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mr_godi [17]
3 years ago
15

On June 1, 2018, Blue Co. distributed to its common stockholders 180,000 outstanding common shares of its investment in Red, Inc

. an unrelated party. The book value on Blue’s books of Red's $1 par common stock was $1.20 per share. Immediately after the declaration, the market price of Red's stock was $3.40 per share. In its income statement for the year ended June 30, 2018, what amount should Blue report as gain before income taxes on disposal of the stock? (Do not round your intermediate calculation.)
Business
1 answer:
faltersainse [42]3 years ago
8 0

Answer:

Blue Co. Shall report $396,000 as gain before income taxes on disposal of the stock.

Explanation:

Book value per share of Red Inc = $1.20 per share

As the value of share is revised just after the declaration but before distribution there will be gain on sale of investment.

Net gain = Sale price - Book value

= $3.40 - $1.20 per share = $2.2 per share

Total gain for the year end on June 30 will be

= $2.2 per share X 180,000 shares = $396,000 shares

Thus Blue Co. Shall report $396,000 as gain before income taxes on disposal of the stock.

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When an organization develops integrated manufacturing systems such as advanced 10) manufacturing technology and just-in-time in
max2010maxim [7]

Answer: (E) Strategic human resource management.

Explanation:

 The strategic human resource management is one of the organization practices that developed various types goals, objective and the strategy of the human resource management.

The main aim of the human resource management is that it develop the organization culture, rewarding, innovation and also provide the advance flexibility.

They make the organization more stronger and effective by find out the talented employees and it is also known as the support system of an organization.

Therefore, Option (E) is correct.

8 0
3 years ago
A method of accounting for uncollectible receivables in which the company estimates bad debts expense instead of waiting to see
bazaltina [42]

Answer:

The statement is True as well as correct

Explanation:

Allowance method is the financial term which is defined as the uncollectible accounts receivable procedure that reports the estimate of the bad debt expense in the same accounting or fiscal year as the sale.

Under this method, it is used to adjust the accounts receivable which appears on the balance sheet.

For example,

If the company has the credit sales of $800,000 in December and estimate that the 4% will be uncollectible. Then using this method, computing the uncollectible as:

Bad debt expense = Sales × Estimate uncollectible

= $800,000 × 4%

= $32,000

So, this estimate the bad debt expense rather than wait to see which customer will not able to collect.

5 0
3 years ago
Which of the following is the best example of a positive question?a. How are price and quantity demanded related?b. How should t
fredd [130]

Answer:

a. How are price and quantity demanded related?

b. How should the government deal with the next recession?

Explanation:

A positive question is the kind of question the answer of which is simply yes or no. They ask about how one thing is rather than how something should be.

In above question, there are two questions which fall in the category of positive questions because of the way they are formed and what they are asking.

6 0
3 years ago
I need help solving this. Thanks
DedPeter [7]

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3 0
3 years ago
Naomi has a home loan amount of $120,000. Her monthly principal and interest payment is $679.00 for thirty years. How much inter
Viktor [21]

Answer:

$124,440

Explanation:

Given a monthly principal and interest payment of $679, over the 30 year period, Naomi would have paid back

$679 * 30 year * 12 months in a year

= $244,440

With a loan amount of @120,000, the interest portion of the total repayment is therefore = total repayment less the loan amount

= $244,440 - $120000

= $124,440.

8 0
3 years ago
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