Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. francis, inc. acquired 40% of park's voting stock

Francis, Inc. acquired 40% of Park's voting stock on January 1, 2020, for $420,000. During...

50.1K

Verified Solution

Question

Accounting

Francis, Inc. acquired 40% of Park's voting stock on January 1, 2020, for $420,000. During 2020, Park earned $120,000 and paid dividends of $60,000. During 2021, Park earned $160,000 and paid dividends of $50,000 on April 1 and $40,000 on December 1. On July 1, 2021, Francis sold half of its stock in Park for $275,000 cash. What is the gain on sale of the investment if income was earned evenly throughout 2021?

A. $ 94,000

B. $ 47,000

C. $181,000

D. $ 39,000

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Find the value of x Round to the nearest WHOLE NUMBER X 4 y 6

Geometry
Q

What are corals? What is meant by a \"coral reef\"? How has climate change affected the Great...

Biology
Q

44 3 points eBook Ask Classification Genetics sturo

Biology
Q

What were the problems faced by France in the years after World War I France...

Biology
Q

Find the domain and range for the quadratic function with a vertex 10 0 if...

Calculus
Q

determine an organizations objectives and deciding how to accomplish them, a management function, is known...

Accounting
Q

A Corporation has two service departments, S1 and S2, and three production departments, P1, P2,...

Accounting
Q

Using the following information, prepare a bank reconciliation for Young Co. for August 31, 2019,...

Accounting
Q

Roma Corporation has computed the following unit costs for the year just ended: Direct Labor:...

Accounting
Q

This year, Sigma, Incorporated generated $636,000 income from its routine business operations. In addition, the...

Accounting
Q

For calendar year 2018, Stuart and Pamela Gibson file a joint return reflecting AGI of...

Accounting
Q

Pascarelli Corporation's inventory at the end of Year 2 was $140,000 and its inventory at...

Accounting