What percentage of its Investment in 123 was sold by ABC?
ABC Inc. purchased 35,000 voting shares out of 123 Inc.'s 50,000 outstanding voting shares for $350,000 on January 1, 2018. On the date of acquisition, 123's common shares and retained earnings were valued at $120,000 and $180,000, respectively. 123's book values approximated its fair values on the acquisition date with the exception of a patent and a trademark, neither of which had been previously recorded. The fair values of the patent and trademark on the date of acquisition were $30,000 and $20,000 respectively.
On January 2, 2018, ABC sold 14,000 shares of 123 on the open market for $98,000.
ABC Inc. uses the equity method to account for its investment in 123 Inc.
A) 28% B) 14% C) 40% D) 21%
C) 40%
You might also like to view...
The accounts receivable clerk destroys all invoices for sales made to members of her family and does not record the sale in the accounts receivable subsidiary ledger. Which procedure will not detect this fraud?
a. prenumber and sequence check all invoices b. reconcile the accounts receivable control to the accounts receivable subsidiary ledger c. prepare monthly customer statements d. reconcile total sales on account to the debits in the accounts receivable subsidiary ledger
The process of scrubbing raw data to remove extraneous data and other noise in order to increase its usefulness is known as extract, transform and load.
Answer the following statement true (T) or false (F)
Scenario statements typically include a fill-in-the-blank section, a complete script to be read verbatim by a spokesperson, and a list of agencies likely to respond during a specific type of crisis
Indicate whether the statement is true or false
How would one classify the concept of self-esteem?
a. It directly correlates to self-regard. b. It directly correlates to self-concept. c. It directly correlates to individual sameness. d. It directly correlates to the awareness of others.