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Fiesta28 [93]
3 years ago
12

On January 1, Year 1, Grade Company paid $300,000 for 20,000 shares of Medium Company's common stock, which represents a 15% inv

estment in Medium. Grade does not have the ability to exercise significant influence over Medium. Medium declared and paid a dividend of $1 a share to its stockholders during Year 1. Medium reported net income of $260,000 for the year ended December 31, Year 1, and had a market value of $300,000 at December 31, Year 1. The balance in Grade's balance sheet account "Investment in Medium Company" at December 31, Year 1, should be
a) $280,000.

b) $300,000.

c) $319,000.

d) $339,000.
Business
1 answer:
slavikrds [6]3 years ago
8 0

Answer:

B) $300,000.

Explanation:

Since Grade Company cannot exercise any real influence on Medium Company, it cannot value its investment using the equity method and must record its investment at fair market value. This means that the investment account must equal the market value of the 20,000 stocks, which in this case is $300,000. Grade Company should also record dividends received as revenue from investing activities.

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Answer:

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So, for every $170 the discount will be = \frac{\$ 170}{\$ 100}\times \$ 19

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3 0
3 years ago
Which of the following terms is used to describe the set of policies that relate to government spending, taxation, and borrowing
ch4aika [34]

Answer:

fiscal policies

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3 years ago
Generally, when business startup costs exceed the maximum amount allowed, the remaining costs may be amortized over_____ months.
irina1246 [14]

Answer:

The correct answer is letter "B": 180.

Explanation:

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8 0
3 years ago
Which is true about the workplace of Construction workers? It can change. It is never outdoors. It can be in an existing buildin
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6 0
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Read 2 more answers
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