Homework Answers
| Investment cost | 701000 | |
| Add: Share of 2017 net income | 60800 | =152000*40% |
| Less: 2017 dividends | -24000 | =60000*40% |
| Add: Share of 2018 net income | 60800 | |
| Less: 2018 dividends | -24000 | |
| Add: Share of 2019 net income | 60800 | |
| Less: 2019 dividends | -24000 | |
| Investment in Evan, 12/31/19 | 811400 | |
| Option C $811,400 is correct |
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Evan Company reports net income of $152,000 each year and declares an annual cash dividend of...
Evan Company reports net income of $205,000 each year and declares an annual cash dividend of...
Evan Company reports net income of $205,000 each year and declares an annual cash dividend of $100,000. The company holds net assets of $1,320,000 on January 1, 2017. On that date, Shalina purchases 40 percent of Evan's outstanding common stock for $718,000, which gives it the ability to significantly influence Evan. At the purchase date, the excess of Shalina's cost over its proportionate share of Evan's book value was assigned to goodwill. On December 31, 2019, what is the Investment...
Problem 1-9 (LO 1-3, 1-4) Evan Company reports net income of $206.000 each year and declares...
Problem 1-9 (LO 1-3, 1-4) Evan Company reports net income of $206.000 each year and declares an annual cash dividend of $110,000. The company holds net assets of $1,330,000 on January 1, 2017 On that date, Shalina purchases 40 percent of Evan's outstanding common stock for $706,000, which gives it the ability to significantly influence Evan. At the purchase date, the excess of Shalina's cost over its proportionate share of Evan's book value was assigned to goodwill. On December 31,...
just need the answer and work shown for question 4 please AlphaBeta Co. Company reports net...
just need the answer and work shown for question 4 please
AlphaBeta Co. Company reports net income of $192,000 each year and declares an annual cash dividend of $90,000. The company holds net assets of $1,830,000 on January 1, 2014. On that date, Rebecca purchases 40 percent of the outstanding stock for 5862,000, which gives it the ability to significantly influence AlphaBeta Co.. At the purchase date, the excess of Rebecca's cost over its proportionate share of AlphaBeta Co.'s book...
8 to 11? could you also write a solution The Equity Method of Accounting for Investments...
8 to 11? could you also write a solution
The Equity Method of Accounting for Investments 29 8. Franklin purchases 40 percent of Johnson Company on January 1 for $500,000. Although did not use it, this acquisition gave Franklin the ability to apply sinificant influence to Johnson operating and financing policies. Johnson reports assets on that date of $1.400,000 with lat of $500,000. One building with a seven-year remaining life is undervalued on Johnson's books $140,000. Also, Johnson's book value...
Ecker Company reports $1,375,000 of net income and declares $192,500 of cash dividends on its preferred...
Ecker Company reports $1,375,000 of net income and declares $192,500 of cash dividends on its preferred stock for the year. At year- end, the company had 260,000 weighted-average shares of common stock. 1. What amount of net income is available to common stockholders? 2. What is the company's basic EPS? Complete this question by entering your answers in the tabs below. Required 1 Required 2 ---- What is the company's basic EPS? Basic Earnings per Share Choose Denominator: Choose Numerator:...
Noler Company owns 30% of Lauer Company. For the current year, Lauer reports net income of...
Noler Company owns 30% of Lauer Company. For the current year,
Lauer reports net income of $205,000 and declares and pays a
$41,000 cash dividend.
Record Noler’s equity in Lauer’s net income and the receipt of
dividends from Lauer. (Credit account titles are
automatically indented when the amount is entered. Do not indent
manually. If no entry is required, select "No entry" for the
account titles and enter 0 for the
amounts.)
Account Titles and Explanation Credit Date Debit Dec....
TunaCo purchases 25% of Stanley, Inc. on January 1 of the current year for $505,000. This...
TunaCo purchases 25% of Stanley, Inc. on January 1 of the current year for $505,000. This acquisition gives TunaCo the ability to significantly influence Stanley's operating and financing policies. Stanley reports assets on that date of $1,600,000 with liabilities of $400,000. One building with a 15-year remaining life has a book value of $100,000 and a fair market value of $400,000. Any remaining excess must be Goodwill. During the current year, Stanley reports net income of $140,000 while paying dividends...
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...
Noler Company owns 30% of Lauer Company. For the current year, Lauer reports net income of...
Noler Company owns 30% of Lauer Company. For the current year, Lauer reports net income of $200,000 and declares and pays a $40,000 cash dividend. Record Noler's equity in Lauer's net income and the receipt of dividends from Lauer. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter o for the amounts.) Debit Credit Date Account Titles and Explanation Dec. 31...
Redfield Company reports current earnings of $412,000 while declaring $40,000 in cash dividends. Snedeker Company earns...
Redfield Company reports current earnings of $412,000 while declaring $40,000 in cash dividends. Snedeker Company earns $125,000 in net income and declares $10,000 in dividends. Redfield has held a 70 percent interest in Snedeker for several years, an investment with an acquisition-date excess fair over book value attributable solely to goodwill. Redfield uses the initial value method to account for these shares. On January 1 of the current year, Snedeker acquired in the open market $65,600 of Redfield’s 8 percent...
Evan Company reports net income of $205,000 each year and declares an annual cash dividend of $100,000. The company holds net assets of $1,320,000 on January 1, 2017. On that date, Shalina purchases 40 percent of Evan's outstanding common stock for $718,000, which gives it the ability to significantly influence Evan. At the purchase date, the excess of Shalina's cost over its proportionate share of Evan's book value was assigned to goodwill. On December 31, 2019, what is the Investment...
Problem 1-9 (LO 1-3, 1-4) Evan Company reports net income of $206.000 each year and declares an annual cash dividend of $110,000. The company holds net assets of $1,330,000 on January 1, 2017 On that date, Shalina purchases 40 percent of Evan's outstanding common stock for $706,000, which gives it the ability to significantly influence Evan. At the purchase date, the excess of Shalina's cost over its proportionate share of Evan's book value was assigned to goodwill. On December 31,...
just need the answer and work shown for question 4 please
AlphaBeta Co. Company reports net income of $192,000 each year and declares an annual cash dividend of $90,000. The company holds net assets of $1,830,000 on January 1, 2014. On that date, Rebecca purchases 40 percent of the outstanding stock for 5862,000, which gives it the ability to significantly influence AlphaBeta Co.. At the purchase date, the excess of Rebecca's cost over its proportionate share of AlphaBeta Co.'s book...
8 to 11? could you also write a solution
The Equity Method of Accounting for Investments 29 8. Franklin purchases 40 percent of Johnson Company on January 1 for $500,000. Although did not use it, this acquisition gave Franklin the ability to apply sinificant influence to Johnson operating and financing policies. Johnson reports assets on that date of $1.400,000 with lat of $500,000. One building with a seven-year remaining life is undervalued on Johnson's books $140,000. Also, Johnson's book value...
Ecker Company reports $1,375,000 of net income and declares $192,500 of cash dividends on its preferred stock for the year. At year- end, the company had 260,000 weighted-average shares of common stock. 1. What amount of net income is available to common stockholders? 2. What is the company's basic EPS? Complete this question by entering your answers in the tabs below. Required 1 Required 2 ---- What is the company's basic EPS? Basic Earnings per Share Choose Denominator: Choose Numerator:...
Noler Company owns 30% of Lauer Company. For the current year,
Lauer reports net income of $205,000 and declares and pays a
$41,000 cash dividend.
Record Noler’s equity in Lauer’s net income and the receipt of
dividends from Lauer. (Credit account titles are
automatically indented when the amount is entered. Do not indent
manually. If no entry is required, select "No entry" for the
account titles and enter 0 for the
amounts.)
Account Titles and Explanation Credit Date Debit Dec....
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...
Noler Company owns 30% of Lauer Company. For the current year, Lauer reports net income of $200,000 and declares and pays a $40,000 cash dividend. Record Noler's equity in Lauer's net income and the receipt of dividends from Lauer. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter o for the amounts.) Debit Credit Date Account Titles and Explanation Dec. 31...
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