Solved

Perry Investments Bought 2,000 Shares of Able, Inc

Question 64

Multiple Choice

Perry Investments bought 2,000 shares of Able, Inc. common stock on January 1, 2015, for $20,000 and 2,000 shares of Baker, Inc. common stock on July 1, 2015 for $24,000. Baker paid $2,400 of previously declared dividends to Perry on December 31, 2015. At the end of 2015, the market value of the Able stock was $18,000 and the market value of the Baker stock was $28,000. The stocks were purchased for short-term speculation. Perry owns 10% of each company.
-If the securities purchased are classified as available-for-sale securities,Perry should record the year-end adjustment as


A) Perry Investments bought 2,000 shares of Able, Inc. common stock on January 1, 2015, for $20,000 and 2,000 shares of Baker, Inc. common stock on July 1, 2015 for $24,000. Baker paid $2,400 of previously declared dividends to Perry on December 31, 2015. At the end of 2015, the market value of the Able stock was $18,000 and the market value of the Baker stock was $28,000. The stocks were purchased for short-term speculation. Perry owns 10% of each company. -If the securities purchased are classified as available-for-sale securities,Perry should record the year-end adjustment as A) B) C) D)
B) Perry Investments bought 2,000 shares of Able, Inc. common stock on January 1, 2015, for $20,000 and 2,000 shares of Baker, Inc. common stock on July 1, 2015 for $24,000. Baker paid $2,400 of previously declared dividends to Perry on December 31, 2015. At the end of 2015, the market value of the Able stock was $18,000 and the market value of the Baker stock was $28,000. The stocks were purchased for short-term speculation. Perry owns 10% of each company. -If the securities purchased are classified as available-for-sale securities,Perry should record the year-end adjustment as A) B) C) D)
C) Perry Investments bought 2,000 shares of Able, Inc. common stock on January 1, 2015, for $20,000 and 2,000 shares of Baker, Inc. common stock on July 1, 2015 for $24,000. Baker paid $2,400 of previously declared dividends to Perry on December 31, 2015. At the end of 2015, the market value of the Able stock was $18,000 and the market value of the Baker stock was $28,000. The stocks were purchased for short-term speculation. Perry owns 10% of each company. -If the securities purchased are classified as available-for-sale securities,Perry should record the year-end adjustment as A) B) C) D)
D) Perry Investments bought 2,000 shares of Able, Inc. common stock on January 1, 2015, for $20,000 and 2,000 shares of Baker, Inc. common stock on July 1, 2015 for $24,000. Baker paid $2,400 of previously declared dividends to Perry on December 31, 2015. At the end of 2015, the market value of the Able stock was $18,000 and the market value of the Baker stock was $28,000. The stocks were purchased for short-term speculation. Perry owns 10% of each company. -If the securities purchased are classified as available-for-sale securities,Perry should record the year-end adjustment as A) B) C) D)

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q59: The unrealized holding gain or loss on

Q60: IFRS does not permit use of the

Q61: Which of the following properly describes a

Q62: Almond Industries owns an investment that experienced

Q63: The Shasta Corporation began operations in

Q65: Palmon Industries owns an investment that experienced

Q66: Central Investments bought 4,000 shares of Benet

Q67: A minority active investment is accounted for

Q68: A company purchased shares of stock of

Q69: Ralmond Industries owns an investment that experienced

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents