Asked by Sareeka Ramlal on Jul 07, 2024
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On January 1 2017 Lark Corporation purchased 35% of the common stock outstanding of Dinc Corporation for $700000. During 2017 Dinc Corporation reported net income of $200000 and paid cash dividends of $100000. The balance of the Stock Investments-Run account on the books of Lark Corporation at December 31 2017 is
A) $700000.
B) $735000.
C) $770000.
D) $665000.
Stock Investments-Run
Stock investments-run refers to the active management or trading of stock investments over a certain period to achieve specific financial goals.
Common Stock
Equity securities representing ownership shares in a corporation, giving holders voting rights and a share in the company’s profits through dividends.
Net Income
The final profit figure for a company after all operational costs and tax obligations are subtracted from income.
- Appraise the effect of share transactions (acquisition, liquidation, and dividend earnings) on the financial ledgers of an investor.
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Learning Objectives
- Appraise the effect of share transactions (acquisition, liquidation, and dividend earnings) on the financial ledgers of an investor.
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