please full calculation and explanation
Homework Answers
| Jan-02-20 | Investment in Saturn A/c Dr | 10986 | |||
| Intangible Assets Ac Dr | 879 | ||||
| To Cash A/c | 11865 | ||||
| Purchase of Investment in Saturn | |||||
| Nov-30-20 | Cash A/c Dr | 59.25 | |||
| To Investment Revenue | 59.25 | ||||
| Dividend received from Saturn | |||||
| Dec-31-20 | Investment in Saturn A/c Dr | 133.5 | |||
| To Investment Revenue | 133.5 | ||||
| Recorded the Investment revenue Accrued | |||||
| Dec-31-20 | Investment Expenses A/c Dr | 43.95 | |||
| To Intangible Assets | 43.95 | ||||
| Amortization of intangible Assets | |||||
Calculation
| Carrying Value of Saturn's Assets | 43,944.00 | |
| Mercury Corp share of purchase | 0.25 | |
| Mercury Net investment in Saturn | =43944*25% | 10,986.00 |
| Purchase Expenditure | =11865-10986 | 879.00 |
| Mercury's portion of dividend | =237*25% | 59.25 |
| Mercury's portion of Net income | =771*25% | 192.75 |
| Dividend received | 59.25 | 59.25 |
| Net Receivable from Investment | 133.50 | |
| Purchase Expenditure | 879.00 | |
| Life Years | 20.00 | |
| Intangible Amortization Per year | =879/20 | 43.95 |
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please full calculation and explanation
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