On January 2, 2017, Alpha Company purchased 15,000 shares of the stock of Zulu Company, and did not obtain significant influence. The investment is…

On January 2, 2017, Alpha Company purchased 15,000 shares of the stock of Zulu Company, and did not obtain significant influence. The investment is intended as a long-term investment. The stock was purchased for $12 per share, and represents a 15% ownership stake. Zulu Company made $25,000 of net income in 2017, and paid dividends of $10,000 on December 15, 2017. On December 31, 2017, Zulu Company’s stock was trading on the open market for $11 per share at the end of the year. Use this information to determine the dollar amounts that should be reported by Alpha Company during 2017 for the following items:

           1. Dividend Income

           2. Unrealized Gain/Loss – OIC (If a loss, enter the amount with dollar sign inside of brackets)

           3. Available-for-Sales Securities

Order the answer to view it

Assignment Solutions
Assignment Solutions