Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. kim company bought 30% of the shares of phelps, in

Kim Company bought 30% of the shares of Phelps, Inc., at the start of 2016....

60.1K

Verified Solution

Question

Accounting

Kim Company bought 30% of the shares of Phelps, Inc., at the start of 2016. Kim paid $20 million for the shares. Thirty percent of the book value of Phelpss net assets is $15 million, and the difference of $5 million is due to land that Phelps owns that has appreciated in value. During 2016, Phelps reported net income of $4 million and paid a cash dividend of $3.5 million.

What amount does Kim carry the Phelps investment on its balance sheet as of December 31, 2016? (Enter your answers in millions rounded to 2 decimal places (i.e., 5,500,000 should be entered as 5.50).)

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

Operations Management
1.2K views

Discuss why some companies view training as an important, ongoing and valuable activity. Choose an activity you...

Biology
1.2K views

of factors abiotic factors and biotic factors Both types contribute to the type and number...

Biology
1.2K views

Which of the following types of covalent bonds are found in the structure of ATP?N-glycosidic,...

Biology
1.2K views

UNIT 1 EXAMPLE You hear I m Gia I study life science You write I...

Basic Math
1.2K views

Let p and q be the propositions p It is sunny q It is hot...

Basic Math
1.2K views

Simplify the following expressions completely. Assume the variable represent positive values. A) ?(64p^26) B) ?(100m^40)

Algebra
1.2K views

What is an equation in standard form of an ellipse centered at the origin with...

Algebra
1.2K views

Consider the functions f x x 7 and g x 4x What is f x...

Algebra
1.2K views

Write the expression as the product of two functions sin 1 2 7 sin

Accounting
1.2K views

The first-year auditor on the engagement has suggested that since no exceptions were detected in...

Finance
1.2K views

(Nonannual Compounding using calculator) Jesse Pinkman is thinking about trading cars. He estimates he will...

Finance
1.2K views

ABC Company has issued debt of $77,923 at an interest rate of 6.6%. What is...