What is the balance in the investment

Assignment Help Accounting Basics
Reference no: EM13153276

On January 1, Puckett Company paid $1.6 million for 50,000 shares of Harrison's voting common stock, which represents a 40 percent investment. No allocation to goodwill or other specific account was made. Significant influence over Harrison is achieved by this acquisition. Harrison distributed a dividend of $2 per share during the year and reported net income of $560,000. What is the balance in the Investment in Harrison account found in the financial records of Puckett as of December 31?

a. $1,724,000

b. $1,784,000

c. $1,844,000

d. $1,884,000

Please show calculation, thanks.

Reference no: EM13153276

Questions Cloud

Use of analytical procedures in auditing : How are the analytical procedures used in an audit engagement? What premise underlies the use of analytical procedures in auditing? What sources of information can an auditor use to develop expectations? Please provide examples.
Determining economic order quantity : What is the economic order quantity? Purchasing at the EOQ recommended level, what are the relevant total costs?
What is the balance in the investment : Significant influence over Harrison is achieved by this acquisition. Harrison distributed a dividend of $2 per share during the year and reported net income of $560,000. What is the balance in the Investment in Harrison account found in the financ..
Discuss how the structure of the dna molecule : Discuss how the structure of the DNA molecule is well-suited for its function of storing and transmitting hereditary information and describe how DNA is passed from parent to offspring through generations?
Cost and installation of machinery : Prepare entries to record the purchase of the land, the cost and installation of machinery, the first five month's depletion assuming the land has a net salvage value of zero after the ore is mined
Are there systematic effects of time remaining after regress : Connect the successive points by line segments to help see the pattern. Are there systematic effects of time remaining after we regress consumption on price?
How much energy (in kilojoules) is required : How much energy (in kilojoules) is required to convert 225 mL  of diethyl ether at its boiling point from liquid to vapor if its density is 0.7138 g/mL?

Reviews

Write a Review

 

Accounting Basics Questions & Answers

  Problem related to disclosure

Disclosure usually is not required for: A) contingent gains that are probable and can be reasonably estimated. B) contingent losses that are reasonable possible and cannot be reasonably estimated.

  Securities-risk and their betas

Security A has an expected return of 7 percent, a standard deviation of expected returns of 35 percent, a correlation coefficient with the market of -0.3, and a beta coefficient of -0.5. Security B has an expected return of 12 percent

  Relation to the decision to make or buy the component

If the company were to buy the component, the machine would no longer be rented. The rent on the machine, in relation to the decision to make or buy the component, is:

  Annual gift tax exclusion

The annual policy premium of $12,000 had been paid on January 1. Damitria's gift (before the annual gift tax exclusion) to Tremayne is:

  Budgeted direct labor costs

The company plans to sell 22,000 units of Product WZ in June. The finished goods inventories on June 1 and June 30 are budgeted to be 100 and 400 units, respectively. Budgeted direct labor costs for June would be:

  Price discrimination on the part of the firm

If you purchased a new model of a digital camera right after it is released, you will likely pay more than if you purchase it six months after release. Explain why this is an example of price discrimination on the part of the firm.

  Using the appropriate interest table

What is the future value of $9,000 at the end of 5 periods at 8% compounded interest?

  What does it mean to audit around the computer

How might the senior audit manager or partner on a particular engagement determine how much cost is acceptable to incur in order to test a particular area? Can you think of any lower cost alternatives?

  What is the amount of the finance charge

A customer charges a treadmill at Mike's Sport Shop. The price is $2,000 and the financing charge is 9% per annum if the bill is not paid in 30 days. The customer fails to pay the bill within 30 days and a finance charge is added to the customer's..

  Prepare income statement in a multiple step format

Quartz Co. sells home furniture had the following account balances: Required: Prepare income statement in a multiple step format.

  Equity process to account for the investment

Pepe uses the equity method to account for its investment in Devin. What is the gain or loss on equipment reported by Devin for 2009?

  Depreciation for each of the five years

A machine costing $50,000 with a 5-year life and $5,000 residual value was purchased January 2, 2007. Compute depreciation for each of the five years, using the declining-balance method at twice the straight-line rate.

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