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متابعة

Johnstone Company owns 10,000 shares of Breva Corporation’s stock; Breva currently has 40,000 shares outstanding. During the year,

Breva had net income of $200,000 and paid $160,000 in dividends. At the beginning of the year, there was a balance of $150,000 in Johnstone’s equity method investment in Breva Corporation account. At the end of the year, the balance in this account should be ?

A. $110,000

B. $150,000

C. $160,000

D. $240,000

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تم إضافة السؤال من قبل مستخدم محذوف‎
تاريخ النشر: 2015/03/06
thumeliso ndlovu
من قبل thumeliso ndlovu

Memorandum/Article of Association are important legal documents for any corporation. What's their importance?

Vivek Patil
من قبل Vivek Patil , Dy. Manager , Precision Seals Manufacturing Ltd

$200000-$160000=$40000

$40000/40000shares=$1/- per share

10000shares of $1/-=$10000

$10000+$150000=$160000

Samuel mayen Mathiang Aneet
من قبل Samuel mayen Mathiang Aneet , Community Organizer , BRAC International

Corporate accountant can compare the cost with the benefit.

Allen Ambo
من قبل Allen Ambo , Finance Manager , Qatar Living for Trade & IT Investment

Option C is the Correct answer.

Opening bal equity in Johnson at year start was 150,000. It holds a 25% shareholding in Breva which had a profit after dividends been paid of 40,000. 25% of 40,000 is 10,000. Now add 10,000 to existing equity of 150,000 gives you an ending balance figure of 160,000 

VENKITARAMAN KRISHNA MOORTHY VRINDAVAN
من قبل VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.

Option   C   >>>>>>>>>>>>>>>>>     $160,000 --

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