Elite Services, Inc. pays $1,350,000 to acquire 38% of voting stock of Grey Investments, Inc. on March 5, 2017. Which of the following is the correct journal entry for the transaction?
A)
Long-term Investments-Grey Investments, Inc. 1,350,000
Cash 1,350,000
B)
Long-term Investments-Available-for-Sale 1,350,000
Cash 1,350,000
C)
Cash 1,350,000
Long-term Investments-Available-for-Sale 1,350,000
D)
Cash 1,350,000
Long-term Investments-Grey Investments, Inc. 1,350,000
A
You might also like to view...
In which of the following cases is building a database worthwhile for the company?
A) where the product is a once-in-a-lifetime purchase B) where customers show little loyalty to a brand C) where the company has a long relationship with its customers D) where the unit sale is very small E) where the cost of gathering the information is high
The moral standards expected by a society are called
A. folkways. B. religious principles. C. ethics. D. cultural values. E. social norms.
An agreement whereby the parties agree to accept something different in satisfaction of the original contract is called a restitution.
Answer the following statement true (T) or false (F)
Bob is a massage therapist working for a company with three employees. After a year, he asks to take a vacation only to find out that vacations are not offered by the company. Bob argues that he is due 2 weeks of vacation based on customary vacations received elsewhere. Discuss the legal, practical, and ethical issues.
What will be an ideal response?