Question: 1 . On January 1 , 2 0 2 0 Malinois Company purchased 2 5 % of Little Inc. as a long - term investment

1. On January 1,2020 Malinois Company purchased 25% of Little Inc. as a long-term investment at a cost of $98,000. This investment gave Malinois the ability to exercise significant influence over Littles operations. During 2020 Little earned net income of $50,000 and paid total cash dividends of $3,000. December 31 the fair value of this investment was $102,000. At what amount would Malinois report their investment in Little on their December 31,2020 balance sheet?
A. $98,000
B. $102,000
C. $109,750
D. $107,500

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Q:

The condensed comparative statements of Uranium Mining Corporation follow: Assets Cash 2019 Uranium Mining Corporation Income Statement ($000) For Years Ended December 31 2018 2017 2016 2015 2014...

Q:

13) Becky Corp. had net sales (all on account) in 2019 of $1,800,000. At December 31, 2019, before adjusting entries, the balances in selected accounts were: accounts receivable $750,000 debit, and...

Q:

On March 3 1 2 0 2 4 a company purchased the right to remove gravel froOn March 3 1 2 0 2 4 a company purchased the right to remove gravel from an old rock quarry The gravel is to be sold as roadbed...

Q:

Case Summary Read the Discussion Assignment 1-1 on p.24 of the text Winning and Longevity. Select a health care entity to focus on, this could be a clinic or hospital of your choosing. Apply the case...

Q:

2-) Required information (TA furtlewig iteratures to the caiyaatikamy Cemetitie heefr202 - 2020, a statement of me : 2021, - et formatie sesenting resef Res, Inc. are provides scien. La M 3.10 TE ....

Q:

Hello, Can someone please help me with this assignment? Please see attached file. Multiple Choice 1. On January 1 of the current year, Tire Company enters into a five-year lease agreement for...

Q:

Hello, Can someone please help me with this assignment? Please see attached file. Multiple Choice 1. On January 1 of the current year, Tire Company enters into a five-year lease agreement for...

Q:

Hello, Can someone please help me with this assignment? Please see attached file. Multiple Choice 1. On January 1 of the current year, Tire Company enters into a five-year lease agreement for...

Q:

Cash flow adequacy ratio formula: Cash reinvestment ratio formula: For the year 2020: Total current asset is 397,391,340 while total current liabilities 141,114,784 1. Find cash flow adequacy ratio...

Q:

this is the second part of the problem i already got the first part answered, which is the journap entries. i just need to know how to prepare the income statement for the income date data and...

Q:

Use the Vision Consulting Inc. financial statements and supplementary information given below to prepare a statement of cash flows for the year ended December 31, 2014, using the indirect method....

Q:

Assume that a firm has the following activities and associated cost behaviors: Activities Cost Behavior Assembling components direct labor hour Number of setups Receiving hours $10 per $100 per setup...

Q:

1. explain write-offs to the allowance account in simple terms in one sentence. 2. explain estimating uncollectibles in simple terms in one sentence.

Q:

Where is treasurey stock reported on a corporations balance sheet

Q:

Determine the major differences between U.S. GAAP and IFRS disclosure reporting requirements related to each separately reportable operating segment. Next, give your opinion as to whether either U.S....