USA Help showing affect of transaction?

Joined
Mar 2, 2016
Messages
1
Reaction score
0
Country
United States
Let's say company 1 bought common stock in company 2 for $400,000. In current year, company 2 had net income of $50,000 and paid dividend of $32,000. The market value of investment in company 2 was $410,000 at the end of year.

a) let's say that company 1 owns 10% of the shares in company 2 and would like the investment to be available for sale securities. Using balance equations, show the effects of transactions above on the accounts of company 1.

b) Let's say company 1 owns 25% of the shares in company 2. Using balance equations, show the effects of transactions above on the accounts of company 1.
 

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Members online

No members online now.

Forum statistics

Threads
11,672
Messages
27,648
Members
21,493
Latest member
OnlineDigitalMarketingCou

Latest Threads

Top