User Account

All Pages

Compute the carrying value of the investment in bonobo

Assignment Help Accounting Basics
Reference no: EM132561608

Question - On March 28, 2020, Kermit Inc. purchased 42,000 shares of Bonobo Inc. for $5 per share. Bonobo has 100,000 shares outstanding. On December 1, Kermit received a total of $3,000 of cash dividends. On December 31, Bonobo reported net income of $50,000. At this date, the market price of Bonobo stock is selling for $10 per share. On February 1, 2021, Kermit sold 2,000 shares of Bonobo stock for $10 each. On December 1, Kermit received a total of $1,000 of cash dividends from Bonobo. On December 31, Bonobo reported a net loss of $20,000 and the market price is selling for $6 per share on this date.

Instructions - Compute the carrying value of the investment in Bonobo stock account at December 31, 2021.

Reference no: EM132561608

Questions Cloud

Calculate expected rate of interest of a one-year investment : Using the pure expectations approach to the determination of interest rates, calculate the expected (E) rate of interest of a one-year investment
Demonstrate the net income would : Foreign market which would not affect its present sales. If the company has sufficient capacity to produce the additional units, the net income would
What amount will reduce the amount due : What amount will reduce the amount due on an invoice of $2037.67 by $1241.25 if the terms of the invoice are 1/10, n/45
Show budgeted income statement for the year ended dec : Prepare Budgeted Income Statement for the year ended Dec. 31, 2020.SAMSONITE Leather Manufactring has budgeted sales for 2020-Dec.
Compute the carrying value of the investment in bonobo : On March 28, 2020, Kermit Inc. purchased 42,000 shares of Bonobo Inc. for $5 per share. Compute the carrying value of the investment in Bonobo stock
Renin inhibitors be effective in treating hypertension : Why would a drug called renin inhibitors be effective in treating hypertension?
Make budgeted income statement for the year ended dec : Make Budgeted Income Statement for the year ended Dec. 31, 2020. Do think if relying on 5 years data is quite reasonable for deal with future market forecast
Discuss the main function of electrolytes : Discuss the main function of electrolytes and what happens if the electrolytes are out of balance.
How this error should be corrected : Instructions - Explain in your own words to the accounting department of this firm how this error should be corrected

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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