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Port Company purchased 32,700 of the 109,000 outstanding shares of Sund Company common stock on January...
Port Company purchased 44,400 of the 111,000 outstanding shares of Sund Company common stock on January...
Port Company purchased 44,400 of the 111,000 outstanding shares of Sund Company common stock on January 1, 20X2, for $196,000. The purchase price was equal to the book value of the shares purchased. Sund reported the following: Year Net Income Dividends 20X2 $ 41,000 $ 26,000 20X3 31,000 20X4 7,000 Required: Compute the amounts Port Company should report as the carrying values of its investment in Sund Company at December 31, 20X2, 20X3, and 20X4.
Port Company purchased 31,500 of the 105,000 outstanding shares of Sund Company common stock on January...
Port Company purchased 31,500 of the 105,000 outstanding shares of Sund Company common stock on January 1, 20x2, for $190,000. The purchase price was equal to the book value of the shares purchased. Sund reported the following: Year 20x2 20x3 20x4 Dividends $ 43,000 Net Income $ 58,000 48,000 9,000 Required: Compute the amounts Port Company should report as the carrying values of its investment in Sund Company at December 31, 20X2, 20X3, and 20X4 Amounts 20x2 20x3 20X4
Winston Corporation purchased 40 percent of the stock of Fullbright Company on January 1, 20X2, at...
Winston Corporation purchased 40 percent of the stock of Fullbright Company on January 1, 20X2, at underlying book value. During the period of January 1, 20X2, through December 31, 20X4, the market value of Winston's investment in Fullbright's stock increased by $20,000 each year. The companies reported the following operating results and dividend payments during the first three years of intercorporate ownership: Winston Corporation Fullbright Company Year Operating Income Dividends Net Income Dividends 20X2 $ 100,000 $ 40,000 $ 70,000...
Winston Corporation purchased 40 percent of the stock of Fullbright Company on January 1, 20X2, at...
Winston Corporation purchased 40 percent of the stock of Fullbright Company on January 1, 20X2, at underlying book value. During the period of January 1, 20X2, through December 31, 20X4, the market value of Winston's investment in Fullbright's stock increased by $20,000 each year. The companies reported the following operating results and dividend payments during the first three years of intercorporate ownership: Year 20X2 20x3 20x4 Winston Corporation Operating Income Dividends $100,000 $ 40,000 60,000 80,000 250,000 120,000 Fullbright Company...
Winston Corporation purchased 40 percent of the stock of Fullbright Company on January 1, 20X2, at...
Winston Corporation purchased 40 percent of the stock of Fullbright Company on January 1, 20X2, at underlying book value. During the period of January 1, 20X2, through December 31, 20X4, the market value of Winston's investment in Fullbright's stock increased by $20,000 each year. The companies reported the following operating results and dividend payments during the first three years of intercorporate ownership: Winston Corporation Fullbright Company Year Operating Income Dividends Net Income Dividends 20X2 $ 100,000 $ 40,000 $ 70,000...
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 January 1, 2020, Redmond Company purchased 3,000 of the 15,000 outstanding shares of common stock...
On January 1, 2020, Redmond Company purchased 3,000 of the 15,000 outstanding shares of common stock of Decca Computer (DC) Corporation for $80,000 cash as a long-term investment (the only long-term equity invest- ment held). The assets and liabilities of DC Corporation at the date of purchase approximate fair value. During 2020, DC reported net income of $25,000 and declared and paid cash dividends of $10,000. The fair value of DC Corporation at December 31, 2020, was $25 per share....
Cost versus Equity Reporting Winston Corporation purchased 40 percent of the stock of Fullbright Company on...
Cost versus Equity Reporting Winston Corporation purchased 40 percent of the stock of Fullbright Company on January 1, 20X2, at underlying book value. The companies reported the following operating results and dividend payments during the first three years of intercorporate ownership Winston Corporation Fullbright Company Year Operating Income DividendsNet Income Dividends 20X2 $100,000 40,000 70,000$30,000 0,000 60,000 20X3 80,000 20X4 250,000 120,000 25,00050,000 Required Compute the net income reported by Winston for each of the three years, assuming it accounts...
Gant Company purchased 30 percent of the outstanding shares of Temp Company for $74,000 on January...
Gant Company purchased 30 percent of the outstanding shares of Temp Company for $74,000 on January 1, 20X6. The following results are reported for Temp Company: 20X6 20X7 20X8 Net income $ 41,000 $ 36,000 $ 53,000 Dividends paid 10,000 26,000 15,000 Fair value of shares held by Gant: January 1 74,000 93,000 90,000 December 31 93,000 90,000 101,000 Required: Determine the amounts reported by Gant as income from its investment in Temp for each year and the...
(a) carrying the investment at FAIR VALUE please do not copy others answer, thank you. Chapter...
(a) carrying the investment at FAIR VALUE
please do not copy others answer, thank you.
Chapter 2 Reporting Intercorporate Investments and Consolidation of Wholly Owned Subsidiaries with No Differential 85 E2-4 Carrying an Investment at Fair Value versus Equity Method Reporting Winston Corporation purchased 40 percent of the stock of Fullbright Company on January 1, 20X2, at underlying book value. During the period of January 1, 20X2, through December 31, 20X4, the market value of Winston's investment in Fullbright's stock...
Port Company purchased 31,500 of the 105,000 outstanding shares of Sund Company common stock on January 1, 20x2, for $190,000. The purchase price was equal to the book value of the shares purchased. Sund reported the following: Year 20x2 20x3 20x4 Dividends $ 43,000 Net Income $ 58,000 48,000 9,000 Required: Compute the amounts Port Company should report as the carrying values of its investment in Sund Company at December 31, 20X2, 20X3, and 20X4 Amounts 20x2 20x3 20X4
Winston Corporation purchased 40 percent of the stock of Fullbright Company on January 1, 20X2, at underlying book value. During the period of January 1, 20X2, through December 31, 20X4, the market value of Winston's investment in Fullbright's stock increased by $20,000 each year. The companies reported the following operating results and dividend payments during the first three years of intercorporate ownership: Year 20X2 20x3 20x4 Winston Corporation Operating Income Dividends $100,000 $ 40,000 60,000 80,000 250,000 120,000 Fullbright Company...
On January 1, 2020, Redmond Company purchased 3,000 of the 15,000 outstanding shares of common stock of Decca Computer (DC) Corporation for $80,000 cash as a long-term investment (the only long-term equity invest- ment held). The assets and liabilities of DC Corporation at the date of purchase approximate fair value. During 2020, DC reported net income of $25,000 and declared and paid cash dividends of $10,000. The fair value of DC Corporation at December 31, 2020, was $25 per share....
Cost versus Equity Reporting Winston Corporation purchased 40 percent of the stock of Fullbright Company on January 1, 20X2, at underlying book value. The companies reported the following operating results and dividend payments during the first three years of intercorporate ownership Winston Corporation Fullbright Company Year Operating Income DividendsNet Income Dividends 20X2 $100,000 40,000 70,000$30,000 0,000 60,000 20X3 80,000 20X4 250,000 120,000 25,00050,000 Required Compute the net income reported by Winston for each of the three years, assuming it accounts...
(a) carrying the investment at FAIR VALUE
please do not copy others answer, thank you.
Chapter 2 Reporting Intercorporate Investments and Consolidation of Wholly Owned Subsidiaries with No Differential 85 E2-4 Carrying an Investment at Fair Value versus Equity Method Reporting Winston Corporation purchased 40 percent of the stock of Fullbright Company on January 1, 20X2, at underlying book value. During the period of January 1, 20X2, through December 31, 20X4, the market value of Winston's investment in Fullbright's stock...
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