Solved

Thomas Inc

Question 67

Essay

Thomas Inc. had the following stockholders' equity accounts as of January 1, 2021: Thomas Inc. had the following stockholders' equity accounts as of January 1, 2021: Kuried Co. acquired all of the voting common stock of Thomas on January 1, 2021, for $20,656,000. The preferred stock remained in the hands of outside parties and had a fair value of $3,060,000. A database valued at $656,000 was recognized and amortized over five years. During 2021, Thomas reported earning $630,000 in net income and paid $504,000 in total cash dividends. Kuried used the equity method to account for this investment.What was Kuried's balance in the Investment in Thomas Inc. account as of December 31, 2021? Kuried Co. acquired all of the voting common stock of Thomas on January 1, 2021, for $20,656,000. The preferred stock remained in the hands of outside parties and had a fair value of $3,060,000. A database valued at $656,000 was recognized and amortized over five years. During 2021, Thomas reported earning $630,000 in net income and paid $504,000 in total cash dividends. Kuried used the equity method to account for this investment.What was Kuried's balance in the Investment in Thomas Inc. account as of December 31, 2021?

Correct Answer:

verifed

Verified

blured image Investmen...

View Answer

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q62: Panton, Inc. acquired 18,000 shares of Glotfelty

Q63: Which of the following statements is true

Q64: The following information has been taken from

Q65: The balance sheets of Butler, Inc. and

Q66: Anderson, Inc. has owned 70% of its

Q68: Regency Corp. recently acquired $500,000 of the

Q69: Which of the following variable interests entitles

Q70: Fargus Corporation owned 51% of the voting

Q71: Akers Co. owned 8,000 shares (80%) of

Q72: Mohan owned all of Beatty Inc. Although