At the Beginning of the Year, Dynamite Corporation Acquired 15

question 27

Short Answer

At the beginning of the year, Dynamite Corporation acquired 15% of Tuesday Company common stock for $600,000. Tuesday Company reported net income for the year of $60,000 and paid $20,000 cash dividends during the year. The balance of the Stock Investments account on the books of the Dynamite Corporation at the end of the year should be $______________.

---

Definitions:

Board of Directors

A group of individuals elected to represent shareholders and govern the organization by establishing policies and making decisions on major company issues.

Acquisition

The process by which one company buys most or all of another company's shares to gain control of it.