On January 1, 2021, Lear Company purchased 37% of Bunker Company's common stock for $360,000. During...
On January 1, 2021, Lear Company purchased 37% of Bunker Company's common stock for $360,000. During 2021, Bunker Company reported a net income of $129,000 and paid dividends totaling $43,000. In 2022, Bunker Company reported a net income of $81,000 and paid dividends totaling $17,000. On December 31, 2022, Lear Company sold one-fourth of its investment in Bunker Company for $112,970 cash. Calculate the amount of the realized gain reported in Lear Company's 2022 income statement resulting from the sale of the Bunker Company stock. Do not enter your answer in carmen with a minus sign in front of your number.
Homework Answers
| Cost of purchased stock | $ 360,000 |
| Add: Share in net income in 2021 (129000*37%) | $ 47,730 |
| Less: Dividend received in 2021 (43000*37%) | $ (15,910) |
| Book value of equity investment at the end of 2021 | $ 391,820 |
| Book value of equity investment at beginning of 2022 | $ 391,820 |
| Add: Share in net income in 2022 (81000*37%) | $ 29,970 |
| Less: Dividend received in 2022 (17000*37%) | $ (6,290) |
| Book value of equity investment at the end of 2022 | $ 415,500 |
| Cash received from one-fourth investment sold | $ 112,970 |
| Less: Book value of equity investment for one-fourth investment sold (415500*1/4) | $ 103,875 |
| Amount of the realized gain reported in Lear Company's 2022 income statement resulting from the sale of the Bunker Company stock | $ 9,095 |
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On January 1, 2021, Lear Company purchased 37% of Bunker
Company's common stock for $360,000. During...
On January 1, 2021, Lear Company purchased 37% of Bunker Company's common stock for $360,000. During...
On January 1, 2021, Lear Company purchased 37% of Bunker Company's common stock for $360,000. During 2021, Bunker Company reported a net income of $129,000 and paid dividends totaling $43,000. In 2022, Bunker Company reported a net income of $81,000 and paid dividends totaling $17,000. On December 31, 2022, Lear Company sold one-fourth of its investment in Bunker Company for $112,970 cash. Calculate the amount of investment revenue related to the investment in Bunker Company reported on Lear Company's 2021...
Question 7 On January 1, 2021, Lear Company purchased 37% of Bunker Company's common stock for...
Question 7 On January 1, 2021, Lear Company purchased 37% of Bunker Company's common stock for $360,000. During 2021, Bunker Company reported a net income of $129,000 and paid dividends totaling $43 ,000. In 2022, Bunker Company reported a net income of $81,000 and paid dividends totaling $17,000. On December 31, 2022, Lear Company sold one-fourth of its investment 'in Bunker Company for $112,970 cash . Calculate the amount of the realized gain reported in Lear Company 's 2022 income...
Question 6 On January 1, 2021, Lear Company purchased 37% of Bunker Company's common stock for...
Question 6 On January 1, 2021, Lear Company purchased 37% of Bunker Company's common stock for $360,000. During 2021, Bunker Company reported a net income of $129,000 and paid dividends totaling $43,000. In 2022, Bunker Company reported a net income of $81,000 and paid dividends totaling $17,000. On December 31, 2022, Lear Company sold one-fourth of its investment in Bunker Company for $112,970 cash. Calculate the amount of investment revenue related to the investment in Bunker Company reported on Lear...
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Question 7 On January 1, 2021, Lear Company purchased 37% of Bunker Company's common stock for $360,000. During 2021, Bunker Company reported a net income of $129,000 and paid dividends totaling $43 ,000. In 2022, Bunker Company reported a net income of $81,000 and paid dividends totaling $17,000. On December 31, 2022, Lear Company sold one-fourth of its investment 'in Bunker Company for $112,970 cash . Calculate the amount of the realized gain reported in Lear Company 's 2022 income...
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I'm not sure with my answer (I'm not that familiar
with the equity method)
On January 1, 2021, Lear Company purchased 37% of Bunker Company's common stock for $360,000. During 2021, Bunker Company reported a net income of $129,000 and paid dividends totaling $43,000. In 2022, Bunker Company reported a net income of $81,000 and paid dividends! totaling $17,000. On December 31, 2022, Lear Company sold one-fourth of its investment in Bunker Company for $112,970 cash. Calculate the amount of...
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