Business, 19.03.2020 22:09 arixox

On January 1, Jennie Corporation purchased 30% of the common stock of Katlee Company for $500,000. The following information relates to Katlee at the date of acquisition. Cash $ 50,000 Accounts receivable (net) 250,000 Building (net) 700,000 Land 100,000 Liabilities 100,000 Additional information relating to the purchase appears below. Jennie has the ability to exercise significant influence over Katlee and did not elect the fair value option. Both the carrying amount and the fair value are the same for receivables, land, and liabilities. The fair value of the building is $900,000. Jennie depreciates its assets on a straight-line basis. Both tangible and intangible assets are amortized over 10 years. For the current year, Katlee had net income of $400,000 and declared and paid dividends of $100,000. What amount should Jennie report for its investment in Katlee at the end of the current year?

Answers: 3

Show answers

Another question on Business

Business, 22.06.2019 02:20

Neon light company of kansas city ships lamps and lighting appliances throughout the country. ms. neon has determined that through the establishment of local collection centers around the country, she can speed up the collection of payments by one and one-half days. furthermore, the cash management department of her bank has indicated to her that she can defer her payments on her accounts by one-half day without affecting suppliers. the bank has a remote disbursement center in florida. a. if neon light company has $2.90 million per day in collections and $1.18 million per day in disbursements, how many dollars will the cash management system free up?

Answers: 2

Answer

Business, 22.06.2019 04:00

Match the type of agreements to their descriptions. will trust living will prenuptial agreement

Answers: 2

Answer

Business, 22.06.2019 11:50

Which of the following does not offer an opportunity for timely content? evergreen content news alerts content that suits seasonal consumption patterns content that matches a situational trigger content that addresses urgent pain points

Answers: 2

Answer

Business, 22.06.2019 13:10

You have recently been made a department head of the new regional office. in getting to know your departmental staff, you have noticed that one of your inexperienced employees is not following through on assigned tasks. she is enthused about her new job and wants to get ahead in the organization. which alternative represents the most effective leadership style: a. discuss the lack of follow-through with her and explore thealternative ways this problem can be solved. b. specify what she must do to complete the tasks but incorporate any suggestions she may have. c. define the steps necessary for her to complete the assigned tasks and monitor her performance frequently. d. let her know about the lack of follow-through and give hermore time to improve her performance.

Answers: 1

Answer

You know the right answer?

On January 1, Jennie Corporation purchased 30% of the common stock of Katlee Company for $500,000. T...

Questions