subject
Business, 06.05.2020 04:09 juliannabartra

Gamble Company convinced Conservative Corporation that the two companies should establish Simpletown Corporation to build a new gambling casino in Simpletown Corner. Although chances for the casino’s success were relatively low, a local bank loaned $140,000,000 to the new corporation, which built the casino at a cost of $130,000,000. Conservative purchased 100 percent of the initial capital stock offering for $5,600,000, and Gamble agreed to supply 100 percent of the management and guarantee the bank loan. Gamble also guaranteed a 20 percent return to Conservative on its investment for the first 10 years. Gamble will receive all profits in excess of the 20 percent return to Conservative. Immediately after the casino’s construction, Gamble reported the following amounts: Cash $ 3,000,000 Buildings and Equipment 240,600,000 Accumulated Depreciation 10,100,000 Accounts Payable 5,000,000 Bonds Payable 20,300,000 Common Stock 103,000,000 Retained Earnings 105,200,000 The only disclosure that Gamble currently provides in its financial reports about its relationships to Conservative and Simpletown is a brief footnote indicating that a contingent liability exists on its guarantee of Simpletown Corporation’s debt. Required:Prepare a consolidated balance sheet for Gamble immediately following the casino’s construction.(Amounts to be deducted should be indicated by minus sign.)

ansver
Answers: 1

Another question on Business

question
Business, 22.06.2019 11:00
When using various forms of promotion to carry the promotion message, it is important that the recipients of the message interpret it in the same way. creating a unified promotional message, where potential customers perceive the same message, whether it is in a tv commercial, or on a billboard, or in a blog, is called
Answers: 2
question
Business, 22.06.2019 13:50
When used-car dealers signal the quality of a used car with a warranty, a. buyers believe the signal because the cost of a false signal is high b. it is not rational to believe the signal because some used-car dealers are crooked c. the demand for lemons is eliminated d. the price of a lemon rises above the price of a good used car because warranty costs on lemons are greater than warranty costs on good used cars
Answers: 2
question
Business, 22.06.2019 20:00
Richard is one of the leading college basketball players in the state of florida. he also maintains a good academic record. looking at his talent and potential, furman university offers to bear the expenses for his college education.
Answers: 3
question
Business, 23.06.2019 01:30
What is the minimum educational requirement for a pediatric psychopharmacologist? a. md b. phd c. bachelors in medicine d. masters in medicine e. psyd
Answers: 1
You know the right answer?
Gamble Company convinced Conservative Corporation that the two companies should establish Simpletown...
Questions
Questions on the website: 13722361