Question

Crane Inc. earns $420000 and pays cash dividends of $110000 during 2020. Wildhorse Corporation owns 67200...

Crane Inc. earns $420000 and pays cash dividends of $110000 during 2020. Wildhorse Corporation owns 67200 of the 210000 outstanding shares of Crane Inc.

How much revenue from investment should Wildhorse report in 2020?

$169600

$35200

$99200

$134400

On August 1, Sunland Company buys 2200 shares of ABD common stock for $79750 cash. On December 1, the stock investments are sold for $82500 in cash. Which of the following are the correct journal entries to record for the purchase and sale of the common stock?

On January 1, 2020, Waterway Corporation purchased 34% of the common stock outstanding of Carla Vista Corporation for $720000. During 2020, Carla Vista Corporation reported net income of $210000 and paid cash dividends of $100000. The balance of the Stock Investments—Carla Vista account on the books of Waterway Corporation at December 31, 2020 is
$686000.

$720000.

$791400.

$757400.

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Homework Answers

Answer #1
1)
particulars amuont
total outstanding shares 2,10,000.00
shares owned by wild horse 67,200.00
invest by wild horse 32%
dividenedd paid 1,10,000.00
income from dividend 35,200.00
(total divineded paid * % of invt held by wild hosrse )
B) 35200
2) common stock purchase 34%
common stock purchase value 7,20,000.00
B) 720,000
at acquisiton the inter corporate invt are valued at fair value
ie 720,000
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