On January 1, 2018, Ashley Company purchased 2,000 of the 10,000 outstanding shares of Judd, Inc's common stock for $60,000. In 2018, Judd d dividend of $4 per share and reported net income of $80,000 for the year. On December 31, 2018, the market value of Judd stock has increased to If Ashley Company treats the Judd stock investment as a minority, passive investment and classifies it as trading securities, what amount should As of net income in 2018 from this investment? $8,000 O $14,000 O $6,000 O $16,000

On January 1, 2018, Ashley Company purchased 2,000 of the 10,000 outstanding shares of Judd, Inc's common stock for $60,000. In 2018, Judd d dividend of $4 per share and reported net income of $80,000 for the year. On December 31, 2018, the market value of Judd stock has increased to If Ashley Company treats the Judd stock investment as a minority, passive investment and classifies it as trading securities, what amount should As of net income in 2018 from this investment? $8,000 O $14,000 O $6,000 O $16,000

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter16: Retained Earnings And Earnings Per Share

Section: Chapter Questions

Problem 27E: Percy Company has 15,000 shares of common stock outstanding during all of 2019. It also has 2...

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Comprehensive The following are Farrell Corporations balance sheets as of December 31, 2019, and 2018, and the statement of income and retained earnings for the year ended December 31, 2019: Additional information: a. On January 2, 2019, Farrell sold equipment costing 45,000, with a book value of 24,000, for 19,000 cash. b. On April 2, 2019, Farrell issued 1,000 shares of common stock for 23,000 cash. c. On May 14, 2019, Farrell sold all of its treasury stock for 25,000 cash. d. On June 1, 2019, Farrell paid 50,000 to retire bonds with a face value (and book value) of 50,000. e. On July 2, 2019, Farrell purchased equipment for 63,000 cash. f. On December 31, 2019. land with a fair market value of 150,000 was purchased through the issuance of a long-term note in the amount of 150,000. The note bears interest at the rate of 15% and is due on December 31, 2021. g. Deferred taxes payable represent temporary differences relating to the use of accelerated depreciation methods for income tax reporting and the straight-line method for financial statement reporting. Required: 1. Prepare a spreadsheet to support a statement of cash flows for Farrell for the year ended December 31, 2019, based on the preceding information. 2. Prepare the statement of cash flows.
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