Jackson Moving & Storage Co. paid $160,000 for 25% of the common stock of Sellers Co. Sellers earned a net income of $50,000 and paid dividends of $35,000. The carrying value of Jackson's investment in Sellers is: A. $163,750 B. $210,000 C. $175,000 D. $160,000

Jackson Moving & Storage Co. paid $160,000 for 25% of the common stock of Sellers Co. Sellers earned a net income of $50,000 and paid dividends of $35,000. The carrying value of Jackson's investment in Sellers is: A. $163,750 B. $210,000 C. $175,000 D. $160,000

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter14: Statement Of Cash Flows

Section: Chapter Questions

Problem 32BEB: During 20X2, Evans Company had the following transactions: a. Cash dividends of 6,000 were paid. b....

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During 20X2, Evans Company had the following transactions: a. Cash dividends of 6,000 were paid. b. Equipment was sold for 2,880. It had an original cost of 10,800 and a book value of 5,400. The loss is included in operating expenses. c. Land with a fair market value of 15,000 was acquired by issuing common stock with a par value of 3,600. d. One thousand shares of preferred stock (no par) were sold for 4.20 per share. Evans provided the following income statement (for 20X2) and comparative balance sheets: Required: Prepare a worksheet for Evans Company.
During 20X2, Norton Company had the following transactions: a. Cash dividends of 20,000 were paid. b. Equipment was sold for 9,600. It had an original cost of 36,000 and a book value of 18,000. The loss is included in operating expenses. c. Land with a fair market value of 50,000 was acquired by issuing common stock with a par value of 12,000. d. One thousand shares of preferred stock (no par) were sold for 14 per share. Norton provided the following income statement (for 20X2) and comparative balance sheets: Required: Prepare a worksheet for Norton Company.
During 20X5, X co. had the following income and expenses: Gross income from operations $3,000,000 Business expenses <1,400,000> Dividends received from Y co. (32% owned by X co.) 400,000 Capital gains 150,000 Capital loss carry forward <183,000> Net operating loss carry forward <25,000> a. Determine X co.’s dividends received deduction in 20X5? b. Determine X co.’s dividends received deduction in 20X5 assuming that there was no NOL carry forward and X co.’s business expenses were: (i) $3,050,000 or (ii) $3,200,000
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Question: Parent Co. invested $1,070,000 in Sub Co. for 25% of its outstanding stock. Sub Co. pays out 40% of net income in dividends each year. Use the information in the following T- account for the investment in Sub to answer the following questions. Investment in Sub Co. 1,070,000 130,000 52,000 (a) How much was Parent Co.'s share of Sub Co.'s net income for the year? (b) How much was Parent Co.'s share of Sub Co.'s dividends for the year? (c) What was Sub Co.'s total net income for the year? (d) What was Sub Co.'s total dividends for the year?
You have been given the following information for Corky's Bedding Corp.: a. Net sales = $12,550,000. b. Cost of goods sold = $9,100,000. c. Other operating expenses = $270,000. d. Addition to retained earnings = $1,050,000. e. Dividends paid to preferred and common stockholders = $385,000. f. Interest expense = $960,000, all of which is tax deductible. 4 The firm's tax rate is 21 percent. Calculate the depreciation expense for Corky's Bedding Corp. (Round your answer to the nearest dollar amount.) Depreciation expense
Pillow Company is purchasing an 80% interest in the common stock of Sleep Company. Sleep’s balance sheet amounts at book and fair values are as follows:Account Book Value Fair ValueCurrent Assets . . . . . . . . . . . . $ 200,000 $ 250,000Fixed Assets . . . . . . . . . . . . . . 350,000 800,000Liabilities . . . . . . . . . . . . . . . . (200,000) (200,000)Use valuation analysis schedules to determine what adjustments to recorded values of Sleep Company’s accounts will be made in the consolidation process (including the creation of new accounts), if the price paid for the 80% is:a. $800,000.b. $600,000.
Pillow Company is purchasing a 100% interest in the common stock of Sleep Company. Sleep’s balance sheet amounts at book and fair values are as follows: Account Book Value Fair Value Current Assets . . . . . . . . . . . . $ 200,000 $ 250,000 Fixed Assets . . . . . . . . . . . . . . . . 350,000 800,000 Liabilities . . . . . . . . . . . . . . . . . .(200,000) (200,000) Use valuation analysis schedules to determine what adjustments to recorded values of Sleep Company’s accounts will be made in the consolidation process (including the creation of new accounts), if the price paid for the 100% is: a. $1,000,000. b. $500,000.
3.During 20X6, X co. had the following income and expenses: Gross income from operations $1,000,000 Business expenses <400,000> Dividends received from Y co. (32% owned by X co.) 200,000 Capital gains 50,000 Capital loss carry forward <65,000> Net operating loss carry forward 100,000 a. Determine X co.’s dividends received deduction in 20X6? b. Determine X co.’s dividends received deduction in 20X6 assuming that there was no NOL carry forward and X co.’s business expenses were:(i) $1,030,000 or (ii) $1,100,000.
ne profit. A&B Co. started operations on April 1, 20x1. Mr. A, a partner in A&B Co., is entitled to 6% interest on the weighted average balance of his capital account. Mr. A's ledger shows the following: A, Capital Ref. Date Debit Credit Balance 100,000.00 79,000.00 87,000.00 001 100,000.00 April 1, 20x1 June 30, 20x1 September 30, 20x1 December 1, 20x1 (98 21,000.00 146 8,000.00 211 4,000.00 83,000.00 Requirement: Compute for the interest on Mr. A's weighted average capital balance.