Penney Corporation acquires 30% of the outstanding voting common shares of the Instat Corporation for $600,000 . Penney Corporation acquires the investment in Instat Corporation by buying previously issued shares of Instat Corporation from other investors. Between the time of the acquisition and the end of Penney Corporation's next accounting period, Instat Corporation reports earnings of $80,000
. Penney Corporation records the following journal entry:
a. Equity in Earnings of Affiliate . . . . . . . . . . . . . . . . . . . . . . . . . . 24,000
Investment in Stock of Instat Corporation . . . . . . . . . . . . . . . . . .24,000
b. Investment in Stock of Instat Corporation . . . . . . . . . . . . . . . 24,000
Equity in Earnings of Affiliate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24,000
c. Equity in Earnings of Affiliate . . . . . . . . . . . . . . . . . . . . . . . . . . 80,000
Investment in Stock of Instat Corporation . . . . . . . . . . . . . . . . . 80,000
d. Investment in Stock of Instat Corporation . . . . . . . . . . . . . . . 80,000
Equity in Earnings of Affiliate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80,000
e. Investment in Stock of Instat Corporation . . . . . . . . . . . . . . . 24,000
Investment Revenue. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24,000
B
You might also like to view...
The acronym PMBoK stands for:
A) The Personal Management Before or Kernel. B) The Project Movement Behind our Kernel. C) The Project Management Body of Knowledge. D) The Performance Measurement Body of Knowledge.
What three-step procedure does an agency follow in order to promulgate rules or regulations, and in what order is the procedure performed?
a. (1) Evaluation of comments (2) notice to the public (3) adoption. b. (1) Notice to the public (2) evaluation of comments (3) adoption. c. (1) Voting (2) evaluation of comments (3) adoption. d. (1) Adoption (2) notice (3) evaluation of results.
In general, interest rates on short-term debt are higher than interest rates on long-term debt
because the borrower has less time to repay the loans, and hence the risk to the lender is higher. Indicate whether the statement is true or false
All of the following are elements of attachment except: ______
A) the filing of a financing statement B) a security agreement C)value received by the debtor D)the debtor has rights in the collateral