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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 Home Solutions,...
On 1/1/20x1, Living Technologies Company purchased a 12% investment in the voting common stock 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 an...
Problem 2 (30 points) On 1/1/20x1, Living Technologies Company purchased a 12% investment in the voting...
Problem 2 (30 points) On 1/1/20x1, Living Technologies Company purchased a 12% investment in the voting common stock of Home Solutions, Inc. for cash of S102.000. 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,...
Problem 2 (30 points) On 1/1/20x1, Living Technologies Company purchased a 12% investment in the voting...
Problem 2 (30 points) On 1/1/20x1, Living Technologies Company purchased a 12% investment in the voting common stock of Home Solutions, Inc. for cash of S102,000 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,...
Public Corporation acquired 90 percent of Station Company’s voting common stock on January 1, 20X1, for...
Public Corporation acquired 90 percent of Station Company’s voting common stock on January 1, 20X1, for $486,000. At the time of the combination, Station reported common stock outstanding of $120,000 and retained earnings of $380,000, and the fair value of the noncontrolling interest was $54,000. The book value of Station's net assets approximated market value except for patents that had a market value of $40,000 more than their book value. The patents had a remaining economic life of five years...
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 S800,000 Net income (2015) Net income (2016) Dividends (2015) Dividends (2016) S180,000 S210,000 S80,000 S100,000 S60,000 Land undervalued 12/31/2015 Land undervalued 12/31/2016 S70,000 All excess payment will be recorded using Trademark which has useful life of...
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?...
PROBLEM 4 Gull Company purchased the net assets of Hart Company on January 1, 20X1, and...
PROBLEM 4 Gull Company purchased the net assets of Hart Company on January 1, 20X1, and made the following entry to record the purchase: Current Assets.... Equipment. Land. Buildings...... Goodwill.. Liabilities.... Common Stock (54 par). Paid-In Capital in Excess of Par.... 100,000 150,000 50,000 300,000 100,000 80,000 100,000 520,000 Make the required entry on the given dates, for each of the following independent contingency agreements: 1. An additional cash payment would be made on January 1, 20X4, equal to thrice...
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...
Pizza Corporation purchased 100 percent of the common stock of Slice Corporation on January 1, 20X2,...
Pizza Corporation purchased 100 percent of the common stock of Slice Corporation on January 1, 20X2, by issuing 48,000 shares of its $7 par value common stock. The market price of Pizza’s shares at the date of issue was $26. Slice reported net assets with a book value of $1,136,000 on that date. The amount paid in excess of the book value of Slice’s net assets was attributed to the increased value of patents held by Slice with a remaining...
On 1/1/20x1, Living Technologies Company purchased a 12% investment in the voting common stock 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 an...
Problem 2 (30 points) On 1/1/20x1, Living Technologies Company purchased a 12% investment in the voting common stock of Home Solutions, Inc. for cash of S102.000. 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,...
Problem 2 (30 points) On 1/1/20x1, Living Technologies Company purchased a 12% investment in the voting common stock of Home Solutions, Inc. for cash of S102,000 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,...
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 S800,000 Net income (2015) Net income (2016) Dividends (2015) Dividends (2016) S180,000 S210,000 S80,000 S100,000 S60,000 Land undervalued 12/31/2015 Land undervalued 12/31/2016 S70,000 All excess payment will be recorded using Trademark which has useful life of...
PROBLEM 4 Gull Company purchased the net assets of Hart Company on January 1, 20X1, and made the following entry to record the purchase: Current Assets.... Equipment. Land. Buildings...... Goodwill.. Liabilities.... Common Stock (54 par). Paid-In Capital in Excess of Par.... 100,000 150,000 50,000 300,000 100,000 80,000 100,000 520,000 Make the required entry on the given dates, for each of the following independent contingency agreements: 1. An additional cash payment would be made on January 1, 20X4, equal to thrice...
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...
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