On January 2, 2017, Alpha Company purchased 10,000 shares of the stock of Zulu Company,...
80.2K
Verified Solution
Link Copied!
Question
Accounting
On January 2, 2017, Alpha Company purchased 10,000 shares of the stock of Zulu Company, and did not obtain significant influence. The investment is intended as a long-term investment. The stock was purchased for $10 per share, and represents a 12% ownership stake. Zulu Company made $25,000 of net income in 2017, and paid dividends of $11,000 on December 15, 2017. On December 31, 2017, Zulu Company's stock was trading on the open market for $9 per share at the end of the year. Use this information to determine the dollar amounts that should be reported by Alpha Company during 2017 for the following items: 1. Dividend Income 2. Unrealized Gain/Loss - OIC (If a loss, enter the amount with dollar sign inside of brackets) 3. Available-for-Sales Securities
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!
