3. On 1/1/2015, Choco paid $92,000 to acquire 10% of the voting common stock of Cookie....

Question

Question

3. On 1/1/2015, Choco paid $92,000 to acquire 10% of the voting common stock of Cookie. In 1/1/2016, Choco acquired additiona

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

Answert 30 In 2015, what method should be used to record they investment --> In the year Jols, choco acquires just 104. of th balanes investment = $96.000 3 - The Tournal entry to record for dividady paid by cookie The 30 J at 12/31/2015 - Debitc& ore

Add a comment

Answer 2

Similar Homework Help Questions

3. On 1/1/2015, Choco paid $92,000 to acquire 10% of the voting common stock of Cookie....

3. On 1/1/2015, Choco paid $92,000 to acquire 10% of the voting common stock of Cookie. In 1/1/2016, Choco acquired additional 20% of the voting common stock of Cookie for $210,000. Following is the financial information about Cookie. Book value of net assets 1/1/2015 $800,000 Net income (2015) Net income (2016) $180,000 $210,000 Dividends (2015) Dividends (2016) $80,000 $100,000 Land undervalued 12/31/2015 Land undervalued 12/31/2016 $60,000 $70,000 All excess payment will be recorded using Trademark which has useful life of...
3. On 1/1/2015, Choco paid $92,000 to acquire 10% of the voting common stock of Cookie....

3. On 1/1/2015, Choco paid $92,000 to acquire 10% of the voting common stock of Cookie. In 1/1/2016, Choco acquired additional 20% of the voting common stock of Cookie for $210,000. Following is the financial information about Cookie. Book value of net assets 1/1/2015 $800,000 Net income (2015) Net income (2016) $180,000 $210,000 Dividends (2015) Dividends (2016) $80,000 $100,000 Land undervalued 12/31/2015 Land undervalued 12/31/2016 $60,000 $70,000 All excess payment will be recorded using Trademark which has useful life of...
Q5: Calculate trademark in 2015 that will be recorded in 2016(if any). Q6: Calculate annual amortization...

Q5: Calculate trademark in 2015 that will be recorded in 2016(if any). Q6: Calculate annual amortization of under/overvalued asset and Trademark in 2015. Q7: In 2016, what is the balance of the investment account in Cookie at 12/31/2015 using the equity method? Q8: Calculate trademark in 2016 that will be recorded in 2016(if any). Q9: Calculate annual amortization of under/overvalued asset and Trademark in 2016. Q10: In 2016, what is the balance of the investment account in Cookie at 12/31/2016...

2. On 1/1/2015, Choco paid $150,000 to acquire 40% of the voting common stock of Cookie....

2. On 1/1/2015, Choco paid $150,000 to acquire 40% of the voting common stock of Cookie. Following is the financial information about Cookie. Book value of assets $450,000 Book value of liabilities $125,000 Net income (2015) Net income (2016) $80,000 $100,000 Dividends (2015) Dividends (2016) $40,000 $45,000 Fair market value of investment 1/1/2015 Fair market value of investment 12/31/2016 $160,000 $180,000 Cookie has a patent with book value of $5,000 but actually $25,000 with 8 years remaining life. Q1: What...
On 1/1/2015, Choco paid $150,000 to acquire 40% of the voting common stock of Cookie. Following...

On 1/1/2015, Choco paid $150,000 to acquire 40% of the voting common stock of Cookie. Following is the financial information about Cookie. Book value of assets $450,000 Book value of liabilities $125,000 Net income (2015) Net income (2016) $80,000 $100,000 Dividends (2015) Dividends (2016) $40,000 $45,000 Fair market value of investment 1/1/2015 Fair market value of investment 12/31/2016 $160,000 $180,000 Cookie has a patent with book value of $5,000 but actually $25,000 with 8 years remaining life.\ What is the...
On 1/1/2015, Choco paid $150,000 to acquire 15% of the voting common stock of Cookie. Following...

On 1/1/2015, Choco paid $150,000 to acquire 15% of the voting common stock of Cookie. Following is the financial information about Cookie. Book value of assets $450,000 Book value of liabilities $125,000 Net income (2015) $80,000 Dividends (2015) $40,000 Fair market value of investment 1/1/2015 Fair market value of investment 12/31/2015 $160,000 $180,000 Cookie has a patent with book value of $5,000 but actually $25,000 with 8 years remaining life. Q1: What method should be used to record this investment?...

On January 1, 2018, Jolley Corp. paid $250,000 for 25% of the voting common stock of...

On January 1, 2018, Jolley Corp. paid $250,000 for 25% of the voting common stock of Tige Co. On that date, the book value of Tige was $850,000. A building with a carrying value of $160,000 was actually worth $220,000. The building had a remaining life of twenty years. Tige owned a trademark valued at $90,000 over cost that was to be amortized over 20 years. During 2018, Tige sold to Jolley inventory costing $60,000, at a markup of 50%...
On January 1, 2018, Jolley Corp. paid $250,000 for 25% of the voting common stock of...

On January 1, 2018, Jolley Corp. paid $250,000 for 25% of the voting common stock of Tige Co. On that date, the book value of Tige was $850,000. A building with a carrying value of $160,000 was actually worth $220,000. The building had a remaining life of twenty years. Tige owned a trademark valued at $90,000 over cost that was to be amortized over 20 years. During 2018, Tige sold to Jolley inventory costing $60,000, at a markup of 50%...
Q2: On January 1, 2018, Jolley Corp. paid $250,000 for 25% of the voting common stock...

Q2: On January 1, 2018, Jolley Corp. paid $250,000 for 25% of the voting common stock of Tige Co. On that date, the book value of Tige was $850,000. A building with a carrying value of $160,000 was actually worth $220,000. The building had a remaining life of twenty years. Tige owned a trademark valued at $90,000 over cost that was to be amortized over 20 years. During 2018, Tige sold to Jolley inventory costing $60,000, at a markup of...

On 1/1/20x1, Living Technologies Company purchased a 12% investment in the voting common stock of Home...

On 1/1/20x1, Living Technologies Company purchased a 12% investment in the voting common stock of Home Solutions, Inc. for cash of $102,000. Home Solutions' common stock trades on a nationally recognized stock exchange and the fair value is readily determinable. At the time of Living Technologies' investment, Home Solution's book value was $850,000. With its 12% investment, Living Technologies Company did not retain significant influence over the financing and operating policies of Home Solutions. On 1/1/20x3, Living Technologies Company purchased...

3. On 1/1/2015, Choco paid $92,000 to acquire 10% of the voting common stock of Cookie....

Homework Answers