Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. on january 1,2022, halstead, incorporated, purchas

On January 1,2022, Halstead, Incorporated, purchased 72,000 shares of Sedgwick Company common stock for $1,520,000,...

70.2K

Verified Solution

Question

Accounting

On January 1,2022, Halstead, Incorporated, purchased 72,000 shares of Sedgwick Company common stock for $1,520,000, giving
Halstead 25 percent ownership and the ability to apply significant influence over Sedgwick. Any excess of cost over book value
acquired was attributed solely to goodwill.
Sedgwick reports net income and dividends as follows. These amounts are assumed to have occurred evenly throughout these years.
Dividends are declared and paid in the same period.
On July 1,2024, Halstead sells 11,520 shares of this investment for $29 per share, thus reducing its interest from 25 to 21 percent, but
maintaining its significant influence.
Required:
Determine the amounts that would appear on Halstead's 2024 income statement relating to its ownership and partial sale of its
investment in Sedgwick's common stock.
Total income accrual (no unearned gains)
on sale of shares
image

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

Accounting
1.2K views

Due to erratic sales of its sole product—a high-capacity battery for laptop computers—PEM, Inc., has been...

Biology
1.2K views

Why can’t morphological features be used to study variation? What is the exception? Discuss this exception...

Electrical Engineering
1.2K views

A binary data stream 111010010 is to be transmitted using DPSK. Determine the encoded data and...

Electrical Engineering
1.2K views

Q1. What is Laplace transform and why do we use it in circuit analysis.

Basic Math
1.2K views

State why the system of equations must have at least one solution Select all that...

Accounting
1.2K views

Swasey Company provided the following partial comparative balance sheets and the income statement for 20X2....

Accounting
1.2K views

Investment $15,000 Annual operating Cost 2,000 Annual Revenues 6,000 Operating cost will increase by G=$400...

Accounting
1.2K views

Current Attempt in Progress Cullumber Appliance Co. manufactures low-price, no-frills appliances that are in great...

Accounting
1.2K views

Help Save& Exit Subm Product X-547 is one of the joint products in a joint...

Accounting
1.2K views

Tax credits: a. reduce taxable income in the year the credit is earned. b. reduce...

Accounting
1.2K views

Crane Frame Camera Shop uses the lower-of-cost-or-net realizable value basis for its inventory. The following...

Accounting
1.2K views

Question 1 (1 point) Employer payroll costs will include both the gross wages of employees...