Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. francis, inc. acquired 40% of park's voting stock

Francis, Inc. acquired 40% of Park's voting stock on January 1, 2020, for $420,000. During...

50.1K

Verified Solution

Question

Accounting

Francis, Inc. acquired 40% of Park's voting stock on January 1, 2020, for $420,000. During 2020, Park earned $120,000 and paid dividends of $60,000. During 2021, Park earned $160,000 and paid dividends of $50,000 on April 1 and $40,000 on December 1. On July 1, 2021, Francis sold half of its stock in Park for $275,000 cash. What is the gain on sale of the investment if income was earned evenly throughout 2021?

A. $ 94,000

B. $ 47,000

C. $181,000

D. $ 39,000

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Physics
1.2K views

The radius of the 4th orbit of the electron will be smaller than its 8th...

Chemistry
1.2K views

What is the \"octet rule\" and what role does it play in Lewis structures. Use the...

Mechanical Engineering
1.2K views

Summarise 3 benefits for manufacturers from adopting the IoT ( Internet of Things ).

Physics
1.2K views

2). A particle moving on the x-axis has a time-dependent position (t) given by the equation...

Accounting
1.2K views

Baltic Limited is a listed company based in California. On January 1, 2019, the company granted...

Physics
1.2K views

A 2 mC and 10 mC charge are separated If the force between them is...

Basic Math
1.2K views

. You take your cup of coffee outside to stand in the sun and review...

Algebra
1.2K views

Consider the following quadratic X y 3 4 5 8 1 7 5 3 2...

Algebra
1.2K views

Find the indicated 14 14 i 4 6 41 i 4 6 4 Simplify your...

Algebra
1.2K views

Find an equation of the line that has a slope of 6 and a y...

Accounting
1.2K views

Leopard Corporation borrowed SR 80,000 on October 1, 2017, by signing a SR 80,000, 9%,...

Accounting
1.2K views

how did we calculate the retained earnings?