Balance in Cunningham's Equity Investment account | 720000 | |
Less: Share of Net income | -112500 | =450000*25% |
Add: Dividends received | 45000 | =180000*25% |
Amount Cunningham pay for its 25% interest in Durham | 652500 |
On January 1, 2016, Cunningham Co, purchased 25% of Durham Corp.'s common stock at book value...
On January 1, 2018, Strait Corp. purchased 100% of the outstanding common stock of Amarillo Company. On the date of the acquisition, Amarillo’ identifiable net assets had fair values that approximated their recorded book values. The acquisition resulted in no goodwill. Strait Corp. uses the cost method to account for its investment in Amarillo Company. The following financial statement information is for Amarillo Company for the year ended December 31, 2019: 2019 2018 Revenues $100,000 $120,000 Expenses 47,000 65,000 Net...
On January 1, 2018, Strait Corp. purchased 100% of the outstanding common stock of Amarillo Company. On the date of the acquisition, Amarillo’ identifiable net assets had fair values that approximated their recorded book values. The acquisition resulted in no goodwill. Strait Corp. uses the cost method to account for its investment in Amarillo Company. The following financial statement information is for Amarillo Company for the year ended December 31, 2019: 2019 2018 Revenues $100,000 $120,000 Expenses 47,000 65,000 Net...
Oolie Corp. paid $6 million to acquire a 25% interest in Ketchum Corp. common stock on January 1, 2014. This investment results in Oolie having significant influence over Ketchum’s operations. The book values of Ketchum’s reported net assets approximate their fair values, except for $2 million in identifiable unrecorded intangible assets that have a four-year remaining useful life on January 1, 2014. Ketchum has no unidentifiable intangibles (i.e., there is no implied goodwill). During 2014, Ketchum reports net income of...
Question 15 2 pts On January 1, 2016. Nolan, Inc. purchased 30% of the voting common stock of Bentley Corp. for $400,000. There was no amortization. During 2016, Bentley paid dividends of $15.000 and reported a net loss of $60.000 What is the balance in the Equity Investment account on December 31, 2016? $382.000 • $377,500 $325,000 5413,500
On January 1, 2017, Shamrock Co. purchased 26,000 shares (a 10% interest) in Elton John Corp. for $1,380,000. At the time, the book value and the fair value of John’s net assets were $14,200,000. On July 1, 2018, Shamrock paid $3,000,000 for 52,000 additional shares of John common stock, which represented a 20% investment in John. The fair value of John’s identifiable assets net of liabilities was equal to their carrying amount of $15,500,000. As a result of this transaction,...
On January 1, 2017, Bonita Co. purchased 24,000 shares (a 10% interest) in Elton John Corp. for $1.450.000. At the time, the book value and the fair value of John's net assets were $12,000,000. On July 1, 2018, Bonita paid $2,740,000 for 48,000 additional shares of John common stock, which represented a 20% investment in John. The fair value of John's identifiable assets net of liabilities was equal to their carrying amount of $13,200,000. As a result of this transaction,...
On January 1, 2017, Pearl Co. purchased 23,000 shares (a 10% interest) in Elton John Corp. for $1,330,000. At the time, the book value and the fair value of John’s net assets were $12,300,000. On July 1, 2018, Pearl paid $2,840,000 for 46,000 additional shares of John common stock, which represented a 20% investment in John. The fair value of John’s identifiable assets net of liabilities was equal to their carrying amount of $13,300,000. As a result of this transaction,...
On January 1, 2020, Bramble Co. purchased 22,000 shares (a 10% interest) in Elton John Corp. for $1,400,000. At the time, the book value and the fair value of John’s net assets were $12,000,000.On July 1, 2021, Bramble paid $3,100,000 for 44,000 additional shares of John common stock, which represented a 20% investment in John. As a result of this transaction, Bramble owns 30% of John and can exercise significant influence over John’s operating and financial policies. (Any excess fair value is attributed to goodwill.)John reported the following net income and...
On July 1, Year 1, Denver Corp. purchased 3,000 shares of Eagle Co.'s 10,000 outstanding shares of common stock for $20 per share and did not elect the fair value option. Denver has significant influence over Eagle's operations. On December 15, Year 1, Eagle paid $40,000 in dividends to its common shareholders. Eagle's net income for the year ended December 31, Year 1, was $120,000, earned evenly throughout the year. In its Year 1 income statement, what amount of income...
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%...