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vampirchik [111]
3 years ago
12

On June 1, 2021, Blue Co. distributed to its common stockholders 200,000 outstanding common shares of its investment in Red Inc.

which is an unrelated party. The book value on Blue's books of Red's $1 par common stock was $2.00 per share. Immediately after the declaration, the market price of Red's stock was $2.50 per share. In its income statement for the year ended June 30, 2021, what amount should Blue report as gain before income taxes on disposal of the stock?
Business
1 answer:
GalinKa [24]3 years ago
7 0

Answer:

Blue Co. should report $100,000 gain.

Explanation:

The difference between the carrying value of shares and Market value of shares is the gain / loss which Blue Co. should report before income taxes on disposal of the stock.

Carrying Value = 200,000 x $2 = $400,000

Market Value = 200,000 x $2.5 = $500,000

Gain = Market Value - Carrying Value

Gain = $500,000 - $400,000

Gain = $100,000

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Rufina [12.5K]

Answer:

Combien le coût du ciseaux dans la caractéristique de l’art en Chine salut, je ne sais pas quoi dire sur l’importance de la parentalité responsable 4, mais je ne sais pas quoi dire sur l’importance de la parentalité responsable 4, mais je ne sais pas quoi dire sur l’importance de la parentalité responsable

5 0
3 years ago
Southland farm sold ten september futures contracts on wheat. Southland farm will:______.
Oliga [24]

Southland farm sold ten September futures contracts on wheat. Southland farm will: both receive payment and deliver in September. Option A. This is further explained below.

<h3>What is the payment?</h3>

Generally, the act or process of making a monetary contribution to someone or something, or of receiving a monetary contribution.

In conclusion, Wheat futures contracts were sold by Southland Farm for 10 contracts in September. September will be a busy month for the Southland farm, with both payments and deliveries.

Read more about payment

brainly.com/question/15136793

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8 0
2 years ago
On July 1, the inventory of at Barnett Shoes was $60,000. Because of anticipated back-to-school sales, the owner wants to have a
AVprozaik [17]

Answer:

required purchase             83,500

Explanation:

The cost of inventory in july sales and our desired ending invenory is the amount we need. the beginning inventory is a portion of this demand already fullfil, we need to purchase for the difference.

cost of inventory sales for July:

           70,000 x (1 - 45%) =  38,500

desired ending inventory   105,000

beginning inventory        <u>    (60,000)   </u>

  required purchase             83,500

4 0
4 years ago
Sunland Inc. has conducted the following analysis related to its product lines, using a traditional costing system (volume-based
Tanya [424]

Answer:

<h2>a. Traditional Cost</h2>

Product 540X

= Revenue - Cost

= 200,000 - 53,000

=$147,000

Product 137Y

= 162,000 - 48,000

= $114,000

Product 249S

= 92,000 - 25,000

= $67,000

<h2>B. ABC Costing</h2>

Product 540X

= Revenue - Cost

= 200,000 - 47,100

=$‭152,900‬

Product 137Y

= 162,000 - 29,000

= $‭133,000‬

Product 249S

= 92,000 - 49,900

= $‭42,100‬

c.

Difference in Income for 540X

= \frac{Income under ABC - Income under Traditional costing}{Income under Traditional costing} \\\\= \frac{152,900 - 147,000}{147,000} \\\\= 0.0401

= 4.01%

Difference in Income for 137Y

= \frac{Income under ABC - Income under Traditional costing}{Income under Traditional costing} \\\\= \frac{133,000 - 114,000}{114,000} \\\\= 0.1667

= 16.67%

Difference in Income for 249S

= \frac{Income under ABC - Income under Traditional costing}{Income under Traditional costing} \\\\= \frac{42,100 - 67,000}{67,000} \\\\= -0.3716

= -37.16%

6 0
3 years ago
Horatio Alger is the product manager for Brand X, a consumer product with a retail price of $1.20. Retail margins are 35% while
Anna71 [15]

Answer:

Contribution per unit of Bran X = 51 cents

Contribution margin: 51 / 69 = 73.91%

Explanation:

<em>Retail price: 1.20</em>

retail margin of 35% --> thus the cost of good is 1.20 x ( 1 - 0.35) = 0.78

At this price the wholesalers trade to grosery store and others

wholesales margin 11.5% --> the price at which Alger sales the product to wholesalers:

0.78 x (1- 0.115) =<em> 0.6903 producer selling price</em>

Now from this, Horatio has the following variable cost:

variable manufacturing cost:   0.08

shipping and other cost:          0.03

sales persons 10% commision 0.06903

Total variable cost: 0.17903

Contribution per product: .6903 - 0.17903 = 0.51127 = 51 cents

8 0
3 years ago
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