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Mnenie [13.5K]
3 years ago
10

8. Point Co. purchased 90% of Sharpe Corp.'s voting stock on January 1, 20X2 for $5,580,000. Prior to the acquisition, Point hel

d a 10% equity position in Sharpe Company. On January 1, 20X2 Pointe's 10% investment in Sharpe has a book value of $340,000 and a fair value of $620,000. On January 1, 20X2 Point records the following: a. Debit Gain on revaluation of Sharpe's stock $280,000 b. Credit Gain on revaluation of Sharpe's stock $280,000 c. Credit Investment in Sharpe stock $5,860,000 d. Debit Investment in Sharpe stock $6,200,000
Business
1 answer:
aev [14]3 years ago
4 0

Answer:

Option (b) is correct.

Explanation:

Given that,

Cost of stock purchased = $5,580,000

Book value of 10% investment in Sharpe = $340,000

Fair value of 10% investment in Sharpe = $620,000

Therefore, the fair value of 10% investment in Sharpe company is greater than the book value. So, there is a gain of:

= Fair value of 10% investment - Book value of 10% investment

= $620,000 - $340,000

= $280,000

Hence, the gain on the revaluation of the Sharpe stock is credited.

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Answer and Explanation:

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By 2015, the foreclosure rate was down by 20%. The metropolitan statistical areas showing the highest percentage of improvement
sweet-ann [11.9K]

The correct option is C) Washington, D.C.

By 2015, the foreclosure rate was down by 20%. The metropolitan statistical areas showing the highest percentage of improvement included all of the following except "Washington, D.C".

<h3>What is foreclosure rate?</h3>

The process of foreclosure starts when a borrower is unable to make their mortgage payments. When a mortgage is foreclosed, the lender normally seizes the property and makes an effort to sell it. This occurs when real estate is utilised as security for mortgage loans, making your house a form of security.

The given are the ways to avoid Foreclosure-

  • Ask For Forbearance: As you may remember, forbearance enables borrowers to temporarily suspend mortgage payments while they recover their savings, boost their income, or pay down debt in the wake of financial troubles.
  • Apply For A Refinance: Refinancing into a more manageable payment can prevent you from going into default on the loan if you're worried about going through with a foreclosure. This regrettably isn't a possibility for everyone since it can only really be done if you haven't missed a payment.
  • Ask For A Mortgage Reinstatement: If you experienced temporary financial issues that have subsequently disappeared, speak with your servicer to learn about your alternatives.
  • Apply For A Short Sale: Selling your house for less than what is owed on the mortgage is known as a short sale. This requires the lender's approval, and all of the sale's proceeds will go to the lender.

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The complete question is -

By 2015, the foreclosure rate was down by 20%. The metropolitan statistical areas showing the highest percentage of improvement included all of the following EXCEPT

A) Los Angeles.

B) Miami.

C) Washington, D.C.

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Washington, D.C.

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