Homework Answers
| No | Date | General Journal | Debit | Credit |
| 1 | 1/1/2017 | Investment in bowden inc. | 980000 | |
| Cash | 980000 | |||
| 2 | 15-Sep | Cash | 36000 | |
| Investment in bowden inc. | 36000 | |||
| 90000*40% | ||||
| 3 | 31-Dec | Investment in bowden inc. | 160000 | |
| Income from bowden | 160000 | |||
| 400000*40% | ||||
| 4 | 31-Dec | Amortization expense | 3200 | |
| Investment in bowden inc. | 3200 | |||
| 48000/15 | ||||
| 5 | 1-Jul | Investment in bowden inc. | 69600 | |
| Income from bowden | 69600 | |||
| 348000/2*40% | ||||
| 6 | 1-Jul | Amortization expense | 1600 | |
| Investment in bowden inc. | 1600 | |||
| 3200/2 | ||||
| 7 | 1-Jul | Cash | 338000 | |
| Gain on sale of investment | 45800 | |||
| Investment in bowden inc. | 292200 | |||
| 8 | 15-Sep | Cash | 27000 | |
| Investment in bowden inc. | 27000 | |||
| 9 | 31-Dec | Investment in bowden inc. | 52000 | |
| Income from bowden | 52000 | |||
| 10 | 31-Dec | Amortization expense | 1600 | |
| Investment in bowden inc. | 1600 |
| Investment in bowden inc | 980000 |
| Add: Investment income | 160000 |
| Less: Dividend income | -36000 |
| Less: Amortization Expense | -3200 |
| Investment value | 1100800 |
| Add: Investment income for 1/2 year | 69600 |
| Less: Amortization Expense for 1/2 year | -1600 |
| Investment value | 1168800 |
| Shares held | 90000 |
| Investment value per share | 12.99 |
| Value for 22500 shares | 292200 |
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On January 1, 2017, Fisher Corporation purchased 40 percent (90,000 shares) of the...
On January 1, 2017, Fisher Corporation purchased 40 percent (90,000 shares) of the common stock of...
On January 1, 2017, Fisher Corporation purchased 40 percent (90,000 shares) of the common stock of Bowden, Inc. for $980,000 in cash and began to use the equity method for the investment. The price paid represented a $48,000 payment in excess of the book value of Fisher's share of Bowden's underlying net assets. Fisher was willing to make this extra payment because of a recently developed patent held by Bowden with a 15-year remaining life. All other assets were considered...
On January 1, 2017, Fisher Corporation purchased 40 percent (86,000 shares) of the common stock of...
On January 1, 2017, Fisher Corporation purchased 40 percent (86,000 shares) of the common stock of Bowden, Inc. for $980,000 in cash and began to use the equity method for the investment. The price paid represented a $60,000 payment in excess of the book value of Fisher's share of Bowden's underlying net assets. Fisher was willing to make this extra payment because of a recently developed patent held by Bowden with a 15-year remaining life. All other assets were considered...
On January 1, 2017, Fisher Corporation purchased 40 percent (80,000 shares) of the common stock of...
On January 1, 2017, Fisher Corporation purchased 40 percent (80,000 shares) of the common stock of Bowden, Inc. for $976,000 in cash and began to use the equity method for the investment. The price paid represented a $60,000 payment in excess of the book value of Fisher's share of Bowden's underlying net assets. Fisher was willing to make this extra payment because of a recently developed patent held by Bowden with a 15-year remaining life. All other assets were considered...
On January 1, 2017, Fisher Corporation purchased 40 percent (86,000 shares) of the common stock of...
On January 1, 2017, Fisher Corporation purchased 40 percent (86,000 shares) of the common stock of Bowden, Inc. for $974,000 in cash and began to use the equity method for the investment. The price paid represented a $60,000 payment in excess of the book value of Fisher's share of Bowden's underlying net assets. Fisher was willing to make this extra payment because of a recently developed patent held by Bowden with a 15-year remaining life. All other assets were considered...
On January 1, 2017, Fisher Corporation purchased 40 percent (82,000 shares) of the common stock of...
On January 1, 2017, Fisher Corporation purchased 40 percent (82,000 shares) of the common stock of Bowden, Inc. for $974,000 in cash and began to use the equity method for the investment. The price paid represented a $66,000 payment in excess of the book value of Fisher's share of Bowden's underlying net assets. Fisher was willing to make this extra payment because of a recently developed patent held by Bowden with a 15-year remaining life. All other assets were considered...
On January 1, 2017, Fisher Corporation purchased 40 percent (72,000 shares) of the common stock of...
On January 1, 2017, Fisher Corporation purchased 40 percent (72,000 shares) of the common stock of Bowden, Inc. for $992,000 in cash and began to use the equity method for the investment. The price paid represented a $54,000 payment in excess of the book value of Fisher's share of Bowden's underlying net assets. Fisher was willing to make this extra payment because of a recently developed patent held by Bowden with a 15-year remaining life. All other assets were considered...
-ms Problem 1-31 (LO 1-1, 1-2, 1-3, 1-4, 1-5d) On January 1, 2017, Fisher Corporation purchased...
-ms Problem 1-31 (LO 1-1, 1-2, 1-3, 1-4, 1-5d) On January 1, 2017, Fisher Corporation purchased 40 percent (74.000 shares) of the common stock of Bowden, Inc. for $976,000 in cash and began to use the equity method for the investment. The price paid represented a $60,000 payment in excess of the book value of Fisher's share of Bowden's underlying net assets. Fisher was willing to make this extra payment because of a recently developed patent held by Bowden with...
Record the annual dividend declared and received from Bowden. Record accrue 2017 income based on 40%...
Record the annual dividend
declared and received from Bowden.
Record accrue 2017 income based on 40% ownership of Bowden.
Record amortization of $60,000 excess patent fair value
[indicated in problem] over 15 years.
Record the entry to accrue ½ year income of 40% ownership.
Record ½ year amortization of patent to establish correct book
value for investment as of 7/1/18.
Record 20,000 shares of Bowden Company sold; investment basis
computed below.
Record annual dividend declared and received.
Record ½ year...
On January 1, 2017, Alison, Inc., paid $91,300 for a 40 percent interest in Holister Corporation’s...
On January 1, 2017, Alison, Inc., paid $91,300 for a 40 percent
interest in Holister Corporation’s common stock. This investee had
assets with a book value of $243,500 and liabilities of $87,500. A
patent held by Holister having a $6,000 book value was actually
worth $60,000. This patent had a six-year remaining life. Any
further excess cost associated with this acquisition was attributed
to goodwill. During 2017, Holister earned income of $35,200 and
declared and paid dividends of $12,000. In...
Harper, Inc. acquires 40 percent of the outstanding voting stock of Kinman Company on January 1,...
Harper, Inc. acquires 40 percent of the outstanding voting stock
of Kinman Company on January 1, 2017, for $228,600 in cash. The
book value of Kinman's net assets on that date was $445,000,
although one of the company's buildings, with a $71,000 carrying
amount, was actually worth $112,000. This building had a 10-year
remaining life. Kinman owned a royalty agreement with a 20-year
remaining life that was undervalued by $85,500. Kinman sold
inventory with an original cost of $98,700 to...
On January 1, 2017, Fisher Corporation purchased 40 percent (90,000 shares) of the common stock of Bowden, Inc. for $980,000 in cash and began to use the equity method for the investment. The price paid represented a $48,000 payment in excess of the book value of Fisher's share of Bowden's underlying net assets. Fisher was willing to make this extra payment because of a recently developed patent held by Bowden with a 15-year remaining life. All other assets were considered...
-ms Problem 1-31 (LO 1-1, 1-2, 1-3, 1-4, 1-5d) On January 1, 2017, Fisher Corporation purchased 40 percent (74.000 shares) of the common stock of Bowden, Inc. for $976,000 in cash and began to use the equity method for the investment. The price paid represented a $60,000 payment in excess of the book value of Fisher's share of Bowden's underlying net assets. Fisher was willing to make this extra payment because of a recently developed patent held by Bowden with...
Record the annual dividend
declared and received from Bowden.
Record accrue 2017 income based on 40% ownership of Bowden.
Record amortization of $60,000 excess patent fair value
[indicated in problem] over 15 years.
Record the entry to accrue ½ year income of 40% ownership.
Record ½ year amortization of patent to establish correct book
value for investment as of 7/1/18.
Record 20,000 shares of Bowden Company sold; investment basis
computed below.
Record annual dividend declared and received.
Record ½ year...
On January 1, 2017, Alison, Inc., paid $91,300 for a 40 percent
interest in Holister Corporation’s common stock. This investee had
assets with a book value of $243,500 and liabilities of $87,500. A
patent held by Holister having a $6,000 book value was actually
worth $60,000. This patent had a six-year remaining life. Any
further excess cost associated with this acquisition was attributed
to goodwill. During 2017, Holister earned income of $35,200 and
declared and paid dividends of $12,000. In...
Harper, Inc. acquires 40 percent of the outstanding voting stock
of Kinman Company on January 1, 2017, for $228,600 in cash. The
book value of Kinman's net assets on that date was $445,000,
although one of the company's buildings, with a $71,000 carrying
amount, was actually worth $112,000. This building had a 10-year
remaining life. Kinman owned a royalty agreement with a 20-year
remaining life that was undervalued by $85,500. Kinman sold
inventory with an original cost of $98,700 to...
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