User Account

All Pages

Determine the book value of the investment

Assignment Help Accounting Basics
Reference no: EM132228106

Question - On January 2, 2018, All Good Company purchased 7,000 shares of the stock of Big Bad Company, and DID obtain significant influence. The investment is intended as a long-term investment. The stock was purchased for $13 per share, and represents a 30% ownership stake. Big Bad Company made $350,000 of net income in 2018, and paid dividends to All Good Company of $20,000 on December 15, 2018. Big Bad Company's stock was trading on the open market for $12 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 dollar.

Reference no: EM132228106

Questions Cloud

How do you win your customers easily : This creates an easy to follow and implement a strategy that is going to set your company on the right course and direction for growth in sales and customer.
Determine Towson Company Net Cash Flows : Use this information - Net Income $3,000,000, to determine Towson Company's Net Cash Flows from Operating Activities
How much interest expense will be paid on august : Allstar Company signed a $300,000 mortgage on July 1, 2018. The interest rate is 7.0% per year. How much interest expense will be paid on August 31, 2018
Describing what is evolution : In your own words, answer the question "what is evolution?" Don't look up sources on the internet, or other places. I want YOUR answer, YOUR thoughts.
Determine the book value of the investment : Big Bad Company's stock was trading on the open market for $12 per share at the end of the year. Use this information to determine book value of the investment
Are traits influenced just by genes or just by environment : The Great Nature VS Nurture Debate. What does it mean to talk about "nature" or "nurture"? Are traits influenced just by genes or just by the environment?
Determine the unrealized gain or loss on the investment : Use this information to determine the unrealized gain or loss on the investment that should be reported at year end by All Good Company
Determine the dollar value of goodwill : Small Company had assets with fair value $1,100,000, and liabilities with a fair value of $180,000. Use this information to determine dollar value of goodwill
Define advantage of pairing a biologist with a psychologist : What are the similarities and differences between a biological focus on mental events versus a psychological focus? What would be the advantage of pairing.

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