Hello these are Accounting questions please answer the questuins and show me you

Question

Hello these are Accounting questions

please answer the questuins and show me your work and how you get the answer as soon as possible

4- Assume that Reed Company purchases 18,000 common shares of Aiello Company for $8 cash per share. During the year, Reed receives a cash dividend of $0.90 per common share from Aiello, and the year-end market price of Aiello common stock is $9 per share. Reed Company classified the investment as trading securities.

How much income does Reed report relating to this investment for the year?

Select one:

a. $18,000

b. $145,800

c. $144,000

d. $34,200

10- Square Company purchases an equity investment in Tangle Company at a purchase price of $8 million, representing 40% of the book value of Tangle. During the current year, Tangle reports net income of $700,000 and pays cash dividends of $300,000. At the end of the year, the market value of Square's investment is $8.3 million.

What amount of income does Square report relating to this investment in Tangle for the year?

Select one:

A. $300,000

B. $120,000

C. $240,000

D. $280,000

Q1)

Q3)

Amngen, Inu, reports the following fixatnate to its 10.K regal. ACCT371:1-Financial Accuuriling and Analysis DIRITTO Grades Finish attempt. Immunex acquisition. On July 15, 2002, the Company acquired all of the outstanding common stock of Immunex in a transaction accounted for as a business combination. Immunex was a leading biotechnology comoany dedicated to developing immune system science to protect human health. The acquisition anhanced Amgen's strategic position within the bictechnology industry by strengthening and diversifying its (1) product base and product pipeline in key therapeutic areas, and (2) discovery research capabilities in proteins and antibodies. The purchase price was allocated to the tangible and identifiable intangible assets acquired and abilities assumed based on their estimated fair values at the acquisition date. The following table summarizes the estimated fair values of the assets Boquired and liabilities assumed as of the acquisition date (in millons 6 Module 1 Module 2 6 Module 3 Current assets, principally cash and marketable securities.......... S 1619.1 2002 Support Module 4 2998 Property, plant, and equipment In process rescarch and development Ide a intangible matsprincipally deweloped product technology and core technology....... Module 5 97742 + Module G Other Assets Currentielles. Delorrud lax listus...SEER Net A s ...... R e censemenea ISERERERE ..... . (57900 (1 6135 $17.7718 Net assets . .. Module 7 Module 8 Module 9 The allocation of the purchase price was based in part, on a third-party valuation of the fair values of in-process research and development, identifieble intangible assets, and certain properly. plant and equipment The estimated fair value of the in-process R&D; projects was determined based on the use of a discounted cash flow model. For each project, the estimated after-tax cash flows were probablity weighted to take into account the stage of completion and the risks surrounding the successful development and commercialization. These cash flows were then discounted to a present value using discount rates ranging from 12% to 149 Module 10 6 Module 11 of the total assets acouired. what portion is allocated to tangible assets and what portion to D ea MP3 Netto all 303 PM 4/2/2018

Explanation / Answer

Solution 4:

Dividend received = 18000*$0.90 = $16,200

Unrealized gain Gain on Held for trading investment due to change in fair value = ($9 - $8) * 18000 = $18,000

Total income to be reported related to this investment for the year = Dividend income + Unrealized gain due to chagne in fair value

= $16,200 + $18,000 = $34,200

Hence option d is correct.

Solution 10:

As 40% shares of tangle company was acquired by Square Company, therefore square company is having significant influence in tangle company and equity method will be applied for accounting for investment.

Therefore income to be reported related to this investment for the year = Net Income of tangle * % holding in tangle

= $700,000*40% = $280,000

Hence option D is correct.

Note: As multiple questions are posted, i have to answered first question only as per chegg policy though i have answered first 2 questions. Kindly post separate question for answer of remaining questions.

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