On January 1, 2017, Puma Corporation acquired 30 percent of Slume Company's stock for $150,000. On the acquisition date, Slume reported net assets of $450,000 valued at historical cost and $500,000 stated at fair value. The difference was due to the increased value of buildings with a remaining life of 10 years. During 2017 Slume reported net income of $25,000 and paid dividends of $10,000. Puma uses the equity method. What amount of investment income will be reported by Puma for the year 2017?
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “On January 1, 2017, Puma Corporation acquired 30 percent of Slume Company's stock for $150,000. On the acquisition date, Slume reported net ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Days' cash on hand Financial statement data for years ending December 31 for Newton Company follow: 20Y9 20Y8 Cash (end of year) $25,500 $24,250 Short-term investments (end of year) 8,270 9,460 Operating expenses 60,135 63,780 Depreciation expense
Answers (1)
Which american job sector has greatly increased since the oil crisis of 1973?
Answers (1)
Memuru Company has the following information pertaining to its two divisions for last year:Division X Division YVariable selling and admin.
Answers (1)
Unit prices go down when ostructing multiple units versus a single unit. this is known as:
Answers (1)
Merv Grazinski, driving his Winnebago, put it on cruise control to go make coffee. The Winnebago went off the road, turned over several times, and left Grazinski paralyzed from the waist down. He brings a product liability lawsuit against Winnebago.
Answers (1)
New Questions in Business
There are plenty of products and services on the market that customers can choose from. however, customers select the business in which they purchase products based on the perceived value of the business and product.
Answers (1)
A married couple abandoned their principal residence in May. They had purchased the house five years ago for $350,000. The house had a current fair market value of $300,000.
Answers (1)
6 If you are a driver under 21 with a breath or blood alcohol level of. 05 or higher you will be required to:
Answers (1)
Why do you think companies felt that unions were "conspiracies that interfere with property rights"?
Answers (1)
When Ernesto needed to learn what his employees really think about his company's new pension plan, he approached Vonnie, a long-time secretary in the legal department with contacts throughout the organization.
Answers (1)