Course Hero Logo

Ftx company owns 10 interest in the stock of zip

Course Hero uses AI to attempt to automatically extract content from documents to surface to you and others so you can study better, e.g., in search results, to enrich docs, and more. This preview shows page 26 - 28 out of 64 pages.

112.FTX Company owns 10% interest in the stock of Zip Corporation. During the year, Zippays $5,000 in dividends to FTX, and reports a net loss of $100,000. FTX Company’sinvestment in Zip will affect FTX net income by aa.$5,000 increase.b.$10,000 increase.c.$10,000 decrease.d.$5,000 decrease.Ans: A, LO: 2, Bloom: AP, Difficulty: Medium, Min: 3, AACSB: Analytic, AICPA BB: Legal/Regulatory Perspective, AICPA FC: Reporting, AICPA PC: ProblemSolving, IMA: ReportingH-26
FOR INSTRUCTOR USE ONLY
Reporting and Analyzing Investments113.On January 1, 2022, Valentine Corporation purchased 25% of the common stockoutstanding of Betz Corporation for $200,000. During 2022, Betz Corporation reportednet income of $80,000 and paid cash dividends of $48,000. The balance of the StockInvestments—Betz account on the books of Valentine Corporation at December 31, 2022,is
114.On January 1, 2022, the Express Corporation purchased 30% of the common stockoutstanding of the Bangor Corporation for $300,000. During 2022, the BangorCorporation reported net income of $120,000 and paid cash dividends of $30,000. Thebalance of the Stock Investments—Bangor account on the books of Express Corporationat December 31, 2022, is
115.Under the equity method, the Stock Investments account is increased when the

Upload your study docs or become a

Course Hero member to access this document

Upload your study docs or become a

Course Hero member to access this document

End of preview. Want to read all 64 pages?

Upload your study docs or become a

Course Hero member to access this document

Term
Fall
Professor
professor_unknown
Tags

Newly uploaded documents

Show More

Newly uploaded documents

Show More

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture