Determine the unrealized gain or loss on the investment

Assignment Help Financial Management
Reference no: EM132325922

Question

On January 2, 2018, All Good Company purchased 15,000 shares of the stock of Big Bad Company, and DID NOT obtain significant influence. The investment is intended as a long-term investment. The stock was purchased for $14 per share, and represents a 10% ownership stake. Big Bad Company made $300,000 of net income in 2018, and paid dividends to All Good Company of $10,000 on December 15, 2018.

On December 31, 2018, Big Bad Company's stock was trading on the open market for $19.50 per share at the end of the year. Use this information to determine the unrealized gain or loss on the investment that should be reported at year end by All Good Company. If it is a loss, enter as a negative number. Round to nearest whole dollar.

Reference no: EM132325922

Questions Cloud

Why did the pilgrims owe squanto gratitude : Describe the struggle of the Pilgrims before coming to Plymouth and after coming to Plymouth. Was their journey worth the struggle?
How much interest expense will be paid on august 31 : The mortgage entailed equal monthly payments of $2,600 at the end of each month. The interest rate is 8.0% per year.
Determine the book value of the investment that should be : On January 2, 2018, All Good Company purchased 7,000 shares of the stock of Big Bad Company, and DID obtain significant influence.
How does bradstreet struggle with the doctrine of weaned : In the poem "Here Follows Some Verses upon the Burning of Our House," how does Bradstreet struggle with the doctrine of weaned affections.
Determine the unrealized gain or loss on the investment : On January 2, 2018, All Good Company purchased 15,000 shares of the stock of Big Bad Company, and DID NOT obtain significant influence.
Compute depreciation for each year : A machine costing $ 216,600 with a four year life and an estimated $ 19,000 salvage value is installed in luther company's on.January 1.
Describe the themes and defitions of liberty : Here are the themes and definitions: LIBERTY: The growth of the ideal of democracy and the pursuit of freedom. EQUALITY: The diversity of the American people.
Determine the dollar value of goodwill : Big Company purchased Small Company for $1,450,000. Small Company had assets with a fair value $1,150,000, and liabilities with a fair value of $200,000.
What media are their primary sources of information : What media are their primary sources of information? Consider: age/generational differences, regional/geocultural differences, socioeconomic differences.

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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