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Question 15 2 pts On January 1, 2016. Nolan, Inc. purchased 30% of the voting common...
On January 1, 2017, James Company purchased 100 percent of the outstanding voting stock of Nolan,...
On January 1, 2017, James Company purchased 100 percent of the outstanding voting stock of Nolan, Inc., for $1,000,000 in cash and other consideration. At the purchase date, Nolan had common stock of $500,000 and retained earnings of $185,000. James attributed the excess of acquisition-date fair value over Nolan’s book value to a trade name with an estimated 25-year remaining useful life. James uses the equity method to account for its investment in Nolan. During the next two years, Nolan...
On January 1, 2016, Cunningham Co, purchased 25% of Durham Corp.'s common stock at book value...
On January 1, 2016, Cunningham Co, purchased 25% of Durham Corp.'s common stock at book value of net assets. The balance in Cunningham's Equity Investment account was $720,000 at December 31, 2016. Durham reported net income of $450,000 for the year ended December 31 2016, and paid dividends totaling $180,000 during 2016. How much did Cunningham pay for its 25% interest in Durham?
On January 1, 2010, X Inc. purchased 25% of the voting shares of Y Inc. for...
On January 1, 2010, X Inc. purchased 25% of the voting shares of Y Inc. for $100,00 investment is reported using the equity method, as a na It is reported using the equity method, as X has significant influence over Y. Y's net income and declared dividends for the following three years are as follows: 2010 2011 2012 Net Income $50,000 $70,000 $30,000 Dividends $20.000 $80.000 $60,000 What would be the carrying value of X's Investment in Y at the...
37 On January 2, 2021, Barley Corp. purchased 40% of the voting common stock of Wheat...
37 On January 2, 2021, Barley Corp. purchased 40% of the voting common stock of Wheat Co., paying $3,000,000. Barley properly accounts for this investment using the equity method. At the time of the investment, Wheat's total stockholders' equity was $5,000,000. Barley gathered the following information about Wheat's assets and liabilities whose book values and fair values differed: Book Value Fair Value Buildings (20-year life) $1,000,000 $1,800,000 Equipment (5-year life) 1,500,000 2,000,000 Franchises (10-year life) 0 700,000 Any excess of...
Answers given. Can you explain why, with formulas. 1) On January 2, 2020, Maddison Company purchased...
Answers given. Can you explain why, with formulas. 1) On January 2, 2020, Maddison Company purchased 35% of the outstanding common stock of Ellinger, Inc. and subsequently used the equity method to account for the investment. During 2020 Ellinger, Inc. reported net income of $400,000 and distributed dividends of $100,000. The ending balance in the Investment in Ellinger, Inc. account at December 31, 2020 was $500,000 after applying the equity method during 2020. What was the purchase price Maddison paid...
On January 1, 2021, American Corporation purchased 30% of the outstanding voting shares of Short Supplies...
On January 1, 2021, American Corporation purchased 30% of the outstanding voting shares of Short Supplies common stock for $267.000 cash. On that date, Short's book value and fair value were both $890,000. The equity method is deemed appropriate for this investment. Short's net income reported on December 31, 2021, was $85,000. During 2021, Short also paid cash dividends in the amount of $26.500. Required: Compute the amount that would be reported for the investment on American Corporation's financial statements...
RBO Company purchased 25% of the voting common stock of YJD Company on January 1 and paid $800,000 for the investment. Y...
RBO Company purchased 25% of the voting common stock of YJD Company on January 1 and paid $800,000 for the investment. YJD Company reported $50,000 of earnings for the year and paid $10,000 in cash dividends. Calculate investment income and the balance sheet investment account balance for RBO Company using the following method: Equity method. Question 25 options: 812,500 800,000 810,000 none of the above
1. On January 2, 2015, Blue Corp paid $400,000 to purchase 40% of the outstanding voting...
1. On January 2, 2015, Blue Corp paid $400,000 to purchase 40% of the outstanding voting stock of Black Corp. June 1, 2015, Black Corp, paid $35,000 dividend in total, On December 31, 2015, Black Corp. reported $800,000 net loss. (25%) Required: Prepare journal entries for: a. January 2, 2015 b. June 1, 2015 c. December 31, 2015 d. What is the balance on the investment account at December 31, 2015? e. Prepare any necessary adjusting entries if the market...
Question 422 pts On January 1, 2020, Adamson, Inc. acquired the outstanding voting common stock of...
Question 422 pts On January 1, 2020, Adamson, Inc. acquired the outstanding voting common stock of Skyview Corp. for $600,000. Of this payment, $85,000 was allocated to undervalued equipment (with a five-year life). Any remaining excess was attributable to goodwill. During 2020, Adamson bought inventory for $44,000 and sold it to Skyview for $98,500. 60% of these goods were still in the company's possession on December 31. The financial statements of the two companies as of December 31, 2020 are...
On January 2, 2018 Pod Company purchased 25% of the outstanding common stock of Jobs, Inc....
On January 2, 2018 Pod Company purchased 25% of the outstanding common stock of Jobs, Inc. and subsequently used the equity method to account for the investment. During 2018 Jobs, Inc. reported net income of $1,260,000 and distributed dividends of $540,000. The ending balance in the Investment in Pod Company account at December 31, 2018 was $960,000 after applying the equity method during 2018. What was the purchase price Pod Company paid for its investment in Jobs, Inc? Select one:...
On January 1, 2016, Cunningham Co, purchased 25% of Durham Corp.'s common stock at book value of net assets. The balance in Cunningham's Equity Investment account was $720,000 at December 31, 2016. Durham reported net income of $450,000 for the year ended December 31 2016, and paid dividends totaling $180,000 during 2016. How much did Cunningham pay for its 25% interest in Durham?
On January 1, 2010, X Inc. purchased 25% of the voting shares of Y Inc. for $100,00 investment is reported using the equity method, as a na It is reported using the equity method, as X has significant influence over Y. Y's net income and declared dividends for the following three years are as follows: 2010 2011 2012 Net Income $50,000 $70,000 $30,000 Dividends $20.000 $80.000 $60,000 What would be the carrying value of X's Investment in Y at the...
37 On January 2, 2021, Barley Corp. purchased 40% of the voting common stock of Wheat Co., paying $3,000,000. Barley properly accounts for this investment using the equity method. At the time of the investment, Wheat's total stockholders' equity was $5,000,000. Barley gathered the following information about Wheat's assets and liabilities whose book values and fair values differed: Book Value Fair Value Buildings (20-year life) $1,000,000 $1,800,000 Equipment (5-year life) 1,500,000 2,000,000 Franchises (10-year life) 0 700,000 Any excess of...
On January 1, 2021, American Corporation purchased 30% of the outstanding voting shares of Short Supplies common stock for $267.000 cash. On that date, Short's book value and fair value were both $890,000. The equity method is deemed appropriate for this investment. Short's net income reported on December 31, 2021, was $85,000. During 2021, Short also paid cash dividends in the amount of $26.500. Required: Compute the amount that would be reported for the investment on American Corporation's financial statements...
1. On January 2, 2015, Blue Corp paid $400,000 to purchase 40% of the outstanding voting stock of Black Corp. June 1, 2015, Black Corp, paid $35,000 dividend in total, On December 31, 2015, Black Corp. reported $800,000 net loss. (25%) Required: Prepare journal entries for: a. January 2, 2015 b. June 1, 2015 c. December 31, 2015 d. What is the balance on the investment account at December 31, 2015? e. Prepare any necessary adjusting entries if the market...
Question 422 pts On January 1, 2020, Adamson, Inc. acquired the outstanding voting common stock of Skyview Corp. for $600,000. Of this payment, $85,000 was allocated to undervalued equipment (with a five-year life). Any remaining excess was attributable to goodwill. During 2020, Adamson bought inventory for $44,000 and sold it to Skyview for $98,500. 60% of these goods were still in the company's possession on December 31. The financial statements of the two companies as of December 31, 2020 are...
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