What is the year-end balance of the equity investment

Assignment Help Financial Accounting

Reference no: EM131293610

Farmer Corporation purchases 45% of the common stock of Jackson, Inc. at a purchase price of $13.5 million cash. During the year, Jackson reports net income of $1,850,000 and pays $340,000 of cash dividends. At the end of the year, the market value of Farmer’s investment is $14.8 million.

What is the year-end balance of the equity investment in Jackson?

a. $14,179,500

b. $15,010,000

c. $14,332,500

d. $13,500,000

e. None of the above

Reference no: EM131293610

Questions Cloud

Impact of this transaction on additional paid-in capital : Hudson Co. compensates its executives with restricted stock. During 2014, the company granted 9,500 shares of $1 par value restricted common stock that will vest over ten (10. years. The market value of the shares was $6 at the time of the grant. Wha..

Total equivalent units for direct materials-conversion? cost : Complete for materials and? 50% complete for conversion costs. What are the total equivalent units for direct materials and conversion? costs?

What is the capitalized cost of the land : Sherman Inc. purchased or constructed the following assets during year 1. Use the spreadsheet below to calculate the amount that the company should capitalize for each of the following property, plant and equipment assets. Enter your answer in the ap..

Straight line deprectiate on a building : Classify the total costs of each of the following as variable, fixed, mixed, or step: traight line deprectiate on a building. Maintenance costs at a hospital. Rent on a photocopy machine charged as a fixed amount per month plus an additional charge p..

What is the year-end balance of the equity investment : Farmer Corporation purchases 45% of the common stock of Jackson, Inc. at a purchase price of $13.5 million cash. During the year, Jackson reports net income of $1,850,000 and pays $340,000 of cash dividends. At the end of the year, the market value o..

Estimate the average cost per unit for the second lot : A facility has produced 56 units. From the initial run it is estimated that the cost of the first product was $100 with a learning rate of 93%. It now intends to run a larger lot of 250 units. Estimate the average cost per unit for the second lot. Wh..

Allowance for doubtful accounts : McGlone Corporation had a 1/1/14 balance in the Allowance for Doubtful Accounts of $25,000. During 2014, it wrote off $18,000 of accounts and collected $5,250 on accounts previously written off. The balance in Accounts Receivable was $500,000 at 1/1 ..

Define comprehensive income : Comprehensive Income. Define comprehensive income. Explain why comprehensive income is important. List and describe the 4 components of other comprehensive income under US GAAP.

Allocation for manufacturing overhead : Squire Corporation charged Job 110 with $ 14100 of direct materials and $ 12 comma 200$12,200 of direct labor. Allocation for manufacturing overhead is 80?% of direct labor costs. What is the total cost of Job? 110?

User Account

All Pages