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Vedmedyk [2.9K]
2 years ago
9

On January 2, 2020, All Good Company purchased 6,000 shares of the stock of Big Bad Company, and DID obtain significant influenc

e. The investment is intended as a long-term investment. The stock was purchased for $10.00 per share, and represents a 30% ownership stake. Big Bad Company made $450,000 of net income in 2020, and paid dividends to All Good Company of $40,000 on December 15, 2020. Big Bad Company's stock was trading on the open market for $15.50 per share at the end of the year. Use this information to determine the book value of the investment that should be reported at year end by All Good Company. Round to nearest whole number (no cents).
Business
1 answer:
Yuri [45]2 years ago
8 0

Answer:

$155,000

Explanation:

Calculation to determine the book value of the investment that should be reported at year end by All Good Company

Initial investment (6,000* $10.00 per share) $60,000

Add: Net income ($450,000*30%) $135,000

Less: Dividend ($40,000)

Ending balance of investment $155,000

($60,000+$135,000-$40,000)

Therefore the book value of the investment that should be reported at year end by All Good Company is $155,000

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Answer:

A. The grocery department of a Walmart Supercenter or Target Superstore

Explanation:

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3. Why would the sale of counterfeit products through its sites be damaging to Alibaba?
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Lakeland, Inc. has 25,000 shares of 6%, $100 par value, noncumulative preferred stock and 50,000 shares of $1 par value common s
Maru [420]

Answer:

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The preferred stock is non cumulative which means that in case it does not pay dividends in a certain year, the dividends will no be accumulated and the company will not be obliged to pay these dividends in later year.

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3 years ago
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masha68 [24]

Answer:

The correct answer is option d.

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A company purchased a new delivery van at a cost of $61,000 on July 1. The delivery van is estimated to have a useful life of 5
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