This preview shows page 1. Sign up to view the full content.
Unformatted text preview: Investment in affiliates 5,000 If 10,000 is used, minus 1 Equity in affiliates earnings 5,000 b. OneUp pays dividends of $2 per share Cash 1,000 Investment in affiliates 1,000 3. YellCo purchased 5,000 shares of SubCo at $25 per share on January 1, 2011. YellCo carries SubCo as a Security Available for Sale. You do not need to record the entry for the purchase. a. There is no other activity for SubCo until December 31, 2011 when YellCos books are being closed. At that date, SubCos fair market value is $30 per share. Record the entry on YellCos books. Investment in Subco 25,000 Unrealized gain OCI 25,000 b. On January 10, 2012, YellCo sells all 5, 000 shares of SubCo stock for $32 per share. Cash 160,000 Unrealized gain OCI 25,000 Investment in Subco 150,000 Gain on sale of investments 35,000 Page 1 of 1...
View Full Document
This note was uploaded on 04/01/2012 for the course BUAD 280 taught by Professor Wan during the Fall '11 term at USC.
- Fall '11