Valix Finacc vol 1 Problem 10-2

Financial Accounting Volume 1 2008 Valix-Peralta
Chapter 1 Problem 10-2

                                                                   Market value          Fraction          Allocated cost

A  (8,000 x 100)                                                   800,000                 8/41                      600,000

B  (16,000 x 150)                                                2,400,000               24/41                     1,800,000

C  (1,000,000 x 90%)                                           900,000                 9/41                       675,000

                                                                     4,100,000                                            3,075,000                                                      

Investment in A shares                                                                         600,000

Investment in B shares                                                                       1,800,000

Investment in C Bonds                                                                                    675,000

        Cash                                                                                                               3,075,000