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Question
On January 1, 2011, Posten Company purchased 10,000 shares of Toma Company for $78,000 plus a broker's fee of $2,000. Toma Company has a total of 40,000 shares of common stock outstanding and it is presumed the Posten Company will have a significant influence over Toma. Toma declared and paid cash dividends of $0.93 per share in 2011 and 2012. Toma's net income was $190,000 and $270,000 for 2011 and 2012 respectively. The January 1, 2013, entry on the books of Posten Company to record the sale of 4,500 shares of Toma Company stock for $85,000 cash should be:
A)
| Cash | 85,000 | |
| Loss on Sale of Investments | 110,000 | |
| Long-Term Investments | 195,000 |
B)
| Cash | 85,000 | |
| Gain on Sale of Investments | 57,370 | |
| Long-Term Investments | 27,630 |
C)
| Cash | 85,000.00 | |
| Gain on Sale of Investments | 76,195.75 | |
| Long-Term Investments | 8,804.25 |
D)
| Cash | 85,000 | |
| Gain on Sale of Investments | 5,620 | |
| LongTerm Investments | 79,380 |
E)
| Cash | 85,000 | |
| Gain on Sale of Investments | 5,000 | |
| LongTerm Investments | 80,000 |
Answer
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Related questions
Q:
Periods
12 Percent 1
8929 2
1.6901 3
2.4018 4
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B. A monthly period separated into daily budgets.
C. A quarterly period separated into weekly budgets.
D. An annual period separated into weekly budgets.
E. An annual period separated into quarterly and monthly budgets.
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C. Solely by the budget committee.
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E. After the accounting period has begun.
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663 lbs. Ending Finished Goods Inventory
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