1 16 On January 1, 2024, Clor-Proell Enterprises bought 20% of the outstanding common stock of Chen Construction Company for $600 million cash. Chen's net income for the year ended December 31, 2024, was $300 million. During 2024, Chen declared and paid cash dividends of $60 million. Clor-Proell recorded the investment as follows: points PURCHASE General Journal ($ in millions) Debit Credit Investment in Chen Construction shares Cash 600 600 eBook NET INCOME Investment in Chen Construction shares (20% x $300 million) 60 Investment revenue 60 DIVIDENDS Hint Cash (20% x $60 million) 12 Investment in Chen Construction shares 12 Required: Print References What would be the pretax amounts related to the investment that Clor-Proell would report in its statement of cash flows for the year ended December 31, 2024? Note: Enter your answers in millions (i.e., 10,000,000 should be entered as 10). Cash outflows should be indicated with a minus sign. Operating activities $ 600 Investing activities $ 60 Financing activities $ 12
1 16 On January 1, 2024, Clor-Proell Enterprises bought 20% of the outstanding common stock of Chen Construction Company for $600 million cash. Chen's net income for the year ended December 31, 2024, was $300 million. During 2024, Chen declared and paid cash dividends of $60 million. Clor-Proell recorded the investment as follows: points PURCHASE General Journal ($ in millions) Debit Credit Investment in Chen Construction shares Cash 600 600 eBook NET INCOME Investment in Chen Construction shares (20% x $300 million) 60 Investment revenue 60 DIVIDENDS Hint Cash (20% x $60 million) 12 Investment in Chen Construction shares 12 Required: Print References What would be the pretax amounts related to the investment that Clor-Proell would report in its statement of cash flows for the year ended December 31, 2024? Note: Enter your answers in millions (i.e., 10,000,000 should be entered as 10). Cash outflows should be indicated with a minus sign. Operating activities $ 600 Investing activities $ 60 Financing activities $ 12
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
ChapterA2: Investments
Section: Chapter Questions
Problem 11MCQ
Related questions
Question
![1
16
On January 1, 2024, Clor-Proell Enterprises bought 20% of the outstanding common stock of Chen Construction Company for $600
million cash. Chen's net income for the year ended December 31, 2024, was $300 million. During 2024, Chen declared and paid cash
dividends of $60 million. Clor-Proell recorded the investment as follows:
points
PURCHASE
General Journal
($ in millions)
Debit
Credit
Investment in Chen Construction shares
Cash
600
600
eBook
NET INCOME
Investment in Chen Construction shares (20% x $300 million)
60
Investment revenue
60
DIVIDENDS
Hint
Cash (20% x $60 million)
12
Investment in Chen Construction shares
12
Required:
Print
References
What would be the pretax amounts related to the investment that Clor-Proell would report in its statement of cash flows for the year
ended December 31, 2024?
Note: Enter your answers in millions (i.e., 10,000,000 should be entered as 10). Cash outflows should be indicated with a minus
sign.
Operating activities
$
600
Investing activities
$
60
Financing activities
$
12](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcbf9f57a-e544-490e-95ad-803355163c97%2Ff8379e30-aaf8-4af2-88f7-061f6a3f0958%2Fptbg2eh_processed.jpeg&w=3840&q=75)
Transcribed Image Text:1
16
On January 1, 2024, Clor-Proell Enterprises bought 20% of the outstanding common stock of Chen Construction Company for $600
million cash. Chen's net income for the year ended December 31, 2024, was $300 million. During 2024, Chen declared and paid cash
dividends of $60 million. Clor-Proell recorded the investment as follows:
points
PURCHASE
General Journal
($ in millions)
Debit
Credit
Investment in Chen Construction shares
Cash
600
600
eBook
NET INCOME
Investment in Chen Construction shares (20% x $300 million)
60
Investment revenue
60
DIVIDENDS
Hint
Cash (20% x $60 million)
12
Investment in Chen Construction shares
12
Required:
Print
References
What would be the pretax amounts related to the investment that Clor-Proell would report in its statement of cash flows for the year
ended December 31, 2024?
Note: Enter your answers in millions (i.e., 10,000,000 should be entered as 10). Cash outflows should be indicated with a minus
sign.
Operating activities
$
600
Investing activities
$
60
Financing activities
$
12
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