On January 2, 2018, Baltimore Company purchased 8,000 shares of the stock of Towson Company at...
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 to $21 per share at the end of the year. Use this information to determine, how much Baltimore Company should report for its investment in Towson Company on December 31, 2018. (Round to the nearest dollar.)
Hint: Adjust shares to fair market value based on information given at year end.
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On January 2, 2018, Baltimore Company purchased 8,000
shares of the stock of Towson Company at...
On January 2, 2018, Baltimore Company purchased 20,000 shares of the stock of Towson Company at...
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...
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...
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...
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...
Question 29 (3.5 points) On March 1, 2019, Annapolis Company has a beginning Work in Process inventory of zero. All materials are added into production at the beginning of its production. There is on...
Question 29 (3.5 points) On March 1, 2019, Annapolis Company has a beginning Work in Process inventory of zero. All materials are added into production at the beginning of its production. There is only one production WIP inventory. During the month 38,000 units were started. At the end of the month all started units were 70% complete with respect to conversion. Direct Materials placed into production had a total cost of $485,000 and the total conversion cost for the month...
On January 2, 2018, All Good Company purchased 7,000 shares of the stock of Big Bad...
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...
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 2, 2019, All Good Company purchased 7,000 shares of the stock of Big Bad...
On January 2, 2019, All Good Company purchased 7,000 shares of the stock of Big Bad Company, and DID NOT obtain significant influence. The investment is intended as a long-term investment. The stock was purchased for $11 per share, and represents a 10% ownership stake. Big Bad Company made $375,000 of net income in 2019, and paid dividends to All Good Company of $7,500 on December 15, 2019. On December 31, 2019, Big Bad Company's stock was trading on the open market for...
On January 2, 2019, All Good Company purchased 9,000 shares of the stock of Big Bad...
On January 2, 2019, All Good Company purchased 9,000 shares of the stock of Big Bad Company, and DID NOT obtain significant influence. The investment is intended as a long-term investment. The stock was purchased for $17 per share, and represents a 10% ownership stake. Big Bad Company made $475,000 of net income in 2019, and paid dividends to All Good Company of $10,000 on December 15, 2019. On December 31, 2019, Big Bad Company's stock was trading on the...
On July 1, 2018 Tam Company purchased 3,000 shares of Del Company capital stock as a...
On July 1, 2018 Tam Company purchased 3,000 shares of Del Company capital stock as a temporary Investment (trading Securities at $66.50 per share plus a commission of $30. On July 15, a 5 per cent stock dividend was received. Tam received a cash dividend of $0.50 per share on August 12, 2018. On November 1, Tam sold all of the shares for $72.20 per share, less a commission of $30. Prepare entries to record all of these transactions in...
Question 29 (3.5 points) On March 1, 2019, Annapolis Company has a beginning Work in Process inventory of zero. All materials are added into production at the beginning of its production. There is only one production WIP inventory. During the month 38,000 units were started. At the end of the month all started units were 70% complete with respect to conversion. Direct Materials placed into production had a total cost of $485,000 and the total conversion cost for the month...
On July 1, 2018 Tam Company purchased 3,000 shares of Del Company capital stock as a temporary Investment (trading Securities at $66.50 per share plus a commission of $30. On July 15, a 5 per cent stock dividend was received. Tam received a cash dividend of $0.50 per share on August 12, 2018. On November 1, Tam sold all of the shares for $72.20 per share, less a commission of $30. Prepare entries to record all of these transactions in...
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