Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. on july 1, 2018, tremen corporation acquired 40% o

On July 1, 2018, Tremen Corporation acquired 40% of the shares of Delany Company. Tremen...

70.2K

Verified Solution

Question

Accounting

image

On July 1, 2018, Tremen Corporation acquired 40% of the shares of Delany Company. Tremen paid $3,170,000 for the investment, and that amount is exactly equal to 40% of the book value of identifiable net assets on Delany's balance sheet. Delany recognized net income of $1,300,000 for 2018, and paid $160,000 of dividends each quarter to its shareholders. After all closing entries are made, Tremen's "Investment in Delany Company" account would have a balance of: Multiple Choice $3,626,000. $3,804,000. $3,430,000 $3,302,000

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

Advance Math
1.2K views

Course: Math Modeling A tank contains 8 L (liters) of water in which is dissolved 32...

Accounting
1.2K views

On December 1, 2015 John Trap created a new travel agency, Trap Adventures, Inc. providing exclusive...

Biology
1.2K views

MULTIPLE CHOICE True or false Denitrification returns nitrogen to the atmosphere A B True False

Biology
1.2K views

The key differences between cell types that allows them to be differentiated from one another...

Physics
1.2K views

35 A spherical mirror has a radius of curvature of 14 cm What type of...

Physics
1.2K views

In an isobaric process of a monoatomic gas 100 J of heat is added to...

Geometry
1.2K views

Find the length of the hypotenuse of a right triangle with legs of 18 cm...

Calculus
1.2K views

Differentiate the function 12 y In x y

Accounting
1.2K views

Clear communication depends on:* 1 point ...

Accounting
1.2K views

At the end of their fiscal year 20X2, Exxon Specialities had the following balances listed...

Accounting
1.2K views

Current Attempt in Progress The adjusted account balances of Cullumber Centre at July 31 are...

Accounting
1.2K views

Help Save & Ex Sub Check my well Required information [The following information applies to...