Long-term investments that cost the company $25 were sold during the year for $54 and land that cost $53 was sold for $28. In ad

Question

riadik2000 [5.3K]

3 years ago

11

Long-term investments that cost the company $25 were sold during the year for $54 and land that cost $53 was sold for $28. In ad

dition, the company declared and paid $22 in cash dividends during the year. Besides the sale of land, no other sales or retirements of plant and equipment took place during the year. Pavolik did not retire any bonds during the year or issue any new common stock.

Business

1 answer:

adell [148] · Answer 1 · 2022-03-14T02:33:50+03:00

Answer:

Explanation:

Long-term Investment cost = $25

Long-term Investment sales value = $54

Gain from Long-term Investment = $(54-25) = $29

Land cost = $53

Land sales value = $28

Loss from sale of Land = $(28-53) = -$25

Cash Dividend paid = $22

Total change in Assets = $(29-25) = $4

Total change in Equity = -$22