standing common stock of Theresa Kulikowski Inc. on December 31, 2020. The purchase price was $ 1,245,600 for 51,900 shares. Kulikowski Inc. declared and paid an $ 0.85 per share cash dividend on June 30 and on Decem

standing common stock of Theresa Kulikowski Inc. on December 31, 2020. The purchase price was $ 1,245,600 for 51,900 shares. Kulikowski Inc. declared and paid an $ 0.85 per share cash dividend on June 30 and on Decem

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA2: Investments

Section: Chapter Questions

Problem 11MCQ

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Question

Shamrock Inc. acquired 20% of the outstanding common stock of Theresa Kulikowski Inc. on December 31, 2020. The purchase price was $ 1,245,600 for 51,900 shares. Kulikowski Inc. declared and paid an $ 0.85 per share cash dividend on June 30 and on December 31, 2021. Kulikowski reported net income of $ 699,000 for 2021. The fair value of Kulikowski’s stock was $ 27 per share at December 31, 2021.

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