On January 1, 2015, Barry Corporation paid $800,000 for 100,000 shares of Oak Company's common stock, which represents 40% of Oak's outstanding common stock. For the year ending December 31, 2015, Oak reported net income of $200,000 and paid cash dividends of $60,000. Barry should report the investment in Oak Company on its balance sheet at December 31, 2015 at:
A.$800,000.
B.$744,000.
C.$824,000.
D.$856,000.
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On January 1, 2014, Benson Corporation paid $800,000 to purchase 40% of the outstanding stock of Kroger Company. Kroger Company reported net income of $200,000 for the year ending December 31, 2014 and paid cash dividends of $60,000 during 2014. On January 1, 2015, Benson Corporation sells its entire investment in Kroger Company for $1,100,000. Benson Corporation will report a(n):
A.realized gain on the sale of $300,000.
B.unrealized gain on the sale of $300,000.
C.realized gain on the sale of $244,000.
D.unrealized gain on the sale of $244,000.
The Ashley Corporation purchased $600,000 of 4%, 5-year bonds at 97 on January 1, 2014. Interest is to be paid semiannually on January 1 and July 1. This is a held-to-maturity investment. This company uses the straight-line method to amortize any premiums or discounts. What was the purchase price of these bonds?
A. $600,000
B. $540,000
C. $582,000
D. $618,000
The Ashley Corporation purchased $600,000 of 4%, 5-year bonds at 97 on January 1, 2014. Interest is to be paid semiannually on January 1 and July 1. This is a held-to-maturity investment. This company uses the straight-line method to amortize any premiums or discounts.What is the amount of Interest Revenue recorded on July 1, 2014?
A. $24,000
B. $13,800
C. $10,200
D. $12,000
The Ashley Corporation purchased $600,000 of 4%, 5-year bonds at 97 on January 1, 2014. Interest is to be paid semiannually on January 1 and July 1. This is a held-to-maturity investment. This company uses the straight-line method to amortize any premiums or discounts.What is the carrying amount of the bond on July 1, 2014?
A. $583,800
B. $582,000
C. $580,200
D. $600,000