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Juli2301 [7.4K]
3 years ago
11

Harry Putts Productions held investments in equity securities​ (in Ellie ​Company) with a fair value of $ 60 comma 000 at Decemb

er​ 31, 2018. These investments cost Harry Putts Productions $ 57 comma 000 on January​ 1, 2018. What is the appropriate amount for Harry Putts Productions to report for these investments on the December​ 31, 2018​, balance​ sheet? (Assume that Harry Putts has insignificant influence over Ellie ​Company.).
Business
1 answer:
makkiz [27]3 years ago
6 0

Answer:

The appropriate amount for Harry Putts Productions to report for these investments on the December​ 31, 2018​, balance​ sheet is $60,000

Explanation:

Balance sheet: In the balance sheet, the assets, liabilities, and stockholder equity is recorded. In this the accounting equation is used which is shown below:  

Total assets = Total liabilities + stockholder equity  

The debit and credit side of the balance sheet should always be equal and balanced.  

Moreover, it always is prepared on the specified date.

The investment should be recorded in the balance sheet at the fair value instead of the market value. So, the $60,000 would be reported in the balance sheet ,not the $57,000 as it is the cost value of the investment.

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<h2>What is corporate partner?</h2>

A corporate partnership means a beneficial relationship between two separate company for specific purpose.

Here, the car company and sheet metal supplier are corporate partners because they have a specific purpose they serve there selves.

In conclusion, the car company would be called a <u>supplier's corporate partner</u> if its collaborated with a sheet metal supplier.

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3 years ago
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Private Savings = GDP - Taxes + Transfer payments - Consumption Spending

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4 years ago
Jake is the maker of a $2,000 promissory note payable to Kim. Kim indorses the note toLou who, in turn, indorses it to Mona, who
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3 years ago
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The beginning inventory was  $2000.

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