On March 31, 2018, Chow Brothers, Inc., bought 10% of KT Manufacturing's capital stock for $50 million. KT's net income for the year ended December 31, 2018, was $80 million. The fair value of the shares held by Chow was $35 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 for $30 million. Prepare the journal entries to record the sale.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “On March 31, 2018, Chow Brothers, Inc., bought 10% of KT Manufacturing's capital stock for $50 million. KT's net income for the year ended ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Suppose top-level management decides how to produce and market a new poroduct. Do you think the plans might change during the organization, leading, and controlling stages?
Answers (1)
Which of the following would tend to shift the supply of dollars in the market for foreign-currency exchange in the open-economy macroeconomic model to the right? a. the expected rate of return on U. S. assets rises b. the exchange rate falls c.
Answers (1)
MC Qu. 21 Milton Company has three departments occupying ... Milton Company has three departments occupying the following amount of floor space: Department 1 24,000 sq. ft. Department 2 11,800 sq. ft. Department 3 34,000 sq. ft.
Answers (1)
On January 1, 2018, the stockholders' equity section of Nance Corporation shows: Common stock ($2 par value) $1,200,000; paid-in capital in excess of par value $2,500,000; and retained earnings $1,000,000.
Answers (1)
a. A loan processing operation that processes an average of 4 loans per day. The operation has a design capacity of 12 loans per day and an effective capacity of 11 loans per day. (Round your answer to 1 decimal place.
Answers (1)
New Questions in Business
What is a great marketing strategy
Answers (2)
On January 1, 20X8, Package Company acquired 80 percent of Stamp Company's common stock for $280,000 cash.
Answers (1)
Tombert Decorating uses a job order cost system to collect the costs of its interior decorating business. Each client's consultation is treated as a separate job. Overhead is applied to each job based on the number of decorator hours incurred.
Answers (1)
Suppose that cookie producers create a positive externality equal to $2 per dozen. What is the relationship between the equilibrium quantity and the socially optimal quantity of cookies to be produced? a. They are equal. b.
Answers (1)
Comfort Cloud manufactures seats for airplanes. The company has the capacity to produce 100,000 seats per year, but currently produces and sells 75,000 seats per year.
Answers (2)