Find the value of remaining investment and the gain on sale

Assignment Help Accounting Basics

Reference no: EM131967146

Problem

Assume that on December 31, 2014, HassenCo's Investment in Sultan account has a balance of $510,000. Also, assume that Hassen's 80% interest in Salt has a fair value of $750,000. On January 1, 2015, Hassen sells half (remaining 40%) of Sultan's shares for $200,000. 4 Marks

Required:

1- Find the value of remaining investment and the gain on sale for Hassen Co. (Show your calculation)

2- Prepare the appropriate journal entry of the sale gain and deduction of the investment for Hassen Co.

Reference no: EM131967146

Questions Cloud

Why is rifling present in the bore of the barrel : Compare and contrast a revolver versus a semiautomatic handgun. How is the caliber of a handgun determined?

The formulation of the unified cyber policy directive : Responding with your ideas, suggestions and strategy recommendations for the formulation of this unified cyber policy directive.

What will be the balance reported as a liability by munson : Assuming the interest rate for this lease is 13%, what will be the balance reported as a liability by Munson in the December 31, 2017, balance sheet?

How a commercial bank acts as an intermediary : Describe how a commercial Bank (JP MORGAN chase etc) acts as an intermediary in the creation and flow of money? Example, how does it use hacking and savings.

Find the value of remaining investment and the gain on sale : Assume that on December 31, 2014, HassenCo's Investment. Find the value of remaining investment and the gain on sale for Hassen Co. (Show your calculation)

Provide an overview of intellectual property law : To address these concerns, they have asked you to develop an intellectual property policy to implement within the organization.

How much will derek need to save each month : Derek is 45 years old and works as a radio producer for the CBC. He's done a decent job so far saving for retirement and has $20,000 in his RRSP along.

Perform differential analysis on this make or buy decision : Perform differential analysis on this make or buy decision. How much more/less costs is the make alternative compared to the 'buy' alternative?

Define the elements of a legal contract using examples : Jim and Laura have an appointment to see a lawyer in a few days, but know you are a student taking a business law class and come to you for advice.

User Account

All Pages