6 Company A has significant influence by owning 50,000 of the 100,000 shares of Company B common stock.During the current year, Company B earns $700,000 and pays cash dividends of $400,000.Which amount represents the resulting increase in the Equity Investment account?O $150,000O $200,000O $350,000O $550,000

Equity method is used when investor exercises significant influence over the investees. Investors…

Answered: Company A has significant influence by…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

10. Help me selecting the right answer. Thank you
Use the following information for the next five items: At the beginning of the current year, Glasgow Company started business and issued share capital, 60,000 shares with P100 par, for the following considerations: Cash - P500,000; Building with useful life of 15 years - P4,500,000; and Land - P1,500,000. An analysis of the bank statements showed total deposits, including the original cash investment, of P3,500,000. The balance in the bank statement on December 31 was P250,000 but there were checks amounting to P50,000 dated in December but not paid by the bank until January of next year. Cash on hand on December 31 was P125,000 including customers' deposit of P75,000. During the year, the entity borrowed P500,000 from the bank and repaid P125,000 and P25,000 interest. The proceeds of the loan were credited to the bank account of the entity. Disbursements paid in cash during the year were as follows: Utilities - P100,000; Salaries - P100,000; Supplies - P175,000; Taxes - P25,000; and…
please show formula
Please answer asap thank you!
Crane Inc. earns $400000 and pays cash dividends of $100000 during 2020. Blossom Corporation owns 60000 of the 200000 outstanding shares of Crane Inc.How much revenue from investment should Blossom report in 2020? $30000 $150000 $90000 $120000
Ma3. Investor owns 10% of Investee shares and has the ability to exert significant influence. In 2022 Investee reported net income of $800,000 and paid cash dividends of $120,000. 1.. If Investor uses the indirect method to present the activities operational: a. It will add $80,000 b. It will add $12,000 c. Will subtract $68,000 d. It will add $68,000 2. If Investor uses the direct method to present the activities operational: a. It will add $80,000 b. It will add $12,000 c. Will subtract $68,000 d. It will add $68,000
A shareholder owns 20,000 shares costing P 1,000,000. Subsequently, the shareholders receive P 4,000 shares in lieu of cash dividend of P 120 per share. The Market value is P 150.What is the amount of dividend income? a. Zerob. 3,000,000c. 2,400,000d. 600,000
Junior plc is a company that, during the year ended 31 December 2020, paid $25,000 debenture interest and paid an ordinary dividend of 8 pence per share on 1 million £1 ordinary shares. The retained profit for the year was $160,000. What was Junior plc's profit for the year? Select one: a. $80,000 b. $215,000 c. $240,000 d. $265,000
↑ 3 minutes ago ☆ Live Large Inc. had the following transactions involving non-strategic investments during 2023. 2023 Apr. 1 Paid $100,ese to buy a 90-day term deposit, $100,000 principal amount, 5.0%, dated April 1. There was a $50 transaction fee included in the above-noted payment amount. 12 Purchased 3,000 common shares of Blue Balloon Ltd. at $22.25. There was a $50 transaction fee included in the above-noted payment amount. June 9 Purchased 1,800 common shares of Purple Car Corp. at $49.50. There was a $50 transaction fee included in the above-noted payment amount. 20 Purchased 700 common shares of Yellow Tech Ltd. at $15.75. There was a $50 transaction fee included in the above-noted payment amount. July 1 Purchased for $67,412 a 7.0%, $65,000 Space Explore Inc. bond that matures in eight years when the market interest rate was 6.4%. There was a $50 transaction fee included in the above-noted payment amount. Interest is paid semiannually beginning December 31, 2023. Live Large…

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS