Larkin Co. has owned 25% of the common stock of Devon Co. for a number of years, and has the ability to exercise significant influence over Devon. The following information relates to Larkin's investment in Devon during the most recent year:Carrying amount of Larkin's investment in Devon at the beginning of the year $200,000Net income of Devon for the year 600,000Total dividends paid to Devon's stockholders during the year 400,000What is the carrying amount of Larkin's investment in Devon at year end? A. $100,000B. $200,000C. $250,000D. $350,000
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Larkin Co. has owned 25% of the common stock of Devon Co. for a number of years, and has the ability to exercise significant influence over ...” 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
Vaughn Manufacturing sells merchandise on account for $2500 to Morton Company with credit terms of 2/14, n/30. Morton Company returns $900 of merchandise that was damaged, along with a check to settle the account within the discount period.
Answers (1)
Suppose the 2017 adidas financial statements contain the following selected data (in millions). Current assets $4,570 Interest expense $160 Total assets 8,320 Income taxes 120 Current liabilities 3,060 Net income 260 Total liabilities 4,544 Cash 750
Answers (1)
The excess of fair value over implied value must be allocated to reduce proportionally the fair values initially assigned to: a. current assets. b. noncurrent assets. c. both current and noncurrent assets. d. none of the above.
Answers (1)
The reason why reinvested earnings have a cost equal to the required rate of return is because investors expect to earn on those funds, what they earn on new projects or purchases of other firms. This is called opportunity costs. True / False.
Answers (1)
Several years ago, Castles in the Sand Inc. issued bonds at face value of $1,000 at a yield to maturity of 6.2%.
Answers (1)
New Questions in Business
A master plan is devised for a. emergencies. b. long-range goals. c. investments. d. short-term goals
Answers (1)
Adama Company reported a net loss of $6,000 for the year ended December 31, 2014. During the year, accounts receivable increased $15,000, merchandise inventory decreased $12,000, accounts payable decreased by $20,000, and depreciation expense of
Answers (1)
2. Which of the following headlines is more closely related to what microeconomists study than to what macroeconomists study? a. Unemployment rate falls from 7.5 percent to 7.3 percent. b. Real GDP falls by 0.4 percent in the third quarter. c.
Answers (1)
Scenario 1: suppose savers either buy bonds or make deposits in savings accounts at banks. initially, the interest income earned on bonds or deposits is taxed at a rate of 20%.
Answers (1)
Charm Co. owns a delivery truck with an original cost of $10,000 and accumulated depreciation of $7,000. Charm acquired a new truck by exchanging the old truck and paying $2,000 in cash.
Answers (1)