Fill in the dollar changes caused in the Investment account and Dividend Revenue or Investment Revenue account
Question:
1. At the beginning of Year 1, Crane bought 25% of Hudson's common stock at its book value. Total book value of all Hudson's common stock was $800,000 on this date.
2. During Year 1, Hudson reported $60,000 of net income and paid $30,000 of dividends.
3. During Year 2, Hudson reported $30,000 of net income and paid $20,000 of dividends.
4. During Year 3, Hudson reported a net loss of $10,000 and paid $4,000 of dividends.
5. Indicate the Year 3 ending balance in the Investment account, and cumulative totals for Years 1, 2, and 3 for dividend revenue and investment revenue.
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...
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Related Book For
Intermediate Accounting
ISBN: 978-0324312140
16th Edition
Authors: James D. Stice, Earl K. Stice, Fred Skousen
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