On 112020 ABC started operations by issuing common stock .pdf
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abc initiated operations on 1/1/2020, issuing 10 million shares of common stock at a par value of $25 and a price of $280, with xyz investing $784 million in the same year. In 2020, abc reported a net income of $890 million after paying $5.9 million in dividends, while xyz reported revenues and gains of $170 million, expenses and losses of $100 million, and total dividends of $17 million. The task is to calculate xyz's income (loss) before tax for the year ending 12/31/2020, excluding investment-related transactions.
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On 112020 ABC started operations by issuing common stock .pdf
- 1. On 1/1/2020, ABC started operations by issuing common stock 10,000,000 Share s Par value per share $ 25 Price per share $ 280 On 1/1/2020, XYZ invested in ABC $784,000,000 During 2020, ABC had the following transactions: Paid dividends (TOTAL) $ 5,900,000 Net income $890,000,000 During 2020, XYZ had the following transactions: Paid dividends (TOTAL) $ 17,000,000 Revenues and gains $170,000,000 Expenses and losses $100,000,000 Revenues, gains, expenses, and losses for XYZ do not include investment related transactions Calculate income (loss) before tax for XYZ for the year ending 12/31/2020.