Solution-How much of cooks net income

How much of cooks net income

Assignment Help Managerial Accounting

Reference no: EM13515061

On January 1, 2010, Mehan, Incorporated purchased 15000 shares of Cook Company for $150000 giving Mehan a 15% ownership of Cook. On January 1, 2011 Mehan purchased an additional 25000 shares (25%) of Cook for $300000. This last purchase gave Mehan the ability to apply significant influence over Cook. The book value of Cook on January 1, 2010, was $1000000. The book value of Cook on January 1, 2011, was $1150000. Any excess of cost over book value for this second transaction is assigned to a database and amortized over five years.
net income 2010=200000 div=50000
net income 2011=225000 div=50000
net income 2012=250000 div=60000
On April 1, 2012, just after its first dividend receipt, Mehan sells 10000 shares of its investment.
How much of Cook's net income did Mehan report for the year 2012?
A $61750
B $81250
C $72500

Reference no: EM13515061

Questions Cloud

Define the empirical and molecular formula for a compound : What is the empirical and molecular formula for a compound that is 46.16% carbon, 5.16% hydrogen and 48.68% fluorine if the molar mass of this compound is 156.12 g

How much interest was paid : 1. A loan was repaid in five years by end-of-quarter payments of $1,200 at 9.5% compounded semi-annually. How much interest was paid?

Explain solutions are mixed and give the net ionic equation : Predict any precipitates that are formed when the following solutions are mixed and give the net ionic equation. Ba(NO3)2 solution and KOH solution.

Define limestone in kilograms required for neutralize lake : Lakes that have been acidified by acid rain can be neutralized by the addition of limestone (CaCO3). How much limestone in kilograms would be required to completely neutralize a 5.2 x 109 L lake containing 5.0 x 10-3 g of H2SO4 per liter

How much of cooks net income : How much of Cook's net income did Mehan report for the year 2012?

Define which reactant is in excess from the reaction : Which reactant is in excess from the reaction of 35.0 g of hydrogen with 276 g of oxygen to form water

The corporate scandals that led to its creation : What were the corporate scandals that led to its creation

How to find out the ph of the solution after the addition : A 100.0 mL sample of 0.10 M NH3 is titrated with 0.10 M HNO3. Determine the pH of the solution after the addition of 150.0 mL of HNO3. The Kb of NH3 is 1.8 × 10-5.

Explain include the amounts of tris-base and edta : Outline the steps necessary to properly prepare 100ml of TE buffer. Include the amounts of Tris-base and EDTA, and all steps necessary to adjust the pH, including when you add what bolumes of water.

User Account

All Pages

How much of cooks net income

Reference no: EM13515061

Reference no: EM13515061

Questions Cloud

Reviews

Write a Review

Managerial Accounting Questions & Answers

Discuss what some of the reports and ratios

Calculate the cost in ending finished goods inventory

A city government estimates that they must accrue 15

Show the integrity issues

Access and examine budget of united states

Advise managers whether or not this contract is profitable

Flexible budgets and standard costing

Doral company-operating income or breakeven

Estimated costs and cost per unit needed

Management is challenging however dealing with people is

Prepare a master budget for the three-month period

Dr massy who specializes in internal medicine wants to

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT