January 1, Puckett Company paid $1.30...

    JJU Total points awarded He Problem 1-6 (LO 1-3) On January 1, Puckett Company paid $1.30 million for 52,000 shares of Harrison's voting common stock, which represents a 40 percent investment. No allocation to goodwill or other specific account was made. Significant influence over Harrison is achieved by this acquisition and so Puckett applies the equity method. Harrison distributed a dividend of $3 per share during the year and reported net income of $561,000. What is the balance in the...

  • 6 and 7 show solution losses. 1. Puckett Company paid $1.6 million for 50.000 shares of...

    6 and 7 show solution losses. 1. Puckett Company paid $1.6 million for 50.000 shares of Harrison's voting con which represents a 40 percent investment. No allocation to goodwill or other specific accoun stock, which represents a 40 percent inve was made. Signific de. Significant influence over Harrison is achieved by this acquisition and so Puckett applies the equity method. Harrison declared a Spe hod. Harrison declared a $2 per share dividend during the year and reported net income of...

  • On January 1, 2019, Lion Company paid $960,000 for 16,000 shares of Wolf Company's voting common...

    On January 1, 2019, Lion Company paid $960,000 for 16,000 shares of Wolf Company's voting common stock, which was a 10% interest in Wolf. Lion does not have the ability to exercise significant influence over the operating and financial policies of Wolf. Lion received dividends of $1.00 per share from Wolf on October 2, 2019. Wolf reported net income of $450,000 for the year ended December 31, 2019, and the ending market price of its shares was $64. On July...

  • On January 2, 2018, Smith Company paid $252,000 to acquire 10,000 shares of Pets Corp. The...

    On January 2, 2018, Smith Company paid $252,000 to acquire 10,000 shares of Pets Corp. The investment represented 25% of the total shares outstanding of Pets Corp. and gave Smith Company the ability to exert significant influence upon the operations of Pets Corp. During the year ended December 31, 2018, Pets Corp. paid dividends of $1.75 per share (declared and paid on November 12, 2018) and reported income of $259,000. The market value of Pets Corp. stock at December 31,...

  • On January 2, 2018, Johnson Company paid $262,000 to acquire 12,000 shares of Pets Corp. The...

    On January 2, 2018, Johnson Company paid $262,000 to acquire 12,000 shares of Pets Corp. The investment represented 25% of the total shares outstanding of Pets Corp. and gave Johnson Company the ability to exert significant influence upon the operations of Pets Corp. During the year ended December 31, 2018, Pets Corp. paid dividends of $1.75 per share (declared and paid on November 12, 2018) and reported income of $269,000. The market value of Pets Corp. stock at December 31,...

  • On January 2, 2018, Johnson Company paid $262,000 to acquire 12,000 shares of Pets Corp. The...

    On January 2, 2018, Johnson Company paid $262,000 to acquire 12,000 shares of Pets Corp. The investment represented 25% of the total shares outstanding of Pets Corp. and gave Johnson Company the ability to exert significant influence upon the operations of Pets Corp. During the year ended December 31, 2018, Pets Corp. paid dividends of $1.75 per share (declared and paid on November 12, 2018) and reported income of $269,000. The market value of Pets Corp. stock at December 31,...

  • Multiple Choice Questions 1. Gaw Company owns 15% of the common stock of Trace Corporation and...

    Multiple Choice Questions 1. Gaw Company owns 15% of the common stock of Trace Corporation and used the fair-value method to account for this investment. Trace reported net income of $110,000 for 2008 and paid dividends of $60,000 on October 1, 2008. How much income should Gaw recognize on this investment in 2008? A. $16,500 Noinfluence B.$9,000 C. $25,500 (If company makes a loss or Profit doesn't D. $7,500 E. $50,000 60,000 X 15.. 2. Yaro Company owns 30% of...

  • Zwick Company bought 25,500 shares of the voting common stock of Handy Corporation in January 2021....

    Zwick Company bought 25,500 shares of the voting common stock of Handy Corporation in January 2021. In December, Handy announced $203.700 net income for 2021 and declared and paid a cash dividend of $3.00 per share on all 202,000 shares of its outstanding common stock. Zwick Company's dividend revenue from Handy Corporation in December 2021 would be: Multiple Choice None of these answer choices are correct $76,500 $0 $25 715

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT