On January 2, 2020, SF purchased 15% of LA's common stock for $50,000 and classified its...
On January 2, 2020, SF purchased 15% of LA's common stock for $50,000 and classified its investment in LA as trading securities. LA's net income for the year ended 12/31/2020 was $100,000. During 2020, LA declared and paid a total dividend of $30,000. On 12/31/2020, the fair value of the LA stock owned by SF increased to $70,000. How much should SF show dividend income (or dividend revenue) from its investment in LA in its income statement for the year ended 12/31/2020?
Homework Answers
ANSWER DIVIDEND INCOME = $30,000 * 15% = $4,500
THE DIVIDEND INCOME RECEIVED BY SF, FROM LA IN YEAR 2020 SHOULD BE RECORDED IN AN INCOME STATEMENT OF SF AS DIVIDEND INCOME FROM INVESTMENT IN LA'S COMMON STOCK.
Add Answer to:
On January 2, 2020, SF purchased 15% of LA's common stock for
$50,000 and classified its...
On 1/1/2020, SF acquired 25% of the outstanding common stock of LA, by purchasing 5,000 shares...
On 1/1/2020, SF acquired 25% of the outstanding common stock of LA, by purchasing 5,000 shares of the outstanding common stock of LA at a cost of $100,000. SF paid cash for the investment in LA on 1/1/2020. LA had a total of 20,000 shares of outstanding common stock. The total fair value of the 20,000 shares of LA's common stock on 1/1/2020, was $400,000. The total fair value of the 20,000 shares of LA's common stock on 12/31/2020 is...
On February 5, 2020, Apple Inc. purchased 12% of Pear Inc.’s common stock for $50,000. Pear’s...
On February 5, 2020, Apple Inc. purchased 12% of Pear Inc.’s common stock for $50,000. Pear’s net income for the years ended December 31, 2020, and December 31, 2021, were $10,000 and $50,000, respectively. Pear did not pay any dividends in 2020. Pear declared and paid a dividend of $60,000 to all its shareholders in 2021. The fair value of the Pear stock owned by Apple Inc. is valued at $70,000 and $130,000 on December 31, 2020 and December 31,...
On February 5, 2020, Apple Inc. purchased 12% of Pear Inc.’s common stock for $50,000. Pear’s...
On February 5, 2020, Apple Inc. purchased 12% of Pear Inc.’s common stock for $50,000. Pear’s net income for the years ended December 31, 2020, and December 31, 2021, were $10,000 and $50,000, respectively. Pear did not pay any dividends in 2020. Pear declared and paid a dividend of $60,000 to all its shareholders in 2021. The fair value of the Pear stock owned by Apple Inc. is valued at $70,000 and $130,000 on December 31, 2020 and December 31,...
On February 5, 2020, Apple Inc. purchased 12% of Pear Inc.'s common stock for $50,000. Pear's...
On February 5, 2020, Apple Inc. purchased 12% of Pear Inc.'s common stock for $50,000. Pear's net income for the years ended December 31, 2020, and December 31, 2021, were $10,000 and $50,000, respectively. Pear did not pay any dividends in 2020. Pear declared and paid a dividend of $60,000 to all its shareholders in 2021. The fair value of the Pear stock owned by Apple Inc. is valued at $70,000 and $120,000 on December 31, 2020 and December 31,...
2. On January 2, 2017, Howdy Doody Corporation purchased 12% of Ranger Corporation's common stock for...
2. On January 2, 2017, Howdy Doody Corporation purchased 12% of Ranger Corporation's common stock for $50,000. Ranger's net income for the years ended December 31, 2017 and 2018, were $10,000 and $50,000, respectively. During 2018, Ranger declared and paid a dividend of $60,000. There were no dividends in 2017. On December 31, 2017, the fair value of the Ranger stock owned by Howdy Doody had increased to $70,000. How much should Howdy Doody show in the 2018 income statement...
2. On January 2, 2017, Howdy Doody Corporation purchased 12% of Ranger Corporation's common stock for...
2. On January 2, 2017, Howdy Doody Corporation purchased 12% of Ranger Corporation's common stock for $50,000. Ranger's net income for the years ended December 31, 2017 and 2018, were $10,000 and $50,000, respectively. During 2018, Ranger declared and paid a dividend of $60,000. There were no dividends in 2017. On December 31, 2017, the fair value of the Ranger stock owned by Howdy Doody had increased to $70,000. How much should Howdy Doody show in the 2018 income statement...
On February 5, 2020. Apple Inc. purchased 12% of Pear Inc.'s common stock for $50,000
On February 5, 2020. Apple Inc. purchased 12% of Pear Inc.'s common stock for $50,000. Pear's not income for the years ended December 31, 2020, and December 31, 2021, were $10.000 and $50,000, respectively. Pear did not pay any dividends in 2020. Pear declared and paid a dividend of S60,000 to all its shareholders in 2021. The fair value of the Pear stock owned by Apple Inc. is valued at $70.000 and $120.000 on December 31, 2020 and December 31,...
On January 2, 2020, Howdy Doody Corporation purchased 18% of Ranger Corporation's common stock for $52.000....
On January 2, 2020, Howdy Doody Corporation purchased 18% of Ranger Corporation's common stock for $52.000. Ranger's net income for the years ended December 31, 2020, and December 31, 2021, were $14,000 and $52,000, respectively. During 2020, Ranger declared and paid a dividend of $66,500. On December 31, 2020, the fair value of the Ranger stock owned by Howdy Doody had increased to $71.000. How much should Howdy Doody show in the 2020 Income statement as income from this investment?...
Winston Corporation purchased 40 percent of the stock of Fullbright Company on January 1, 20X2, at...
Winston Corporation purchased 40 percent of the stock of Fullbright Company on January 1, 20X2, at underlying book value. During the period of January 1, 20X2, through December 31, 20X4, the market value of Winston's investment in Fullbright's stock increased by $20,000 each year. The companies reported the following operating results and dividend payments during the first three years of intercorporate ownership: Winston Corporation Fullbright Company Year Operating Income Dividends Net Income Dividends 20X2 $ 100,000 $ 40,000 $ 70,000...
On January 1, 2020, Case Corporation purchased 3,000 of the 10,000 outstanding shares of common stock...
On January 1, 2020, Case Corporation purchased 3,000 of the 10,000 outstanding shares of common stock of Dow Corporation for $28,000 cash. At that date, Dow's balance sheet reflected the following book values. Assets not subject to depreciation . Assets subject to depreciation .. Liabilities. ........ Common stock (par $4) ........ Retained earnings, $10,000..... $25,000* 30,000** 5,000* 40,000 10,000 * Same as fair value. ** Fair value $38,000; the assets have a 10-year remaining useful life (straight-line depreciation). Dow Corporation...
On February 5, 2020, Apple Inc. purchased 12% of Pear Inc.'s common stock for $50,000. Pear's net income for the years ended December 31, 2020, and December 31, 2021, were $10,000 and $50,000, respectively. Pear did not pay any dividends in 2020. Pear declared and paid a dividend of $60,000 to all its shareholders in 2021. The fair value of the Pear stock owned by Apple Inc. is valued at $70,000 and $120,000 on December 31, 2020 and December 31,...
2. On January 2, 2017, Howdy Doody Corporation purchased 12% of Ranger Corporation's common stock for $50,000. Ranger's net income for the years ended December 31, 2017 and 2018, were $10,000 and $50,000, respectively. During 2018, Ranger declared and paid a dividend of $60,000. There were no dividends in 2017. On December 31, 2017, the fair value of the Ranger stock owned by Howdy Doody had increased to $70,000. How much should Howdy Doody show in the 2018 income statement...
2. On January 2, 2017, Howdy Doody Corporation purchased 12% of Ranger Corporation's common stock for $50,000. Ranger's net income for the years ended December 31, 2017 and 2018, were $10,000 and $50,000, respectively. During 2018, Ranger declared and paid a dividend of $60,000. There were no dividends in 2017. On December 31, 2017, the fair value of the Ranger stock owned by Howdy Doody had increased to $70,000. How much should Howdy Doody show in the 2018 income statement...
On January 2, 2020, Howdy Doody Corporation purchased 18% of Ranger Corporation's common stock for $52.000. Ranger's net income for the years ended December 31, 2020, and December 31, 2021, were $14,000 and $52,000, respectively. During 2020, Ranger declared and paid a dividend of $66,500. On December 31, 2020, the fair value of the Ranger stock owned by Howdy Doody had increased to $71.000. How much should Howdy Doody show in the 2020 Income statement as income from this investment?...
On January 1, 2020, Case Corporation purchased 3,000 of the 10,000 outstanding shares of common stock of Dow Corporation for $28,000 cash. At that date, Dow's balance sheet reflected the following book values. Assets not subject to depreciation . Assets subject to depreciation .. Liabilities. ........ Common stock (par $4) ........ Retained earnings, $10,000..... $25,000* 30,000** 5,000* 40,000 10,000 * Same as fair value. ** Fair value $38,000; the assets have a 10-year remaining useful life (straight-line depreciation). Dow Corporation...
Most questions answered within 3 hours.
-
You are attempting to calculate a firm’s free cash flow to
equity. You know the following...
asked 37 minutes ago -
the following reaction occurs in a balloon containing
N2O2 gas
N2O4(g)=2NO2(g)
will the volume of the...
asked 1 hour ago -
answer the questions throughout this program
public class Day implements Comparable {
Private Boolean atWork;...
asked 1 hour ago -
This is C++ code for parking fee management program
#include <iostream>
#include <iomanip>
using namespace std;...
asked 1 hour ago -
The free energy change for the following reaction at 25 °C, when
[Sn2+] = 1.17 M...
asked 3 hours ago -
An MNE is this kind of industry when competition in one country
is essentially independent of...
asked 4 hours ago -
. For this set of questions, determine what
proportion of a normal distribution is located betweeneach...
asked 5 hours ago -
A college student is employed as a door-to-door newspaper
salesman. Historical data suggests that the student...
asked 6 hours ago -
MATLAB HW 11 problem using Switch Case and Input commands
Write a script file that calculates...
asked 6 hours ago -
Considering gravitational time dilation, calculate the time that
passes in Earth’s surface while 1 hour passes...
asked 6 hours ago -
Minitab Problem: Take the Lake Hume June rainfall data and find
use the processes outlined in...
asked 7 hours ago -
X Company is trying to decide whether to continue using old
equipment to make Product A...
asked 7 hours ago