On February 15, Seacroft buys 6,200 shares of Kebo common at $28.71 per share pl

Question

On February 15, Seacroft buys 6,200 shares of Kebo common at $28.71 per share plus a brokerage fee of $485. The stock is classified as available-for-sale securities. On March 15, Kebo declares a dividend of $1.23 per share payable to stockholders of record on April 15. Seacroft received the dividend on April 25 and ultimately sells half of the Kebo stock on November 17 of the current year for $29.68 per share. The amount of that Seacroft should report in the equity of section of its year-end December 31 balance sheet for its investment in Kebo is (Round your indtermediate and final dollar values to the nearest dollar amount):

a. 2,764

b. 1,804

c. 9,430

d. 7,626

e. 5,529

Explanation / Answer

NET PROFIT =3100 * (29.68 - 28.71) - 485 =2522

REMAINING EQUITY = 29.68 *3100 =92008

TOTAL EQUITY =2522 +92008 = 94530

SO C IS 94530

Related Questions

Navigate

• Browse (All)
• Browse O
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.