Larkland Company acquired 30% of the voting stock of Martin Corporation on January 2, 2017 for...
- Larkland Company acquired 30% of the voting stock of Martin Corporation on January 2, 2017 for $50 million. The basis difference was attributed to goodwill. During 2017, Martin Corporation reported net income of $5,000,000, other comprehensive income of $150,000, and declared and paid cash dividends of $2,000,000. Larkland uses the equity method to report its investment in Martin. Prepare Larkland’s 2017 journal entries related to its investment in Martin.
Homework Answers
Journal entries as follows:
Add Answer to:
Larkland Company acquired 30% of the voting stock of Martin
Corporation on January 2, 2017 for...
m #3 (15 points) On January 2, 2017 Cornwall Corporation acquired 35% of the ve in...
m #3 (15 points) On January 2, 2017 Cornwall Corporation acquired 35% of the ve in cash, when Kingston's total book valu intangibles. he voting stock of Kingston Company for $4,000,000 Eston's total book value was $20,00000. The basis difference was attributed to indefinite life During 2017 Kingston reported total net income of $600.000 and paid and paid total dividends of $200,000. Kingston also 13,000 in unrealized losses on AFS securities Kingston sold $5,000,000 in merchandise to Cornwall at a...
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...
15. On January 1, 2017, Ridge Road Company acquired 20 percent of the voting shares of...
15. On January 1, 2017, Ridge Road Company acquired 20 percent of the voting shares of Sauk Trail, Inc., for $2,700,000 in cash. Both companies provide commercial Internet support services but serve markets in different industries. Ridge Road made the investment to gain access to Sauk Trail's board of directors and thus facilitate future cooperative agreements between the two firms. Ridge Road quickly obtained several seats on Sauk Trail's board which gave it the ability to significantly influence Sauk Trail's...
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. Safestyle...
Park Corporation acquired the voting stock of Sequoia Company on January 1, 2020 for $25 million...
Park Corporation acquired the voting stock of Sequoia Company on January 1, 2020 for $25 million in cash and stock. At the date of acquisition, Sequoia's book value totaled $3 million, consisting of $1.6 million in capital stock, $1.8 million in retained earnings, and $400,000 in accumulated other comprehensive losses. Sequoia's reported net assets at the date of acquisition were carried at amounts approximating fair value, except its inventory was overvalued by $500,000 (sold in 2020), its plant assets (10-year...
On January 1, 2017, Ridge Road Company acquired 30 percent of the voting shares of Sauk...
On January 1, 2017, Ridge Road Company acquired 30 percent of the voting shares of Sauk Trail, Inc., for $4,400,000 in cash. Both companies provide commercial Internet support services but serve markets in different industries. Ridae Road made the investment to gain access to Sauk Trail's board of directors and thus facilitate future cooperative agreements between the two firms. Ridge Road quickly obtained several seats on Sauk Trail's board which gave it the ability to significantly influence Sauk Trail's operating...
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...
Park Corporation acquired the voting stock of Sequoia Company on January 1, 2020 for $25 million...
Park Corporation acquired the voting stock of Sequoia Company on January 1, 2020 for $25 million in cash and stock. At the date of acquisition, Sequoia's book value totaled $3 million, consisting of $1.6 million in capital stock, $1.8 million in retained earnings, and $400,000 in accumulated other comprehensive losses. Sequoia's reported net assets at the date of acquisition were carried at amounts approximating fair value, except its inventory was overvalued by $500,000 (sold in 2020), its plant assets (10-year...
Total of 7 questions. See attached photos of questions. Case I: Grant Company acquired 40% of...
Total of 7 questions. See attached photos of questions.
Case I: Grant Company acquired 40% of the voting stock of Jake Corporation on January 1, 2016, for $50,000,000. Basis differences were attributed entirely to goodwill. During the 5- year period from January 1, 2016 through December 31, 2020, Jake reported total net income of $23,000,000 and paid $8,000,000 in dividends. During 2021, Jake reported net income of $3,000,000 and paid $800,000 in dividends. Required: a. Calculate the balance in Investment...
Saxton Corporation purchased 30 percent of Taylor Company’s voting stock on January 1, 2016, for $4...
Saxton Corporation purchased 30 percent of Taylor Company’s voting stock on January 1, 2016, for $4 million in cash. At the date of acquisition, Taylor reported its total assets at $80 million and its total liabilities at $74 million. Investigation revealed that Taylor’s plant and equipment (10-year life) was overvalued by $2 million and it had an unreported customer database (3-year life) valued at $700,000. Taylor declares and pays $150,000 in dividends and reports net income of $325,000 in 2019....
m #3 (15 points) On January 2, 2017 Cornwall Corporation acquired 35% of the ve in cash, when Kingston's total book valu intangibles. he voting stock of Kingston Company for $4,000,000 Eston's total book value was $20,00000. The basis difference was attributed to indefinite life During 2017 Kingston reported total net income of $600.000 and paid and paid total dividends of $200,000. Kingston also 13,000 in unrealized losses on AFS securities Kingston sold $5,000,000 in merchandise to Cornwall at a...
15. On January 1, 2017, Ridge Road Company acquired 20 percent of the voting shares of Sauk Trail, Inc., for $2,700,000 in cash. Both companies provide commercial Internet support services but serve markets in different industries. Ridge Road made the investment to gain access to Sauk Trail's board of directors and thus facilitate future cooperative agreements between the two firms. Ridge Road quickly obtained several seats on Sauk Trail's board which gave it the ability to significantly influence Sauk Trail's...
On January 1, 2017, Ridge Road Company acquired 30 percent of the voting shares of Sauk Trail, Inc., for $4,400,000 in cash. Both companies provide commercial Internet support services but serve markets in different industries. Ridae Road made the investment to gain access to Sauk Trail's board of directors and thus facilitate future cooperative agreements between the two firms. Ridge Road quickly obtained several seats on Sauk Trail's board which gave it the ability to significantly influence Sauk Trail's operating...
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...
Total of 7 questions. See attached photos of questions.
Case I: Grant Company acquired 40% of the voting stock of Jake Corporation on January 1, 2016, for $50,000,000. Basis differences were attributed entirely to goodwill. During the 5- year period from January 1, 2016 through December 31, 2020, Jake reported total net income of $23,000,000 and paid $8,000,000 in dividends. During 2021, Jake reported net income of $3,000,000 and paid $800,000 in dividends. Required: a. Calculate the balance in Investment...
Most questions answered within 3 hours.
-
You working as a clinical engineer dealing with
autoclaves, xrays and life care machines, in what...
asked 28 seconds from now -
Explain in detail (not just enumerate) each of Koch’s
postulates to determine the etiology of a...
asked 11 minutes ago -
Assume ABC Company has asked you to not only prepare their 2017
year-end Balance Sheet but...
asked 9 minutes ago -
You have just had a new set of tires put on your car, and now
the...
asked 14 minutes ago -
Please answer ASAP 2) Choose a point at random from the unit
square [0, 1] ×...
asked 29 minutes ago -
Draw the Lewis structures and determine which of these
molecules has a central atom that unavoidably...
asked 29 minutes ago -
Do we typically carry antibodies against the RH antigen in our
blood plasma?
asked 32 minutes ago -
What are the differences between an antibiotic, a semisynthetic,
and a synthetic as types of antimicrobials?
asked 28 minutes ago -
One mole of oxygen gas is at a pressure of 5.90 atm and a
temperature of...
asked 35 minutes ago -
The primary side of a transformer has 935 turns and is connected
to 118 Volts A/C....
asked 34 minutes ago -
This must be done in Java and it must contain a public static
void (string []args)...
asked 37 minutes ago -
An economy has a Cobb–Douglas production function:
Y=Kα(LE)1−αY=Kα(LE)1−α
The economy has a capital share of 0.30,...
asked 52 minutes ago