Northwest Paperboard Company, a paper and allied products manufacturer, was seeking to gain a foothold in...
Northwest Paperboard Company, a paper and allied products manufacturer, was seeking to gain a foothold in Canada. Toward that end, the company bought 40% of the outstanding common shares of Vancouver Timber and Milling, Inc., on January 2, 2018, for $590 million. At the date of purchase, the book value of Vancouver's net assets was $870 million. The book values and fair values for all balance sheet items were the same except for inventory and plant facilities. The fair value exceeded book value by $10 million for the inventory and by $15 million for the plant facilities. The estimated useful life of the plant facilities is 15 years. All inventory acquired was sold during 2018. Vancouver reported net income of $210 million for the year ended December 31, 2018. Vancouver paid a cash dividend of $50 million.
Required: 1. Prepare all appropriate journal entries related to the investment during 2018. 2. What amount should Northwest report as its income from its investment in Vancouver for the year ended December 31, 2018? 3. What amount should Northwest report in its balance sheet as its investment in Vancouver? 4. What should Northwest report in its statement of cash flows regarding its investment in Vancouver?
Homework Answers
![Answer- 1) Tournal entries particulars Date 2018 |후590 $590 Investment in vancouver Ak TO cash Being Investment made] Investm](http://img.homeworklib.com/questions/f9d7c110-78dc-11ea-b4a6-e74170cf0b4c.png?x-oss-process=image/resize,w_560)
Add Answer to:
Northwest Paperboard Company, a paper and allied products
manufacturer, was seeking to gain a foothold in...
Northwest Paperboard Company, a paper and allied products manufacturer, was seeking to gain a foothold in...
Northwest Paperboard Company, a paper and allied products manufacturer, was seeking to gain a foothold in Canada. Toward that end, the company bought 40% of the outstanding common shares of Vancouver Timber and Milling, Inc., on January 2, 2018. for $400 million. At the date of purchase, the book value of Vancouver's net assets was $775 million. The book values and fair values for all balance sheet items were the same except for inventory and plant facilities. The fair value...
Northwest Paperboard Company, a paper and allied products manufacturer, was seeking to gain a foothold in...
Northwest Paperboard Company, a paper and allied products manufacturer, was seeking to gain a foothold in Canada. Toward that end, the company bought 40% of the outstanding common shares of Vancouver Timber and Milling, Inc., on January 2, 2021, for $430 million. At the date of purchase, the book value of Vancouver's net assets was $790 million. The book values and fair values for all balance sheet items were the same except for inventory and plant facilities. The fair value...
Northwest Paperboard Company, a paper and allied products manufacturer, was seeking to gain a foothold in...
Northwest Paperboard Company, a paper and allied products manufacturer, was seeking to gain a foothold in Canada. Toward that end, the company bought 40% of the outstanding common shares of Vancouver Timber and Milling, Inc., on January 2, 2021, for $600 million. At the date of purchase, the book value of Vancouver's net assets was $875 million. The book values and fair values for all balance sheet items were the same except for inventory and plant facilities. The fair value...
d Assignment Chapter 12 Northwest Paperboard Company, a paper and allied products manufacturer, was seeking to...
d Assignment Chapter 12 Northwest Paperboard Company, a paper and allied products manufacturer, was seeking to gain a foothold in Canada. Toward that end, the company bought 40% of the outstanding common shares of Vancouver Timber and Milling, Inc., on January 2, 2021, for $540 million At the date of purchase, the book value of Vancouver's net assets was $845 million. The book values and fair values for all balance sheet items were the same except for inventory and plant...
Northwest Paperboard Company, a paper and allied products manufacturer, was seeking to gain a foothold in Canada. Toward that end, the company bought 40% of the outstanding common shares o...
Northwest Paperboard Company, a paper and allied products manufacturer, was seeking to gain a foothold in Canada. Toward that end, the company bought 40% of the outstanding common shares of Vancouver Timber and Milling, Inc., on January 2, 2018, for $530 million. At the date of purchase, the book value of Vancouver's net assets was $840 million. The book values and fair values for all balance sheet items were the same except for inventory and plant facilities. The fair value...
Save & Ext 11 Check my w Northwest Paperboard Company, a paper and allied products manufacturer,...
Save & Ext 11 Check my w Northwest Paperboard Company, a paper and allied products manufacturer, was seeking to gain a foothold in Canada. Toward that end, the company bought 40% of the outstanding common shares of Vancouver Timber and Miling, Inc., on January 2, 2021, for $460 million. At the date of purchase, the book value of Vancouver's net assets was $805 millon. The book values and falir values for all balance sheet items were the same except for...
Woodlands Ltd., a paper and allied products manufacturer in Singapore, was seeking to gain a foothold...
Woodlands Ltd., a paper and allied products manufacturer in Singapore, was seeking to gain a foothold in Indonesia. Toward that end, the company bought 40% of the outstanding ordinary shares of Jakar Timber Ltd. on January 1, 2016, for $400 million. It used equity method to account for the investment in Jakar. At the date of the purchase, the book value of Jakar’s net identifiable assets was $775 million. The fair value of Jakar’s inventory and equipment exceeded the book...
1. record entry related to purchase 2. record entry related to net income 3. record entry...
1. record entry related to purchase
2. record entry related to net income
3. record entry related to dividends
4. record entry related to the inventory adjustment.
5. record entry related to the depreciation adjustment.
thanks in advance!
Seved Help Save & Exit Check Northwest Paperboard Company, a paper and allied products manufacturer, was seeking to gain a foothold in Canada. Toward that end, the company bought 40% of the outstanding common shares of Vancouver Timber and Milling. Inc., on...
On January 4, 2018, Runyan Bakery paid $332 million for 10 million shares of Lavery Labeling...
On January 4, 2018, Runyan Bakery paid $332 million for 10 million shares of Lavery Labeling Company common stock. The investment represents a 30% interest in the net assets of Lavery and gave Runyan the ability to exercise significant influence over Lavery's operations. Runyan chose the fair value option to account for this investment. Runyan received dividends of $4.50 per share on December 15, 2018, and Lavery reported net income of $190 million for the year ended December 31, 2018....
On December 31, 2016, Akron, Inc. purchased 5 Percent of Zip Company's common shares on the...
On December 31, 2016, Akron, Inc. purchased 5 Percent of Zip Company's common shares on the open market in exchange for $16,800. On December 31, 2017, Akron, Inc., acquires an additional 25 percent of Zip Company's outstanding common stock for $96,250. During the next two years, the following information is available for Zip Company: Income Dividends Declared Common Stock Fair Value (12/31) 2016 $322,000 2017 $81,000 $6,300 385,000 2018 92,000 14,700 479,000 At December 31, 2017, Zip reports a net...
Northwest Paperboard Company, a paper and allied products manufacturer, was seeking to gain a foothold in Canada. Toward that end, the company bought 40% of the outstanding common shares of Vancouver Timber and Milling, Inc., on January 2, 2018. for $400 million. At the date of purchase, the book value of Vancouver's net assets was $775 million. The book values and fair values for all balance sheet items were the same except for inventory and plant facilities. The fair value...
Northwest Paperboard Company, a paper and allied products manufacturer, was seeking to gain a foothold in Canada. Toward that end, the company bought 40% of the outstanding common shares of Vancouver Timber and Milling, Inc., on January 2, 2021, for $600 million. At the date of purchase, the book value of Vancouver's net assets was $875 million. The book values and fair values for all balance sheet items were the same except for inventory and plant facilities. The fair value...
d Assignment Chapter 12 Northwest Paperboard Company, a paper and allied products manufacturer, was seeking to gain a foothold in Canada. Toward that end, the company bought 40% of the outstanding common shares of Vancouver Timber and Milling, Inc., on January 2, 2021, for $540 million At the date of purchase, the book value of Vancouver's net assets was $845 million. The book values and fair values for all balance sheet items were the same except for inventory and plant...
Northwest Paperboard Company, a paper and allied products manufacturer, was seeking to gain a foothold in Canada. Toward that end, the company bought 40% of the outstanding common shares of Vancouver Timber and Milling, Inc., on January 2, 2018, for $530 million. At the date of purchase, the book value of Vancouver's net assets was $840 million. The book values and fair values for all balance sheet items were the same except for inventory and plant facilities. The fair value...
Save & Ext 11 Check my w Northwest Paperboard Company, a paper and allied products manufacturer, was seeking to gain a foothold in Canada. Toward that end, the company bought 40% of the outstanding common shares of Vancouver Timber and Miling, Inc., on January 2, 2021, for $460 million. At the date of purchase, the book value of Vancouver's net assets was $805 millon. The book values and falir values for all balance sheet items were the same except for...
1. record entry related to purchase
2. record entry related to net income
3. record entry related to dividends
4. record entry related to the inventory adjustment.
5. record entry related to the depreciation adjustment.
thanks in advance!
Seved Help Save & Exit Check Northwest Paperboard Company, a paper and allied products manufacturer, was seeking to gain a foothold in Canada. Toward that end, the company bought 40% of the outstanding common shares of Vancouver Timber and Milling. Inc., on...
Most questions answered within 3 hours.
-
1-Write an algorithm to get two numbers from the user (as
inputs) and calculate the sum...
asked 1 hour ago -
Define white-collar crime. What is the difference between
offender and offense-based definitions of white-collar crime? What...
asked 1 hour ago -
Consider a reaction which is 1st order with respect to A and 1st
order with respect...
asked 2 hours ago -
c++
The length of the hypotenuse of a right-angled triangle is the
square root of the...
asked 2 hours ago -
When a metal rod is heated, not only its resistance but also its
length and cross‐sectional...
asked 2 hours ago -
write a c++ program that computes the L^1 - Norm of a given
vector (L^1 norm...
asked 2 hours ago -
A manufacturer of banana chips would like to know whether its
bag filling machine works correctly...
asked 2 hours ago -
Complete the chapter case, "Turnover Analysis".
Chapter Case
Turnover Analysis
You recently completed your company’s new...
asked 2 hours ago -
What is the pH of solutions having the following H3O+
concentrations? Identify each as acidic, basic,...
asked 2 hours ago -
How does over-voltage of the diode usually occur?
asked 2 hours ago -
If you step on a dirty nail, your doctor will recommend you
update your Tetanus vaccination....
asked 2 hours ago -
Suppose that decreases in the price of milk lead to decrease s
in the retail prices...
asked 2 hours ago