Kim Company bought 40% of the shares of Phelps, Inc., at the start of 2021....
50.1K
Verified Solution
Link Copied!
Question
Accounting
Kim Company bought 40% of the shares of Phelps, Inc., at the start of 2021. Kim paid $29 million for the shares. Forty percent of the book value of Phelps's net assets is $24 million, and the difference of $5 million is due to land that Phelps owns that has appreciated in value. During 2021, Phelps reported net income of $3 million and paid a cash dividend of $27 million At what amount does Kim carry the Phelps Investment on its balance sheet as of December 31, 2021? (Enter your answers in millions rounded to 2 decimal places (.e., 5,500,000 should be entered as 5.50).) Amount of mvestment reported in Kimbalance sheet million
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: Flex AI - Your personal assistant for all your inquiries!
