On January 1, 2027, Kasson Company acquired 40% of IJKCompany's common stock for $183,000.Kasson Company's December 31, 2027 balance sheet reportedan Investment in IJK Company with a $216,780 balance.At December 31, 2028, Kasson Company sold one-fourth ofits investment in IJK Company. Kasson Company reporteda gain on the sale of the investment of $7,745.IJK Company reported net income and paid dividends asfollows:2028$136,000$ 16,0002027Net incomeTotal dividends paid$12,000Calculate the selling price of the investment sold onDecember 31, 2028.

IJK, is a public company which has its share available for retail investing. Therefore Kasson…

On January 1, 2027, Kasson Company acquired 40% of IJK Company's common stock for $183,000. Kasson Company's December 31, 2027 balance sheet repor an Investment in IJK Company with a $216,780 balance. At December 31, 2028, Kasson Company sold one-fourth c its investment in IJK Company. Kasson Company reportec a gain on the sale of the investment of $7,745. IJK Company reported net income and paid dividends as follows: 2028 $136,000 $ 16,000 2027 Net income Total dividends paid $12,000 Calculate the selling price of the investment sold on December 31, 2028.

On January 1, 2027, Kasson Company acquired 40% of IJK Company's common stock for $183,000. Kasson Company's December 31, 2027 balance sheet repor an Investment in IJK Company with a $216,780 balance. At December 31, 2028, Kasson Company sold one-fourth c its investment in IJK Company. Kasson Company reportec a gain on the sale of the investment of $7,745. IJK Company reported net income and paid dividends as follows: 2028 $136,000 $ 16,000 2027 Net income Total dividends paid $12,000 Calculate the selling price of the investment sold on December 31, 2028.

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

On January 1, 2027, Kasson Company acquired 40% of IJK
Company's common stock for $183,000.
Kasson Company's December 31, 2027 balance sheet reported
an Investment in IJK Company with a $216,780 balance.
At December 31, 2028, Kasson Company sold one-fourth of
its investment in IJK Company. Kasson Company reported
a gain on the sale of the investment of $7,745.
IJK Company reported net income and paid dividends as
follows:
2028
$136,000
$ 16,000
2027
Net income
Total dividends paid
$12,000
Calculate the selling price of the investment sold on
December 31, 2028.

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