Essay
On January 1, 20X4, as a long-term investment in available-for-sale securities, John Company purchased 1,000 of the 10,000 outstanding voting common shares of Wayne Corporation at $9 per share. Wayne reported 20X4 net earnings of $30,000 and declared and paid cash dividends of $20,000. The market price of the Wayne stock at the end of 20X4 was $10 per share. Calculate the carrying value of John's investment at the end of 20X4.
Correct Answer:
Verified
1,000/10,000 = 10%; ...View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Correct Answer:
Verified
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q36: Ocean Corporation owns 30% of Woods Corp.for
Q79: If a bond is bought at a
Q85: During 20X4, the following items were
Q86: Idaho Company purchased 30% of the outstanding
Q88: On January 2, 20X0, Parent Company purchased
Q90: Gilman Company purchased 100,000 of the
Q91: Rye Company purchased 15% of Lena Company's
Q92: Heartfelt Company owns a 40% interest in
Q93: On January 1, 20X4, Entertainment Company acquired
Q94: Chapman Inc., owns 35% of Dawson