If Ashley Company accounts for the investment as a minority, passive investment and classifies it as a available-for-sale security the investment will appear in the December 31, 2010 balance sheet at what amount?
a. $60,000
b. $65,000
c. $64,000
d. $75,000
C
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On May 1, Knox Inc purchases $100,000 of 10-year, 6% Madison Corporation bonds dated March 1 at 100 plus accrued interest. What entry would Knox record when purchasing the bonds?
The Financial Accounting Standards Board (FASB) has expressed a strong preference for the indirect method, but allows companies to use the direct method in calculating the cash flow from operating activities
a. True b. False Indicate whether the statement is true or false
Which of the following pairs of accounts could not be included in the same adjusting entry?
a. Unearned Revenue and Revenue from Services b. Wages Expense and Wages Payable c. Interest Expense and Interest Receivable d. Rent Expense and Rent Payable
Which of the following would be classified as a prevention cost on a quality cost report?
A. Supervision of testing and inspection activities. B. Liability arising from defective products. C. Net cost of spoilage. D. Technical support provided to suppliers.