29 Jun Question ACC 557 Wise Company owns 30%
Question
ACC 557
Wise Company owns 30% interest in the stock of Dark Corporation. During the year, Dark pays $20,000 in dividends to Wise, and reports $200,000 in net income. Wise Company’s investment in Dark will increase Wise’s net income by
On January 1, 2013, Audrey Corp. paid $800,000 for 100,000 shares of Off Company’s common stock, which represents 40% of Off’s outstanding common stock. Off reported net income of $200,000 and paid cash dividends of $60,000 during 2013. Audrey should report the investment in Off Company on its December 31, 2013, balance sheet at:
$856,000
$824,000
$800,000
$744,000
Corporations invest in other companies for all of the following reasons except to
generate earnings.
meet strategic goals.
increase trading of the other companies’ stock.
house excess cash until needed.
1) Dayton Corporation purchased 1,000 shares of Kart common stock at $77 per share plus $2,000 brokerage fees as a short-term investment. The shares were subsequently sold at $80 per share less $3,400 brokerage fees. The cost of the securities purchased and gain or loss on the sale were
Cost
Gain or Loss
$79,000
$2,400 loss
$77,000
$1,400 loss
$77,000
$3,000 gain
$79,000
$2,000 gain
2) The company whose stock is owned by the parent company is called the
sibling company.
controlled company.
subsidiary company.
investee company.
3) Debt investments that are held to maturity are recorded at
fair value.
maturity value.
original cost.
amortized cost.
4) The balance sheet presentation of an unrealized loss on a non-trading security is similar to the statement presentation of
discount on bonds payable.
treasury stock.
allowance for doubtful accounts.
prepaid expenses.
5) An unrealized loss on non-trading securities is
reported under Other Expenses and Losses in the income statement.
reported as a separate component of stockholders’ equity.
deducted from the cost of the investment.
Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Fill in all the assignment paper details that are required in the order form with the standard information being the page count, deadline, academic level and type of paper. It is advisable to have this information at hand so that you can quickly fill in the necessary information needed in the form for the essay writer to be immediately assigned to your writing project. Make payment for the custom essay order to enable us to assign a suitable writer to your order. Payments are made through Paypal on a secured billing page. Finally, sit back and relax.
About Writedemy
We are a professional paper writing website. If you have searched a question and bumped into our website just know you are in the right place to get help in your coursework. We offer HIGH QUALITY & PLAGIARISM FREE Papers.
How It Works
To make an Order you only need to click on “Order Now” and we will direct you to our Order Page. Fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Are there Discounts?
All new clients are eligible for 20% off in their first Order. Our payment method is safe and secure.