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sergeinik [125]
2 years ago
15

On January 4, 2021, Snow Co. purchased 40,000 shares (40%) of the common stock of Walker Corp., paying $900,000. There was no go

odwill or other cost allocation associated with the investment. Snow has significant influence over Walker. During 2021, Walker reported income of $240,000 and paid dividends of $75,000. On January 2, 2022, Snow sold 5,000 shares for $125,000. What was the balance in the investment account after the shares had been sold
Business
1 answer:
telo118 [61]2 years ago
4 0

The balance in an investment account after shares are sold is $845,250.

<h3>What is an investment?</h3>

An investment is the acquisition of shares owned by a parent company in a subsidiary company.

Given values for step 1:

Cost of shares : $900,000

Share in profit of Company W: $ 96,000 ($240,000 X 40%)

Share in dividends of Company W: $ 30,000  ($75,000 X 40%)

<u>Step-1</u> Computation of investment value of Company S :

\rm\ Investment \rm\ income \rm\ of \rm\ Company \rm\ S =\rm\ Cost \rm\ of \rm\ shares+ \rm\ Share \rm\ in \rm\ profits - \rm\ Share \rm\ in \rm\ Dividends\\\rm\ Investment \rm\ income \rm\ of \rm\ Company \rm\ S=\$900,000+\$96,000-\$30,000\\\rm\ Investment \rm\ income \rm\ of \rm\ Company \rm\ S=\$966,000

Given values for step 2:

Number of shares sold: 5,000

Number of shares owned : 40,000

investment value (refer Step-1): $966,000

<u>Step-2</u> Computation of investment value after the sale of shares :

\rm\ Investment \rm\ value \rm\ after \rm\ sale \rm\ of \rm\ shares=\frac{\rm\ Number \rm\ of \rm\ shares \rm\ sold}{\rm\ Number \rm\ of \rm\ shares \rm\ owned } \times\ \rm\ Investment \rm\ value\\\rm\ Investment \rm\ value \rm\ after \rm\ sale \rm\ of \rm\ shares=\frac{5,000}{40,000} \times\ \$ 966,000\\\rm\ Investment \rm\ value \rm\ after \rm\ sale \rm\ of \rm\ shares=\$120,750

Given values for step 3:

Investment value of Company S:$966,000

Investment value after shares sale:$120,750

<u>Step-3 </u>Computation of balance in investment value:

\rm\ Balance \rm\ of \rm\ investment = \rm\ Investment \rm\ value \rm\ of \rm\ Company \rm\ S - \rm\ Investment \rm\ value \rm\ after \rm\ shares \rm\ sale\\\rm\ Balance \rm\ of \rm\ investment =\$966,000-\$120,750\\\rm\ Balance \rm\ of \rm\ investment=\$845,250

Therefore, after selling the shares, the amount of investment comes out to be $845,250.

Learn more about the investment balance in the related link:

brainly.com/question/14904259

#SPJ1

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stiv31 [10]

The correct match from the given image is that the first picture is the example of the sensory memory, second picture is Short-Term Memory, and third one is Long-term Memory.

<h3>What is the sensory memory?</h3>

The human body's sensory receptors receive sensory messages, which the neurological system processes. Sensory memory only stores sensory data for as long as it takes to convert it to short-term memory.

The first image is an example of sensory memory, the second is Short-Term Memory, and the third is Long-Term Memory, which is the correct match from the given image.

Therefore, the memory are of three types short-term memory, long-term memory, and sensory memory.

Learn more about the memory, refer to:

brainly.com/question/14829385

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5 0
2 years ago
Read 2 more answers
How many total absences can you have in school?
mixer [17]
Around 12 then they send a letter home
7 0
3 years ago
Read 2 more answers
The bulk of costs related to legal expenses come from: a. Photocopying b. Online research through legal subscription services c.
Setler [38]

Answer:

c. Attorney's and paralegal's time

Explanation:

Attorney's and paralegal's time is worth much more than any papper the case requires to print as they get charged above $200 dollar per hour and all the job put into writting Subpoenas, law-suit meeting with the judge, with the other lawyers, negociating and recording testimony among and other legal activities is billed and makes up for the mayority of the case legal cost

4 0
3 years ago
When will the Social Security fund dry up at its current level?
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6 0
3 years ago
Vaughn Manufacturing has 11500 shares of 5%, $100 par value, non-cumulative preferred stock and 46000 shares of $1 par value com
Oksana_A [137]

Answer:

$23,000

Explanation:

Total dividends = $138,000 (Paid in 2020)

Common stock outstanding = 46,000 shares

Preferred dividend = Number of shares × Par value × 5%

= 11,500 × $100 × 5%

= $57,500

Dividends received by common stock holders in 2020 is;

= Total dividends - Preferred dividend

= ($138,000 × 1) - ($57,500 × 2)

= $138,000 - $115,000

= $23,000

5 0
3 years ago
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