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Fair value and equity methods
ic) Fair Value and Equity Methods Nadal Corporation purchased 9,000 common...
Help me point i tre-reye is not contained entin uran * Square lc) Fair Value and...
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point i tre-reye is not contained entin uran * Square lc) Fair Value and Equity Methods Nadal Corporation purchased 9,000 common shares of Beck Inc., on January 1, 2018, for $91,000. During 2018, Beck declared and paid cash dividends to Nadal in the amount of $5,500. Nadal's share of Beck's net income for 2018 was $5,500. At December 31, 2018, the fair value of the 10,000 shares was $98,000. This is Nadal's only investment Required: 1. Assume that...
Swifty, Inc. purchased 30% of Nadal Corporation’s 31,000 outstanding common shares at a cost of $15...
Swifty, Inc. purchased 30% of Nadal Corporation’s 31,000 outstanding common shares at a cost of $15 per share on January 3, 2017. The purchase price of $15 per share was based solely on the book value of Nadal’s net assets. On September 21, Nadal declared and paid a cash dividend of $40,600. On December 31, Swifty’s year end, Nadal reported net income of $88,000 for the year. Nadal shares had a fair value of $14.75 per share at December 31....
Recording Entries for Equity Investment: Equity Method On January 1, 2020, Allen Corporation purchased 30% of...
Recording Entries for Equity Investment: Equity Method On January 1, 2020, Allen Corporation purchased 30% of the 24,000 outstanding common shares of Towne Corporation at $15 per share as a long-term investment. On the date of purchase, the book value and the fair value of the net assets of Towne Corporation were equal. During the year, Towne Corporation reported net income of $19,200. Towne Corporation declared and paid cash dividends of $6,400 on December 30, 2020, to shareholders on record....
1. Cullumber Corporation purchased 400 shares of Sherman Inc. common stock for $14,100 (Cullumber does not...
1. Cullumber Corporation purchased 400 shares of Sherman Inc. common stock for $14,100 (Cullumber does not have significant influence). During the year, Sherman paid a cash dividend of $3.25 per share. Assume the stock is nonmarketable. Prepare Cullumber’s journal entries to record (a) the purchase of the investment, (b) the dividends received, and (c) the fair value adjustment. (Assume a zero balance in the Fair Value Adjustment account.) 2. On January 1, 2017, Metlock Corporation purchased 40% of the common...
Ch 17 in-Class Practice Problem First Name: Last Name: Equity Investments --Fair value and equity methods...
Ch 17 in-Class Practice Problem First Name: Last Name: Equity Investments --Fair value and equity methods Fil in the dollar changes caused in the investment account and Dividend Revenue or Investment Revenue account by each of the following transactions, assuming Crane Company uses (a) the fair value method and (b) the equity method for accounting for its investments in Hudson Company (a) Fair Value Method Investment Dividend Account Revenue (b) Equity Method Investment Investment Account Revenue Transaction 1. At the...
P17.8 (LO 2, 3) (Fair Value and Equity Methods) Brooks Corp. is a medium-sized corporation spe-...
P17.8 (LO 2, 3) (Fair Value and Equity Methods) Brooks Corp. is a medium-sized corporation spe- cializing in quarrying stone for building construction. The company has long dominated the market, at one time achieving a 70% market penetration. During prosperous years, the company's profits, coupled with a conservative dividend policy, resulted in funds available for outside investment. Over the years, Brooks has had a policy of investing idle cash in equity securities. In particular, Brooks has made periodic investments in...
er 15 Investments and Fair Value Accounting PR 15-3B Stock investment transactions, equity method and available-for-sale...
er 15 Investments and Fair Value Accounting PR 15-3B Stock investment transactions, equity method and available-for-sale 03.3.4 securities Glacier Products Inc. is a wholesaler of rock climbing gear. The company began operations on January 1, 2016. The following transactions relate to securities acquired by Glacier Products Inc., which has a fiscal year ending on December 31: 2016 Jan. 18. Purchased 9,000 shares of Malmo Inc. as an available for sale investment at $40 per share, including the brokerage commission. July...
On January 1, 2020, Allen Corporation purchased 30% of the 15,000 outstanding common shares of Towne...
On January 1, 2020, Allen Corporation purchased 30% of the 15,000 outstanding common shares of Towne Corporation at $15 per share as a long-term investment. On the date of purchase, the book value and the fair value of the net assets of Towne Corporation were equal. During the year, Towne Corporation reported net income of $12,000. Towne Corporation declared and paid cash dividends of $4,000 on December 30, 2020, to shareholders on record. As of December 31, 2020, common shares...
On January 1, 2020, Crane Corporation purchased 20% of the common shares of Cheyenne Company for...
On January 1, 2020, Crane Corporation purchased 20% of the common shares of Cheyenne Company for $159,000. During the year, Cheyenne earned net income of $86,000 and paid dividends of $21,500. Prepare the entries for Crane to record the purchase and any additional entries related to this investment in Cheyenne Company in 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and...
On January 1, 2020, Metlock Corporation purchased 40% of the common shares of Bonita Company for...
On January 1, 2020, Metlock Corporation purchased 40% of the common shares of Bonita Company for $173,000. During the year, Bonita earned net income of $91,000 and paid dividends of $22,750. Prepare the entries for Metlock to record the purchase and any additional entries related to this investment in Bonita Company in 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and...
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point i tre-reye is not contained entin uran * Square lc) Fair Value and Equity Methods Nadal Corporation purchased 9,000 common shares of Beck Inc., on January 1, 2018, for $91,000. During 2018, Beck declared and paid cash dividends to Nadal in the amount of $5,500. Nadal's share of Beck's net income for 2018 was $5,500. At December 31, 2018, the fair value of the 10,000 shares was $98,000. This is Nadal's only investment Required: 1. Assume that...
Recording Entries for Equity Investment: Equity Method On January 1, 2020, Allen Corporation purchased 30% of the 24,000 outstanding common shares of Towne Corporation at $15 per share as a long-term investment. On the date of purchase, the book value and the fair value of the net assets of Towne Corporation were equal. During the year, Towne Corporation reported net income of $19,200. Towne Corporation declared and paid cash dividends of $6,400 on December 30, 2020, to shareholders on record....
Ch 17 in-Class Practice Problem First Name: Last Name: Equity Investments --Fair value and equity methods Fil in the dollar changes caused in the investment account and Dividend Revenue or Investment Revenue account by each of the following transactions, assuming Crane Company uses (a) the fair value method and (b) the equity method for accounting for its investments in Hudson Company (a) Fair Value Method Investment Dividend Account Revenue (b) Equity Method Investment Investment Account Revenue Transaction 1. At the...
P17.8 (LO 2, 3) (Fair Value and Equity Methods) Brooks Corp. is a medium-sized corporation spe- cializing in quarrying stone for building construction. The company has long dominated the market, at one time achieving a 70% market penetration. During prosperous years, the company's profits, coupled with a conservative dividend policy, resulted in funds available for outside investment. Over the years, Brooks has had a policy of investing idle cash in equity securities. In particular, Brooks has made periodic investments in...
er 15 Investments and Fair Value Accounting PR 15-3B Stock investment transactions, equity method and available-for-sale 03.3.4 securities Glacier Products Inc. is a wholesaler of rock climbing gear. The company began operations on January 1, 2016. The following transactions relate to securities acquired by Glacier Products Inc., which has a fiscal year ending on December 31: 2016 Jan. 18. Purchased 9,000 shares of Malmo Inc. as an available for sale investment at $40 per share, including the brokerage commission. July...
On January 1, 2020, Allen Corporation purchased 30% of the 15,000 outstanding common shares of Towne Corporation at $15 per share as a long-term investment. On the date of purchase, the book value and the fair value of the net assets of Towne Corporation were equal. During the year, Towne Corporation reported net income of $12,000. Towne Corporation declared and paid cash dividends of $4,000 on December 30, 2020, to shareholders on record. As of December 31, 2020, common shares...
On January 1, 2020, Crane Corporation purchased 20% of the common shares of Cheyenne Company for $159,000. During the year, Cheyenne earned net income of $86,000 and paid dividends of $21,500. Prepare the entries for Crane to record the purchase and any additional entries related to this investment in Cheyenne Company in 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and...
On January 1, 2020, Metlock Corporation purchased 40% of the common shares of Bonita Company for $173,000. During the year, Bonita earned net income of $91,000 and paid dividends of $22,750. Prepare the entries for Metlock to record the purchase and any additional entries related to this investment in Bonita Company in 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and...
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