On 1 January 2016, WILTON Company purchased 6,000 shares in CENTRE Company (for trading) for $80...
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On 1 January 2016, WILTON Company purchased 6,000 shares in CENTRE Company (for trading) for $80 per share. CENTRE Company paid a Cash Dividend of $6 per share in 2016, $8 per share in 2017 and $10 per share in 2018. WILTON Company owns less than 3% of the shares in CENTRE Company and WILTON Company has no other Equity Investments. Prior to 2016, WILTON Company never held shares or debt investments for trading, Please note the following information also: • At the end of 2016, shares in CENTRE Company trade at $25 per share. • At the end of 2017, shares in CENTRE Company trade at $130 per share. • At the end of 2018, shares in CENTRE Company trade at $60 per share MCQ By how much is the balance in Retained Earnings at the end of 2018 higher or lower than it would otherwise be if WILTON Company had NEVER purchased shares in CENTRE Company (note that WILTON Company does not pay dividends) Select one: Ⓒa. $103,000 lower b. $27,000 lower c. None of these answers d. $22,000 higher Ⓒe. $24,000 higher On 1 January 2016, WILTON Company purchased 6,000 shares in CENTRE Company (for trading) for $80 per share. CENTRE Company paid a Cash Dividend of $6 per share in 2016, $8 per share in 2017 and $10 per share in 2018. WILTON Company owns less than 3% of the shares in CENTRE Company and WILTON Company has no other Equity Investments. Prior to 2016, WILTON Company never held shares or debt investments for trading, Please note the following information also: • At the end of 2016, shares in CENTRE Company trade at $25 per share. • At the end of 2017, shares in CENTRE Company trade at $130 per share. • At the end of 2018, shares in CENTRE Company trade at $60 per share MCQ By how much is the balance in Retained Earnings at the end of 2018 higher or lower than it would otherwise be if WILTON Company had NEVER purchased shares in CENTRE Company (note that WILTON Company does not pay dividends) Select one: Ⓒa. $103,000 lower b. $27,000 lower c. None of these answers d. $22,000 higher Ⓒe. $24,000 higher
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Centre company has paid a dividend of 66000 36000 in 2016 86000 48... View the full answer
Related Book For
Advanced Accounting
ISBN: 978-0538480284
11th edition
Authors: Paul M. Fischer, William J. Tayler, Rita H. Cheng
Posted Date:
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