Question

In 2018, World Company bought 20,000 ordinary shares of Oxfam Corp. ordinary shares for $315,000, held...

In 2018, World Company bought 20,000 ordinary shares of Oxfam Corp. ordinary shares for $315,000, held for non-trading purposes. The fair value of these shares was $300,000 at December 31, 2018. The world Co. sold all of Oxfam shares for $18 per share on December 3, 2019, paying $14,000 for sale commissions. The World Co. should report a realized gain on the sale of shares in 2019 of

Select one:

a. $11,000

b. $25,000

c. $40,000

d. $31,000

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Prk Company has the following securities in its portfolio of trading equity investments on December 31,...
Prk Company has the following securities in its portfolio of trading equity investments on December 31, 2018:     Cost    Fair Value 6,000 ordinary shares of Kel Corp. $186,000 $166,800 12,000 ordinary shares of Ret    218,400    228,000 $404,400 $394,800 All of the investments had been purchased in 2018. In 2019, Prk completed the following investments transactions: May 31      Sold 6,000 ordinary shares of Kel Corp., @ $32 with commissions, taxes, and fees of $2,000. July 20      Bought 720 ordinary...
On January 1st, 2019, ABC Company bought 200,000 ordinary shares of NBK for $4,000,000. This investment...
On January 1st, 2019, ABC Company bought 200,000 ordinary shares of NBK for $4,000,000. This investment represents 30% of NBK ordinary shares. On December 31st, 2019, NBK announced a net income of $500,000 and paid dividends of $300,000. At the end of 2019, ABC's equity investment in NBK will grow by
On April 1, 2018, Milgard Corp bought a delivery truck at a cost of $20,000. The...
On April 1, 2018, Milgard Corp bought a delivery truck at a cost of $20,000. The truck has a 5-year useful life with an estimated salvage value of $5,000. Required: Using the straight-line method, compute the depreciation expense for December 31, 2018. Using the straight-line method, compute the depreciation expense for December 31, 2019. (c)       Using the straight-line method, what is the Accumulated Depreciation on December 31, 2018. Using the straight-line method, what is the Accumulated Depreciation on December 31,...
Grimm Company has 1,800,000 ordinary shares outstanding on December 31, 2018. An additional 150,000 ordinary shares...
Grimm Company has 1,800,000 ordinary shares outstanding on December 31, 2018. An additional 150,000 ordinary shares were issued on July 1, 2019, and 300,000 more on October 1, 2019. On January 1, 2019, Grimm issued 6,000, €1,000 face value, 8% convertible bonds. Each bond is convertible into 40 ordinary shares. The bonds are dilutive. No bonds were converted in 2019. What is the number of shares to be used in computing basic earnings per share and diluted earnings per share,...
Cayman Inc. bought 30% of Maya Company on January 1, 2018 for $450,000. The equity method...
Cayman Inc. bought 30% of Maya Company on January 1, 2018 for $450,000. The equity method of accounting was used. The book value and fair value of the net assets of Maya on that date were $1,500,000. Maya began supplying inventory to Cayman as follows: Cost to Maya Transfer Price Amount Held by Cayman at Year-End 2018 $ 30,000 $ 45,000 $9,000 2019 $ 48,000 $ 80,000 20,000 Maya reported net income of $100,000 in 2018 and $120,000 in 2019...
On March 31, 2018, Chow Brothers, Inc., bought 8% of KT Manufacturing’s capital stock for $50.3...
On March 31, 2018, Chow Brothers, Inc., bought 8% of KT Manufacturing’s capital stock for $50.3 million. KT’s net income for the year ended December 31, 2018, was $80.1 million. The fair value of the shares held by Chow was $35.2 million at December 31, 2018. KT did not declare or pay a dividend during 2018. Required: 1. Prepare all appropriate journal entries related to the investment during 2018. 2. Assume that Chow sold the stock on January 20, 2019...
On January 2, 2018, Sanborn Tobacco Inc. bought 10% of Jackson Industry’s capital stock for $104...
On January 2, 2018, Sanborn Tobacco Inc. bought 10% of Jackson Industry’s capital stock for $104 million. Jackson Industry’s net income for the year ended December 31, 2018, was $134 million. The fair value of the shares held by Sanborn was $126 million at December 31, 2018. During 2018, Jackson declared a dividend of $74 million. Required: 1. Prepare all appropriate journal entries related to the investment during 2018. 2. Assume that Sanborn sold the stock on January 2, 2019...
Korman Company has the following securities in its portfolio of equity securities on December 31, 2018:...
Korman Company has the following securities in its portfolio of equity securities on December 31, 2018: Cost Fair Value 5,000 shares of Thomas Corp., Common $151,000 $139,000 10,000 shares of Gant, Common 184,000 190,000 $335,000 $329,000 All of the securities had been purchased in 2018. In 2019, Korman completed the following securities transactions: March 1 Sold 5,000 shares of Thomas Corp., Common @ $32 less fees of $1,500. April 1 Bought 600 shares of Werth Stores, Common @ $45 plus...
Torrez Company has the following securities in its portfolio of equity securities on December 31, 2018:...
Torrez Company has the following securities in its portfolio of equity securities on December 31, 2018: Cost Fair Value 5,000 shares of Thompson Corp., Common $151,000 $155,000 10,000 shares of Gaye, Common 184,000 190,000 $335,000 $345,000 All of the securities had been purchased in 2018. In 2019, Torrez completed the following securities transactions: March 1 Sold 5,000 shares of Thompson Corp., Common @ $32 less fees of $1,500. April 1 Bought 600 shares of Welch Stores, Common @ $45 plus...
On January 2, 2018, Sanborn Tobacco Inc. bought 5% of Jackson Industry’s capital stock for $96...
On January 2, 2018, Sanborn Tobacco Inc. bought 5% of Jackson Industry’s capital stock for $96 million. Jackson Industry’s net income for the year ended December 31, 2018, was $126 million. The fair value of the shares held by Sanborn was $110 million at December 31, 2018. During 2018, Jackson declared a dividend of $66 million. Required: 1. Prepare all appropriate journal entries related to the investment during 2018. 2. Assume that Sanborn sold the stock on January 2, 2019...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT