100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Previously searched by you
Previously searched by you
logo
Summary Her Company purchased 48,000 common shares (20%) of Him Inc. on January 1, Year 4, for $81 $7.99   Add to cart
Quickly navigate to
Preview
  2.  
  3. University Of Phoenix
  4.  
  5. ACC 561

Summary

Summary Her Company purchased 48,000 common shares (20%) of Him Inc. on January 1, Year 4, for $81
 0 view  0 purchase

Her Company purchased 48Her Company purchased 48,000 common shares (20%) of Him Inc. on January 1, Year 4, for $816,000. Additional information on Him for the three years ending December 31, Year 6, is as follows: Year Net Income Dividends Paid Market Value per Share at December 31 Year 4 $480,000 ...

[Show more]

Preview 1 out of 3  pages

Document information

  • October 6, 2024
  • 3
  • 2024/2025
  • Summary

Subjects

  • year 4
  • for 816
  • year 6
  • her company purchased 48her company purchased 48
  • 000 common shares 20 of him inc on january 1
  • 000 additional information on him for the three y
  • is as follows year net income divi

Written for

All documents for this subject (82)

Seller

avatar-seller
newage

Reviews received

Content preview

Her Company purchased 48,000 common shares (20%) of Him Inc. on January

1, Year 4, for $816,000. Additional information on Him for the three years

ending December 31, Year 6, is as follows: Year Net Income Dividends Paid

Market Value per Share at December 31 Year 4 $480,000 $360,000 $18 Year 5

540,000 384,000 20 Year 6 576,000 420,000 23 On December 31, Year 6, Her

sold its investment in Him for $1,104,000.




Answer & Explanation


To analyze Her Company's investment in Him Inc., we need to consider the

equity method of accounting, as Her Company owns 20% of Him Inc. This

method requires recognizing a share of the investee's net income and dividends

received.


Step-by-Step Analysis:


1. Initial Investment:

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller newage. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $7.99. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

70055 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling
$7.99
  • (0)
  Add to cart