122500 investments 175 shares

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Unformatted text preview: ............. $1,225.00 Investments (175 shares x $19)............................................. $3,325.00 Oct. 31 Cash (175 shares x $2.20) ........................................................... $ 385.00 Dividend Revenue ................................................................. $ 385.00 Dec. 31 Investments ................................................................................. $1,750.00 Unrealized Gain .................................................................... $1,750.00 NOTE: 4. a. The unrealized gain is equal to $10 per share ($29 - $19) multiplied by 175 shares. Investment in Lake Construction Company at December 31, 2011 = Original cost + % share of net income – % share of dividends $300,000,000 + ($150,000,000 x 40%) – ($30,000,000 x 40%) = $348,000,000 b. Investment revenue for 2011 = % share of net income = $150,000,000 x 40% = $60,000,000 c. Investing cash flow for 2011: Cash paid to purchase investments ………………………… $(300,000,000) Investments (INVEST) – Practice Problem Solutions Pg 2 5. Investment A Dec. 31 Unrealized Loss .......................................................................... Investments ........................................................................... $150.00 Investment B Dec. 31 Investments ................................................................................. Unrealized Gain .................................................................... $100.00 Investment C Dec. 31 Investments ....
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This document was uploaded on 03/18/2014.

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