Fill This Form To Receive Instant Help

Help in Homework
trustpilot ratings
google ratings


Homework answers / question archive / On January 1, 2016, Halstead, Inc

On January 1, 2016, Halstead, Inc

Accounting

On January 1, 2016, Halstead, Inc., purchased 65,000 shares of Sedgwick Company common stock for $1,403,000, 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.

 

 Net IncomeAnnual Cash Dividends (paid quarterly)2016$370,000$111,0002017493,000125,0002018585,000147,000

 

On July 1, 2018, Halstead sells 10,000 shares of this investment for $29 per share, thus reducing its interest from 25 to 21 percent, but maintaining its significant influence. 

 

Determine the amounts that would appear on Halstead's 2018 income statement relating to its ownership and partial sale of its investment in Sedgwick's common stock.

Option 1

Low Cost Option
Download this past answer in few clicks

2.93 USD

PURCHASE SOLUTION

Already member?


Option 2

Custom new solution created by our subject matter experts

GET A QUOTE