On January 1, 2018, Nana Company paid $100,000 for 6,200 shares of Papa Company common stock....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
On January 1, 2018, Nana Company paid $100,000 for 6,200 shares of Papa Company common stock. The ownership in Papa Company is 10%. Nana Company does not have significant influence over Papa Company. Papa reported net income of $51,000 for the year ended December 31, 2018. The fair value of the Papa stock on that date was $59 per share. What amount will be reported in the balance sheet of Nana Company for the investment in Papa at December 31, 2018? On January 1, 2018, Nana Company paid $100,000 for 6,200 shares of Papa Company common stock. The ownership in Papa Company is 10%. Nana Company does not have significant influence over Papa Company. Papa reported net income of $51,000 for the year ended December 31, 2018. The fair value of the Papa stock on that date was $59 per share. What amount will be reported in the balance sheet of Nana Company for the investment in Papa at December 31, 2018?
Expert Answer:
Answer rating: 100% (QA)
The initial cost of Nana Companys investment in Papa Company was 100000 for 6200 shares which ... View the full answer
Related Book For
Accounting Principles Part 3
ISBN: 978-1118306802
6th Canadian edition Volume 1
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Kinnear, Joan E. Barlow
Posted Date:
Students also viewed these accounting questions
-
What amount will be required to purchase a 20-year annuity paying $2500 at the end of each month, if the annuity provides a return of 6.75% compounded annually?
-
What amount will be required to purchase, on a man's 40th birthday, an annuity to provide him with 30 equal semiannual payments of $1000 each, the first to be received on his 50th birthday, if...
-
What amount will be required to purchase, on a man's 40th birthday, an annuity to provide him with 30 equal semiannual payments of $1000 each, the first to be received on his 50th birthday, if...
-
Peter, Emma, and Kyler played chess with each other. Peter won 4 games and lost 2 games. Emma won 3 games and lost 3 games. If Kyler lost 3 games, how many games did he win?
-
National Mutual Insurance Company is a District of Columbia corporation. It brought a diversity action in the U.S. District Court of Maryland against Tidewater Transfer Company, a Virginia...
-
What is the total load in kW for the following single dwelling air-conditioning unit? Air conditioner compressor - 230 vac, 13.5 amperes Condenser fan motor - 230 vac, 2.5 amperes Blower motor - 120...
-
Construct a binomial tree \(\left(u=\frac{1}{d} ight)\) with three quarters for an asset with present value \(\$ 100\). If \(r=0.1\) and \(\sigma=0.4\), using the tree compute the prices of: (a) A...
-
In 2011, Alliant Corporation acquired Centerpoint Inc. for $300 million, of which $50 million was allocated to goodwill . At the end of 2013, management has provided the following information for a...
-
At the end of the first year of operations (December 31, 2021), the following financial data for APEC Aerospace Corporation are available: Accounts Payable Accounts Receivable Cash $ 33,630 10,000...
-
Hannah Turnbull manages Elegant Suites, a hotel in a small town 10 miles inland from Florida's beautiful gulf coast. Elegant Suites has a capacity of 320 suites and offers a small, but well managed,...
-
Why doesnt the SEC examine all the financial statements submitted to it to ensure their accuracy?
-
A student measures the angle of the compass of the tangent galvanometer respect to the earth magnetic field B (S-N), when the plane of the coil of the galvanometer is parallel to the earth's magnetic...
-
4. Consider the following two different algorithms to raise an integer x to a power of n: long powl (long x, int n) long pow2 (long x, int n) { ( if(n=0) return 1; result = 1; for (i 0; i < n; i++)...
-
Some hash functions do not work as well as theoretically possible. Suppose that we use the hash function on integer keys i defined by h(i) = i mod B, where B is the number of buckets. a) What is...
-
a Two disks with mass 150 g and radius 3 cm are on a frictionless air table. One is stationary and centered at the origin and the other approaches at 12 cm/s for a glancing collision. What is the...
-
1. Consider a channel with a white noise power of 10mW. (1) (10 points) If the channel bandwidth is 5MHz and the signal transmission power is 100mW, how much is the Shannon capacity of the channel?...
-
Your client received the following income during the taxable year: social security, $4,500, a gift from his brother, $1,500, and $1,000 from a Pega 4 drawing. The client has doubts about whether it...
-
Outline some of the major problems confronting an international advertiser.
-
The shareholders' equity accounts of Fryman Ltd. at December 31, 2013, are as follows: Preferred shares, $4 noncumulative, unlimited number authorized, 12,000...
-
Refer to the information presented for Coyote Ltd. in P17-5A. Additional information: 1. Net sales for the year were $673,250. 2. Cost of goods sold for the year was $403,950. 3. Operating expenses,...
-
Geoff doesn't understand why the interest expense recorded is higher than the cash paid for interest when bonds are issued at a discount and why the interest expense is lower than the cash paid when...
-
See Table 2.5 showing financial statement data and stock price data for Mydeco Corp. a. How did Mydecos book debt-equity ratio change from 2019 to 2023? b. How did Mydecos market debt-equity ratio...
-
See Table 2.5 showing financial statement data and stock price data for Mydeco Corp. a. Compute Mydecos PE ratio each year from 2019 to 2023. In which year was it the highest? b. What was Mydecos...
-
See Table 2.5 showing financial statement data and stock price data for Mydeco Corp. a. Compute Mydecos ROE each year from 2019 to 2023. b. Compute Mydecos ROA each year from 2019 to 2023. c. Which...
Study smarter with the SolutionInn App