M.T. Glass, Inc. purchased the following investments on January 1, 2028: 1. 21,000 shares (representing 42%) of AA Company stock for $546,000 2. 18,000 shares (representing 9%) of ZZ Company stock for $306,000 AA Company and ZZ Company reported the following information for the years 2028 and 2029: 2028: Net income Total dividends paid Market value at Dec 31 2029: Net income Total dividends paid Market value at Dec 31 AA Company $140,000 $ 78,000 $33 per share AA Company $210,000 $ 90,000 $35 per share ZZ Company $225,000 $ 53,000 $22 per share ZZ Company $280,000 $125,000 $23 per share Calculate the total investments shown in M.T. Glass, Inc.'s December 31, 2028 balance sheet (i.e., the balance in the Investment in AA Company plus the balance in the Investment in ZZ Company).

M.T. Glass, Inc. purchased the following investments on January 1, 2028: 1. 21,000 shares (representing 42%) of AA Company stock for $546,000 2. 18,000 shares (representing 9%) of ZZ Company stock for $306,000 AA Company and ZZ Company reported the following information for the years 2028 and 2029: 2028: Net income Total dividends paid Market value at Dec 31 2029: Net income Total dividends paid Market value at Dec 31 AA Company $140,000 $ 78,000 $33 per share AA Company $210,000 $ 90,000 $35 per share ZZ Company $225,000 $ 53,000 $22 per share ZZ Company $280,000 $125,000 $23 per share Calculate the total investments shown in M.T. Glass, Inc.'s December 31, 2028 balance sheet (i.e., the balance in the Investment in AA Company plus the balance in the Investment in ZZ Company).

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.

Question

M.T. Glass, Inc. purchased the following investments on
January 1, 2028:
1. 21,000 shares (representing 42%) of AA Company stock
for $546,000
2. 18,000 shares (representing 9%) of ZZ Company stock
for $306,000
AA Company and ZZ Company reported the following information
for the years 2028 and 2029:
2028:
Net income
Total dividends paid
Market value at Dec 31
2029:
Net income
Total dividends paid
Market value at Dec 31
AA Company
$140,000
$ 78,000
$33 per share
AA Company
$210,000
$ 90,000
$35 per share
ZZ Company
$225,000
$ 53,000
$22 per share
ZZ Company
$280,000
$125,000
$23 per share
Calculate the total investments shown in M.T. Glass, Inc.'s
December 31, 2028 balance sheet (i.e., the balance in the
Investment in AA Company plus the balance in the Investment
in ZZ Company).

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