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At the beginning of the year, Goldman Company purchased 10,000 of the 40,000 shares of common...
On January 2, 2018, Baltimore Company purchased 8,000 shares of the stock of Towson Company at $15 per share. Baltimore did NOT obtain significant influence as the purchase represents a 5% ownership stake in Towson Company. On August 1, 2018, Towson Company paid cash dividends of $27,000. Baltimore Company intended this investment to a long-term investment. On December 31, 2018, Towson Company reported $65,000 of net income for FY 2018. Additionally, the current market price for Towson Company's stock increased...
On January 2, 2018, Baltimore Company purchased 20,000 shares of the stock of Towson Company at $12 per share. Baltimore obtained significant influence as the purchase represents a 35% ownership stake in Towson Company. On August 1, 2018, Towson Company paid cash dividends of $27,000. Baltimore Company intended this investment to a long-term investment. On December 31, 2018, Towson Company reported $50,000 of net income for FY 2018. Additionally, the current market price for Towson Company's stock increased to $18...
On January 2, 2018, Baltimore Company purchased 5,000 shares of the stock of Towson Company at $12 per share. Baltimore did NOT obtain significant influence as the purchase represents a 5% ownership stake in Towson Company. On August 1, 2018, Towson Company paid cash dividends of $27,000. Baltimore Company intended this investment to a long-term investment. On December 31, 2018, Towson Company reported $55,000 of net income for FY 2018. Additionally, the current market price for Towson Company's stock increased...
On January 2, 2018, Baltimore Company purchased 5,000 shares of the stock of Towson Company at $11 per share. Baltimore did NOT obtain significant influence as the purchase represents a 15% ownership stake in Towson Company. On August 1, 2018, Towson Company paid cash dividends of $25,000. Baltimore Company intended this investment to a long-term investment. On December 31, 2018, Towson Company reported $70,000 of net income for FY 2018. Additionally, the current market price for Towson Company's stock increased...
On January 2, 2018, Baltimore Company purchased 16,000 shares of the stock of Towson Company at $12 per share. Baltimore obtained significant influence as the purchase represents a 40% ownership stake in Towson Company. On August 1, 2018, Towson Company paid cash dividends of $25,000. Baltimore Company intended this investment to a long-term investment. On December 31, 2018, Towson Company reported $55,000 of net income for FY 2018. Additionally, the current market price for Towson Company's stock increased to $19...
On January 1, 2018, Wyatt Company purchased $200,000 of available for sale bonds with a stated interest rate of 6%, for a term of six years. The bonds cost a total of $210,000 with a market interest rate of 4 %. Interest is paid annually on December 31. On December 31, the bonds had a fair value of $190,000. Record the investment, receipt of interest, and the year-end adjustment.
On January 2, 2018, All Good Company purchased 7,000 shares of the stock of Big Bad Company, and DID obtain significant influence. The investment is intended as a long-term investment. The stock was purchased for $15 per share, and represents a 30% ownership stake. Big Bad Company made $300,000 of net income in 2018, and paid dividends to All Good Company of $35,000 on December 15, 2018. Big Bad Company's stock was trading on the open market for $18 per share at the...
On January 2, 2018, All Good Company purchased 5,000 shares of the stock of Big Bad Company, and DID obtain significant influence. The investment is intended as a long-term investment. The stock was purchased for $13 per share, and represents a 30% ownership stake. Big Bad Company made $350,000 of net income in 2018, and paid dividends to All Good Company of $35,000 on December 15, 2018. Big Bad Company's stock was trading on the open market for $14 per...
On January 1, 2019, Pearl Corporation purchased 30,000 of the 75,000 outstanding common shares of M. Krab Corporation for $24 per share cash. During the year, M. Krab Corporation paid $1.50 per share cash dividends and reported $880,000 of net income. At the end of 2019, the M. Krab Corporation common stock is selling at $29 per share. Pearl Corporation must use the equity method to account for this investment. Why? We were unable to transcribe this imageOn January 1,...
On January 2, Year 1, Barber Company purchased 5,000 shares of Convell Company for $60,500. Convell Company has a total of 25,000 shares of common stock outstanding and it is presumed the Barber Company will have a significant influence over Convell. During each of the next two years, Convell declared and paid cash dividends of $0.85 per share, and its net income was $72,000 and $67,000 for Year 1 and Year 2, respectively. What is the book value of Barber’s...