On January 1, 2000, Dykman Corporation purchased 25% of the common stock outstanding of Moses Corporation for $300,000. During 2000, Moses Corporation reported net income of $120,000 and paid cash dividends of $40,000. The balance of the Stock Investments——Moses account on the books of Dykman Corporation at December 31, 2000 is?
2007-02-03 07:26:02 · 3 answers · asked by russell s 3 in Education & Reference ➔ Homework Help
Dykman received $10,000 in dividends, but you can't determine the book value of the stock because it doesn't say if the stock price went up or down. Usually stock investments are listed on the books at "lower of cost or market". Assuming the stock price was stable or went up, the value on the books would be $300,000.
2007-02-03 07:58:33 · answer #1 · answered by crazydave 7 · 0⤊ 0⤋
wut that makes no sence thats dumb i am sorry to say that but o well
2007-02-03 15:29:12 · answer #2 · answered by LIL B 3 · 0⤊ 0⤋
i dunno i am taking economic theory not applied economics
2007-02-03 15:30:48 · answer #3 · answered by Anonymous · 0⤊ 0⤋