Noler Company owns 25% of Lauer Company. For the current year, Lauer reports net income of $180,000 and declares and pays a $50,000 cash dividend. Record Nolerâ€™s equity in Lauerâ€™s net income and the receipt of dividends from Lauer.
Answer to relevant QuestionsThe cost of the trading securities of Munoz Company at December 31, 2014, is $64,000. At December 31, 2014, the fair value of the securities is $59,000. Prepare the adjusting entry to record the securities at fair value.Mr. Taliaferro is studying for an accounting test and has developed the following questions about investments.1. What are three reasons why companies purchase investments in debt or stock securities?2. Why would a ...Presented below are two independent situations.1. Gambino Cosmetics acquired 10% of the 200,000 shares of common stock of Nevins Fashion at a total cost of $13 per share on March 18, 2014. On June 30, Nevins declared and ...The following securities are in Frederick Companyâ€™s portfolio of long-term available-for-sale securities at December 31, 2014. Cost1,000 shares of Willhite Corporation common stock ....... $52,0001,400 shares of ...Fegan Corporation has purchased two securities for its portfolio. The first is a stock investment in Plummer Corporation, one of its suppliers. Fegan purchased 10% of Plummer with the intention of holding it for a number of ...
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