Financial statements for fiscal year

Assignment Help Accounting Basics
Reference no: EM13129836

In Year 1, Investor Co. purchased 1,000 shares of Investee Co. stock for $20,000. These shares were properly accounted for as available for sale. At December 31, Year 1, the Investee Co.'s shares were being traded at $18. On February 1, Year 2, Investor sold 500 shares of Investee's stock for $17 per share. In the financial statements for its fiscal year ended December 31, Year 2, Investor should report a realized loss on disposal of the Investee Co. shares equal to:

a) $3,000

b) $1,500

c) $1,000

d) $8,500

Reference no: EM13129836

Questions Cloud

Discuss the inherent audit risk : Discuss the inherent audit risk with the use of account receivable confirmation letters and how this risk can be minimized by the auditing firm.
Definite integral for functions : How would you find the definite integral for the following functions: f(X) = 67 over the interval [0,1]
Provide a brief scenario of a specific type of business : Assess the importance of free cash flow in a growth company. Provide a brief scenario of a specific type of business that would benefit from free cash flow.
Explain distribution of lifetimes of all ultra batteries : Suppose that this mean applies to the population of all Ultra batteries. Complete the statements about the distribution of lifetimes of all Ultra batteries.
Financial statements for fiscal year : In the financial statements for its fiscal year ended December 31, Year 2, Investor should report a realized loss on disposal of the Investee Co. shares equal to:
Calculate the de broglie wavelength : Calculate the de Broglie wavelength for each of the following.
Integration of trigonometric functions : Use partial decomposition to integrate. (2x^2-x-20)/(x^2+x-6 ). (sint)(4cos^2t-1)/(cost)(1+2cos^2t+cos^4t)
Evaluate how the status of the pension fund affects : Evaluate how the status of the pension fund affects the level of risk that must be reported in the annual report. Justify your answer.
What is the lattice energy of crystalline calcium chloride : Given the tabulated data, what is the lattice energy of crystalline calcium chloride?

Reviews

Write a Review

 

Accounting Basics Questions & Answers

  What are the at-risk amounts for paul and amanda

Paul invest $10,000 cash in an equipment leasing activity for 15% ownership share in the business. The remaining 85% owner is Amanda. Amanda contributes $10,000 and personally borrows $75,000 that she also invests in the business. What are the at-..

  Describe two specific forms of unacceptable advertising

CPAs are allowed to advertise under the Rules of the AICPA Code of Professional Conduct.

  Traditional overhead allocation

List and describe four potential problems with a "traditional" overhead allocation system. List and describe four "red flags" that may indicate you should consider revising your overhead allocation system.

  What if a cahs receipt were applied to the wrong customer

What if a cahs receipt were applied to the wrong customer? Identify Internal control that would detect or prevent thid from occurring.

  Bond issue and interest accrued on bonds due adjustment

Show the journal entries in 2006. (Please be reminded the year-end for ABC Corporate is Dec 31, adjusting is required)

  Compute operating income for april, may and june

Mile-High Foods, Inc., was formed in March 2011 to provide prepackaged snack boxes for a new low cost regional airline beginning on April 1.

  Investment expected return and its standard deviation

(Expected rate of return and risk) Carter Inc. is evaluating a security. One-year Treasury bills are currently paying 9.1 percent. Calculate the investment's expected return and its standard deviation. Should Carter invest in this security?

  Result of the error and salvage value

Kentucky Enterprises purchased a machine on January 2, 2010, at a cost of $120,000. An additional $50,000 was spent for installation, but this amount was charged erroneously to repairs expense. The machine has a useful life of five years and a sal..

  Discuss how the proposed constraint addresses concerns

Other than for financial statements, management need report only the information it knows. That is, management should be under no obligation to gather information it does not have, or does not need, to manage the business.

  United states exchanges

The SEC currently requires foreign companies that list shares on U.S. exchanges to provide:

  Weighted-average inventory pricing

During 2010 Williamson Company changed from FIFO to weighted-average inventory pricing.

  Differences between tax and accounting income

Woody Corp. had taxable income of $8,000 in the current year. The amount of MACRS depreciation was $3,000 while the amount of depreciation reported in the income statement was $1,000. Assuming no other differences between tax and accounting income..

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!

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