Pail Corporation acquired 80 percent of the common shares and 70 percent of the preferred shares of Shovel Corporation at underlying book value on January 1, 20X9. At that date, the fair value of the noncontrolling interest in Shovel's common stock was equal to 20 percent of the book value of its common stock. Shovel's balance sheet at the time of acquisition contained the following balances: Total Assets$600,000 Total Liabilities$90,000 Preferred Stock 100,000 Common Stock 150,000 Retained Earnings 260,000 Total Assets$600,000 Total Liabilities and Equities$600,000 ?The preferred shares are cumulative and have a 10 percent annual dividend rate and are four years in arrears on January 1, 20X9. All of the $5 par value preferred shares are
callable at $6 per share. During 20X9, Shovel reported net income of $100,000 and paid no dividends.Based on the information provided, what is the book value of the common stock on January 1, 20X9?
A. $360,000
B. $390,000
C. $350,000
D. $410,000
Answer: C
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On December 1, Milton Company borrowed $300,000, at 8% annual interest, from the Tennessee National Bank. Interest is paid when the loan matures one year from the issue date. What is the adjusting entry for accruing interest that Milton would need to make on December 31, the calendar year-end?
A. debit Interest Expense, $4,000; credit Interest Payable, $4,000. B. debit Interest Payable, $2,000; credit Interest Expense, $2,000. C. debit Interest Expense, $2,000; credit Cash, $2,000. D. debit Interest Expense, $24,000; credit Interest Payable, $24,000. E. debit Interest Expense, $2,000; credit Interest Payable, $2,000.
Corporate taxes and tariffs are particular transfer-pricing concerns of
a. investment centers. b. multinational corporations. c. division managers. d. domestic corporations involved in importing foreign goods.
The ____________________ value of a set of data is that point that separates the higher values from the lower values.
Fill in the blank(s) with the appropriate word(s).
The Mature Generation consists of consumers who are typically more loyal and prefer not to shop online because they may not be very computer savvy.
Answer the following statement true (T) or false (F)