On January 1, 2017, Fisher Corporation purchased 40 percent (80,000 shares) of the common stock of...
On January 1, 2017, Fisher Corporation purchased 40 percent (80,000 shares) of the common stock of Bowden, Inc. for $976,000 in cash and began to use the equity method for the investment. The price paid represented a $60,000 payment in excess of the book value of Fisher's share of Bowden's underlying net assets. Fisher was willing to make this extra payment because of a recently developed patent held by Bowden with a 15-year remaining life. All other assets were considered appropriately valued on Bowden's books. Bowden declares and pays a $92,000 cash dividend to its stockholders each year on September 15. Bowden reported net income of $402,000 in 2017 and $346,000 in 2018. Each income figure was earned evenly throughout its respective year. On July 1, 2018, Fisher sold 10 percent (20,000 shares) of Bowden's outstanding shares for $332,000 in cash. Although it sold this interest, Fisher maintained the ability to significantly influence Bowden's decision-making process. Prepare the journal entries for Fisher for the years of 2017 and 2018.
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On January 1, 2017, Fisher Corporation purchased 40 percent
(80,000 shares) of the common stock of...
On January 1, 2017, Fisher Corporation purchased 40 percent (86,000 shares) of the common stock of...
On January 1, 2017, Fisher Corporation purchased 40 percent (86,000 shares) of the common stock of Bowden, Inc. for $980,000 in cash and began to use the equity method for the investment. The price paid represented a $60,000 payment in excess of the book value of Fisher's share of Bowden's underlying net assets. Fisher was willing to make this extra payment because of a recently developed patent held by Bowden with a 15-year remaining life. All other assets were considered...
On January 1, 2017, Fisher Corporation purchased 40 percent (82,000 shares) of the common stock of...
On January 1, 2017, Fisher Corporation purchased 40 percent (82,000 shares) of the common stock of Bowden, Inc. for $974,000 in cash and began to use the equity method for the investment. The price paid represented a $66,000 payment in excess of the book value of Fisher's share of Bowden's underlying net assets. Fisher was willing to make this extra payment because of a recently developed patent held by Bowden with a 15-year remaining life. All other assets were considered...
On January 1, 2017, Fisher Corporation purchased 40 percent (72,000 shares) of the common stock of...
On January 1, 2017, Fisher Corporation purchased 40 percent (72,000 shares) of the common stock of Bowden, Inc. for $992,000 in cash and began to use the equity method for the investment. The price paid represented a $54,000 payment in excess of the book value of Fisher's share of Bowden's underlying net assets. Fisher was willing to make this extra payment because of a recently developed patent held by Bowden with a 15-year remaining life. All other assets were considered...
On January 1, 2017, Fisher Corporation purchased 40 percent (90,000 shares) of the common stock of...
On January 1, 2017, Fisher Corporation purchased 40 percent (90,000 shares) of the common stock of Bowden, Inc. for $980,000 in cash and began to use the equity method for the investment. The price paid represented a $48,000 payment in excess of the book value of Fisher's share of Bowden's underlying net assets. Fisher was willing to make this extra payment because of a recently developed patent held by Bowden with a 15-year remaining life. All other assets were considered...
On January 1, 2017, Fisher Corporation purchased 40 percent (86,000 shares) of the common stock of...
On January 1, 2017, Fisher Corporation purchased 40 percent (86,000 shares) of the common stock of Bowden, Inc. for $974,000 in cash and began to use the equity method for the investment. The price paid represented a $60,000 payment in excess of the book value of Fisher's share of Bowden's underlying net assets. Fisher was willing to make this extra payment because of a recently developed patent held by Bowden with a 15-year remaining life. All other assets were considered...
list of accounts On January 1, 2017, Fisher Corporation purchased 40 percent (90,000 shares) of the...
list of accounts
On January 1, 2017, Fisher Corporation purchased 40 percent (90,000 shares) of the common stock of Bowden, Inc. for $980,000 in cash and began to use the equity method for the investment. The price paid represented a $48,000 payment in excess of the book value of Fisher's share of Bowden's underlying net assets. Fisher was willing to make this extra payment because of a recently developed patent held by Bowden with a 15-year remaining life. All other...
-ms Problem 1-31 (LO 1-1, 1-2, 1-3, 1-4, 1-5d) On January 1, 2017, Fisher Corporation purchased...
-ms Problem 1-31 (LO 1-1, 1-2, 1-3, 1-4, 1-5d) On January 1, 2017, Fisher Corporation purchased 40 percent (74.000 shares) of the common stock of Bowden, Inc. for $976,000 in cash and began to use the equity method for the investment. The price paid represented a $60,000 payment in excess of the book value of Fisher's share of Bowden's underlying net assets. Fisher was willing to make this extra payment because of a recently developed patent held by Bowden with...
Record the annual dividend declared and received from Bowden. Record accrue 2017 income based on 40%...
Record the annual dividend
declared and received from Bowden.
Record accrue 2017 income based on 40% ownership of Bowden.
Record amortization of $60,000 excess patent fair value
[indicated in problem] over 15 years.
Record the entry to accrue ½ year income of 40% ownership.
Record ½ year amortization of patent to establish correct book
value for investment as of 7/1/18.
Record 20,000 shares of Bowden Company sold; investment basis
computed below.
Record annual dividend declared and received.
Record ½ year...
On January 1, 2013, Plano Company acquired 8 percent (28,000 shares) of the outstanding voting shares...
On January 1, 2013, Plano Company acquired 8 percent (28,000 shares) of the outstanding voting shares of the Sumter Company for $476,000, an amount equal to Sumter’s underlying book and fair value. Sumter declares and pays a cash dividend to its stockholders each year of $175,000 on September 15. Sumter reported net income of $350,000 in 2013, $421,200 in 2014, $469,400 in 2015, and $445,300 in 2016. Each income figure can be assumed to have been earned evenly throughout its...
On January 1, 2013, Plano Company acquired 8 percent (16,000 shares) of the outstanding voting shares...
On January 1, 2013, Plano Company acquired 8 percent (16,000 shares) of the outstanding voting shares of the Sumter Company for $192,000, an amount equal to Sumter’s underlying book and fair value. Sumter declares and pays a cash dividend to its stockholders each year of $100,000 on September 15. Sumter reported net income of $300,000 in 2013, $360,000 in 2014, $400,000 in 2015, and $380,000 in 2016. Each income figure can be assumed to have been earned evenly throughout its...
On January 1, 2017, Fisher Corporation purchased 40 percent (90,000 shares) of the common stock of Bowden, Inc. for $980,000 in cash and began to use the equity method for the investment. The price paid represented a $48,000 payment in excess of the book value of Fisher's share of Bowden's underlying net assets. Fisher was willing to make this extra payment because of a recently developed patent held by Bowden with a 15-year remaining life. All other assets were considered...
list of accounts
On January 1, 2017, Fisher Corporation purchased 40 percent (90,000 shares) of the common stock of Bowden, Inc. for $980,000 in cash and began to use the equity method for the investment. The price paid represented a $48,000 payment in excess of the book value of Fisher's share of Bowden's underlying net assets. Fisher was willing to make this extra payment because of a recently developed patent held by Bowden with a 15-year remaining life. All other...
-ms Problem 1-31 (LO 1-1, 1-2, 1-3, 1-4, 1-5d) On January 1, 2017, Fisher Corporation purchased 40 percent (74.000 shares) of the common stock of Bowden, Inc. for $976,000 in cash and began to use the equity method for the investment. The price paid represented a $60,000 payment in excess of the book value of Fisher's share of Bowden's underlying net assets. Fisher was willing to make this extra payment because of a recently developed patent held by Bowden with...
Record the annual dividend
declared and received from Bowden.
Record accrue 2017 income based on 40% ownership of Bowden.
Record amortization of $60,000 excess patent fair value
[indicated in problem] over 15 years.
Record the entry to accrue ½ year income of 40% ownership.
Record ½ year amortization of patent to establish correct book
value for investment as of 7/1/18.
Record 20,000 shares of Bowden Company sold; investment basis
computed below.
Record annual dividend declared and received.
Record ½ year...
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