What is the unrealized gain or loss on the investment

Assignment Help Accounting Basics
Reference no: EM132229150

Question - On January 2, 2018, All Good Company purchased 13,000 shares of the stock of Big Bad Company, and DID NOT obtains significant influence. The investment is intended as a long-term investment. The stock was purchased for $18 per share, and represents a 10% ownership stake. Big Bad Company made $425,000 of net income in 2018, and paid dividends to All Good Company of $7,500 on December 15, 2017. On December 31, 2017, Big Bad Company's stock was trading on the open market for $13.50 per share at the end of the year. What is the unrealized gain or loss on the investment that should be reported at year end by All Good Company?

Reference no: EM132229150

Questions Cloud

Interactions and inputs different between goods and services : How are customer interactions and inputs different between goods and services?
Determine the dollar value of the interest expense : On January 1, 2018, Baltimore Company issued $250,000 face value, 7%, 5-year bonds at 102. Determine the dollar value of the interest expense
Explain this model in clear terms-decision variables : Explain this model in clear terms: what are the decision variables, what is the objective function, what are the constraints, etc?
Are you ready to escape the inner mental prison : So how about you? Even if you believe that the "sky is falling," what are you going to do about it? Are you willing and committed to be a part of the solution.
What is the unrealized gain or loss on the investment : What is the unrealized gain or loss on the investment that should be reported at year end by All Good Company
Appraisal of proposed construction as-if complete requires : The operations manager’s job process does not include. The appraisal of proposed construction "as-if" complete requires a(n):
Recording the journal entry : The note requires principal and interest at 12% to be paid on April 30, 2019. Please help with recording the journal entry
Discuss critically the role of foreign direct investment : Discuss critically the role of Foreign Direct Investment (FDI) in economic development of the Middle East Nations.
Describe the ways in which play is said to promote : Write an essay of 1 page needed APA format: Describe the ways in which play is said to promote childrens development. The response must be typed.

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.

  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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd