User Account

All Pages

Calculate Pala income from Saga

Assignment Help Accounting Basics
Reference no: EM132609038

Question - The balance of Pala Corporation's investment in Saga Company account at December 31, 2018, was $872,000, consisting of 80% of Saga's $1,000,000 stockholders' equity on that date and $72,000 goodwill. On May 1, 2019 Pala sold a 20% interest in Saga (one-fourth of its holdings) for $260,000. During 2019, Saga had net income of $300,000, and on July 1, 2019, Saga declared dividends of $160,000.

REQUIRED -

A. Determine the gain or loss on sale of the 20% interest?

B. Calculate Pala's income from Saga for 2017?

C. Determine the balance of Pala's investment in Saga account at December 31, 2017?

Reference no: EM132609038

Questions Cloud

Approach organization can take to manage risk : Explain the various methods of approach an organization can take to manage risk.
Estimate the impact of the strategies on the hospital ROE : Estimate the impact of the strategies on the hospital's ROE. By how much would the 2017 ROE change from each of these strategies?
Strong influence on internal team dynamics : According to the Sarin and O'Connor (2009) article, certain team leader styles have a strong influence on internal team dynamics.
Explain US GAAP vs International Financial Report Standards : Explain the similarities and differences between the US GAAP and International Financial Reporting Standards (IFRS) and how they relate
Calculate Pala income from Saga : The balance of Pala Corporation's investment in Saga Company account at December 31, 2018, was $872,000, Calculate Pala income from Saga
Make a financial statement for handmade jewellery business : Assume your are going to start your Handmade Jewellery Business, now you need to make a financial statement and do FINANCIAL STATEMENT ANALYSIS
Discuss in detail the stakeholder theory approach : Discuss in detail the stakeholder theory approach from an organizational perspective.
Discuss the correct accounting treatment : For each situation, fully discuss the correct accounting treatment, including any required disclosures. Provide an explanation for your answers
Explain two disadvantages of discounted cashflow analysis : Explain two (2) disadvantages of discounted cashflow analysis. Compute the before tax cost of debt. Compute the after tax cost of debt.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Compute present value of the bids

A surface that costs $5.50 per square yard to install. This surface will have to be replaced at the end of 5 years. Compute present value of the bids

  Bonus for exceeding the monthly sales goal

Greg received a salary of $50,000 in 2010 from his employer, Green Construction Associates, Inc. In July 2010, Green gave each employee $2,500 as a bonus for exceeding the monthly sales goals. employee $2,500 as a bonus for exceeding the monthly s..

  There is no bargain purchase option and reagan guarantees a

reagan inc. signed a lease for some equipment having a 9-year useful life with silver leasing co. the lease payments

  What are each of Newmans contributions to the fund

Newman intends to make equal contributions on June 30 of each of the years 2020-2023. What are each of Newmans contributions to the fund

  What is the retained earnings balance

A company has the following information: 2015 Retained Earnings - $12.0 billion. What is the retained earnings balance at the end of 2016

  How does graham inc earn a profit

From a managerial perspective, how does Graham, Inc. earn a profit? Which costing system best reflects the basic economics of the business?

  Prepare journal entries to record these transactions

Prepare journal entries to record these transactions on Clayco Company's books.

  Explaining the accounting principles

Often research and development costs provide companies with benefits that last a number of years. (For example, these costs can lead to the development.

  What is the breakdown of the company current liabilities

What is the breakdown of the company's current liabilities at year end? Calculate the company's times-interest-earned ratio for the year end

  Compute the depreciation cost per unit

Jayhawk Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January

  The adjustment of depreciation of was omitted

The adjustment of $8,175 for accrued fees earned was journalized as a debit to Accounts Receivable for $8,175 and a credit to Fees Earned for $8,157.

  Analyze the issue or event in wellness

Analyze the issue or event in wellness through the first two lenses introduced in this course: history and the humanities. This will provide you

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd