Question: On May 20 2015 Montero Co paid 1 000 000 to acquire
On May 20, 2015, Montero Co. paid $1,000,000 to acquire 25,000 common shares (10%) of ORD Corp. as a long-term investment. On August 5, 2016, Montero sold one-half of these shares for $625,000. What valuation method should be used to account for this stock investment? Prepare entries to record both the acquisition and the sale of these shares.
Answer to relevant QuestionsMontero Co. holds 100,000 common shares (40%) of ORD Corp. as a long-term investment. ORD Corp. paid a $100,000 dividend on November 1, 2015, and reported a net income of $700,000 for 2015. Prepare Montero’s entries to ...Prescrip Co. began operations in 2014. The cost and fair values for its long-term investments portfolio in available-for-sale securities are shown below. Prepare Prescrip’s December 31, 2015, adjusting entry to reflect any ...Stoll Co.’s long-term available-for-sale portfolio at December 31, 2014, consists of the following. Stoll enters into the following long-term investment transactions during year 2015. Jan. 29 Sold 3,500 shares of Company B ...Access the July 30, 2013, 10-K filing (for year-end June 30, 2013) of Microsoft (MSFT) at www.SEC.gov. Review its note 4, “Investments.” Required 1. How does the “cost-basis” total amount for its investments as of ...Refer to Samsung’s statement of cash flows in Appendix A. What investing activities result in cash outflows for the year ended December 31, 2013? List items and amounts.
Post your question