Problem regarding investor in common stock

Assignment Help Accounting Basics
Reference no: EM13126668

An investor in common stock received dividends in excess of the investor's share of investee's subsequent to the date of the investment. How will the investor's investment account be affected by those dividends under each of the following accounting methods?

Cost method Equity method

a. No effect     No effect

b. Decrease    No effect

c. No effect      Decrease

d. Decrease     Decrease

Reference no: EM13126668

Questions Cloud

Market rate of return : Equestrain Roads sold $50,000 of goods and accepted the customer's $50,000 10% 1-year note receivable in exchange. Assuming 10% approximates the market rate of return, what would be the debit in this journal entry to record the sale?
What is the balance in the investment in harrison account : On January 1, Pucket company paid 1.6 million for 50,000 shares of Harrison's voting common stock, which represents a 40 percent investment.
Find standard temperature pressure and volume : Standard Temperature Pressure and Volume, The respiratory rate of a person is 20 breathes per minute. If every average breath is about 310cm^3 of air at 22C and 740mmHG
Utilise specific, relevant and clearly explained frameworks : Some of the business practices portrayed in the film Inside Job would be criticised by both John Rawls and Robert Nozick. Identify and describe some of these problematic practices in Inside Job and then.
Problem regarding investor in common stock : An investor in common stock received dividends in excess of the investor's share of investee's subsequent to the date of the investment. How will the investor's investment account be affected by those dividends under each of the following accounti..
Instantaneous velocity and acceleration : A ski jump is design to follow the path given by the equations: x=3.5t^2 and y=20.0+0.120t^4 - 3.00 sqrt(t^4+1) (0 less than or equal to (t) less than or equal to 4.00 s) ( x and y in m, t in s). Find the velocity and acceleration of a skier when ..
Probability that mean diameter of srs differs target value : What is the probability that the diameter of a single randomly chosen axle differs from the target value by 0.01 mm or more?
Energy of visible photos and breaking of the bond : Energy of visible photos and breaking of the bond in AgI, The silver iodine bond energy is approx 255kJ/mol. (AgI is one of the active components in photograpgy sunglasses.)
Difference between a file oriented and a database system : Bonadio Ekectrical Supplies distributes electrical components to the construction idustry. The company began as a local suookier 15 yrs ago and has rwon rapidly to become a major competitor in the north central US.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Retirement saving funds

You have a total of $411,016 in your retirement savings and have the funds invested such that you expect to earn an average of 7.10 percent, compounded monthly on this money throughout your retirement years.

  Differential analysis report

Prepare a differential analysis report, dated February 8 of the current year, on the proposal to discontinue Product J. Calculate the annual differential profit.

  Questions based on partnership

Questions based on partnership. a)Write definition of partnership? b) Name and discuss the characteristics of a partnership c) Advantages of a partnership as a form of business

  What is meant by variance power

What is meant by variance power? Suppose that a charitable foundation receives a gift that the donor specifies must be used to support the college education of a particular individual. Of what relevance is variance power to how the foundation acco..

  Time value of money for tax refunds

Should you over pay taxes throughout the year and get a refund, knowing the government does not pay interest on the overpayment? Use time value of money to explain.

  Determine the inventory direct labor costs

Assuming that the company's $337,485 ending Finished Goods Inventory account for year 2011 had $137,485 of direct materials costs, determine the inventory's direct labor costs and its overhead costs.

  What amount of direct material was included in this job

Bobcat Company uses a job-order costing system. During April, the following costs appeared in the work in Process Inventory account: Beginning balance $24,000, Direct material used 70,000, direct labor incurred 60,000, applied overhead 48,000, cos..

  Under equity method-subsidiary debt

Under the equity method, a parent company that has guaranteed all of its subsidiary's debt would:

  Evaluate how much accountability for ais security

As a senior manager of your information technology group, discuss how you would demonstrate, by example, the importance of security and then propose a method for creating a "security aware" culture. Provide specific examples to support your respon..

  Two-stage method cost allocation for overhead

Explain the activity-based costing (ABC) and traditional two-stage method cost allocation for overhead. Why would a firm use activity-based costing (ABC) rather than traditional two-stage methods of cost allocation for overhead?

  Calculation of deferred tax asset and liability at the end

Machinery was acquired in January for $300,000. Straight-line depreciation over a ten-year life (no salvage value) is used. For tax purposes, accelerated depreciation is used and Orkin may deduct 14% for 2012.

  Prepare the property, plant

Lowell Company's December 31, 2012, trial balance includes the following accounts: Inventories $120,000; Buildings $207,000; Accumulated Depreciation-Equipment $19,000; Equipment $190,000; Land Held for Investment $46,000; Accumulated Depreciation..

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