On January 1, 2018, Fisher Corporation paid $2,877,000 for 35 percent of the outstanding voting stock...
On January 1, 2018, Fisher Corporation paid $2,877,000 for 35 percent of the outstanding voting stock of Steel, Inc., and appropriately applies the equity method for its investment. Any excess of cost over Steel's book value was attributed to goodwill. During 2018, Steel reports $808,000 in net income and a $997,000 other comprehensive income loss. Steel also declares and pays $21,000 in dividends.
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What amount should Fisher report as its Investment in Steel on its December 31, 2018, balance sheet?
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What amount should Fisher report as Equity in Earnings of Steel on its 2018 income statement?
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On January 1, 2018, Fisher Corporation paid $2,877,000 for 35
percent of the outstanding voting stock...
On January 1, 2018, Fisher Corporation paid $2,590,000 for 30 percent of the outstanding voting stock...
On January 1, 2018, Fisher Corporation paid $2,590,000 for 30 percent of the outstanding voting stock of Steel, Inc., and appropriately applies the equity method for its investment. Any excess of cost over Steel's book value was attributed to goodwill. During 2018, Steel reports $756,000 in net income and a $1,070,000 other comprehensive income loss. Steel also declares and pays $22,000 in dividends. a. What amount should Fisher report as its Investment in Steel on its December 31, 2018, balance...
On January 1, 2018, Fisher Corporation paid $2,559,000 for 31 percent of the outstanding voting stock...
On January 1, 2018, Fisher Corporation paid $2,559,000 for 31 percent of the outstanding voting stock of Steel, Inc,,and appropriately applies the equity method for its investment. Any excess of cost over Steel's book value was attributed to goodwill. During 2018, Steel reports $775,000 in net income and a $1,020,000 other comprehensive income loss. Steel also declares and pays $23,000 in dividends a. What amount should Fisher report as its Investment in Steel on its December 31, 2018, balance sheet?...
Accounting
On January 1, 2021, Fisher Corporation paid $2,548,000 for 31 percent of the outstanding voting stock of Steel, Inc., and appropriately applied the equity method for its investment. Any excess of cost over Steel’s book value was attributed to goodwill. During 2021, Steel reports $680,000 in net income and a $1,027,000 other comprehensive income loss. Steel also declares and pays $21,000 in dividends. What amount should Fisher report as its Investment in Steel on its December 31, 2021, balance sheet?What...
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...
Potash Corporation acquired the voting stock of Safestyle Company on January 1, 2019 for $50 million....
Potash Corporation acquired the voting stock of Safestyle Company on January 1, 2019 for $50 million. Safestyle's book value at the time was $10 million, consisting of $2 million of capital stock and $8 million of retained earnings. The $40 million difference between fair and book value was attributed to goodwill. It is now December 31, 2020, the end of the accounting year and two years after the acquisition. Safestyle's January 1, 2020 retained earnings balance is $11 million, and...
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...
Case IV: Franklin Corporation owns 15% of the voting stock of Grantham Company and has been...
Case IV: Franklin Corporation owns 15% of the voting stock of Grantham Company and has been reporting it as an equity investment with no significant influence. At the beginning of the current year, the investment has a fair value of $50,000,000 Franklin originally purchased its 15% interest for $35,000,000. Franklin purchases an additional 10% interest in Grantham's voting stock for $40,000,000 and determines that the equity method is now appropriate. Any basis difference is attributed to goodwill. Grantham reports net...
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, 2018, Fisher Corporation paid $2,590,000 for 30 percent of the outstanding voting stock of Steel, Inc., and appropriately applies the equity method for its investment. Any excess of cost over Steel's book value was attributed to goodwill. During 2018, Steel reports $756,000 in net income and a $1,070,000 other comprehensive income loss. Steel also declares and pays $22,000 in dividends. a. What amount should Fisher report as its Investment in Steel on its December 31, 2018, balance...
On January 1, 2018, Fisher Corporation paid $2,559,000 for 31 percent of the outstanding voting stock of Steel, Inc,,and appropriately applies the equity method for its investment. Any excess of cost over Steel's book value was attributed to goodwill. During 2018, Steel reports $775,000 in net income and a $1,020,000 other comprehensive income loss. Steel also declares and pays $23,000 in dividends a. What amount should Fisher report as its Investment in Steel on its December 31, 2018, balance sheet?...
Case IV: Franklin Corporation owns 15% of the voting stock of Grantham Company and has been reporting it as an equity investment with no significant influence. At the beginning of the current year, the investment has a fair value of $50,000,000 Franklin originally purchased its 15% interest for $35,000,000. Franklin purchases an additional 10% interest in Grantham's voting stock for $40,000,000 and determines that the equity method is now appropriate. Any basis difference is attributed to goodwill. Grantham reports net...
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...
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