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The fair value of Wallis, Inc.'s depreciable assets exceeds their book value by $100 million. The...
The fair value of Cameron Inc.'s depreciable assets exceeds their book value by $50 million
The fair value of Cameron Inc.'s depreciable assets exceeds their book value by $50 million. The assets have an average remaining useful le of 15 years and are being depreciated by the straight-line method. Lake Industries buys 30% of Cameron's common shares. How will the situation described affect Lakes investment revenue? It will not make a difference Lake will reduce the investment revenue by $3.3 million per year, Lake will increase the investment revenue by $1 milion per year. Lake will reduce the investment...
assets of Lavery rather than a 30% interest. P 12-11 Fair value option; equity method investments...
assets of Lavery rather than a 30% interest. P 12-11 Fair value option; equity method investments LO12-5 2, LO12-8 L [This problem is a variation of P 12-102 focusing on the fair value option.] On January 4, 2018, Runyan Bakery paid $324 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...
Pirate Corporation purchased 100 percent ownership of Ship Company on January 1, 20X5, for $277,000. On that date, the book value of Ship’s reported net assets was $209,000. The excess over book value paid is attributable to depreciable assets with a rema
Pirate Corporation purchased 100 percent ownership of Ship Company on January 1, 20X5, for $277,000. On that date, the book value of Ship’s reported net assets was $209,000. The excess over book value paid is attributable to depreciable assets with a remaining useful life of 5 years. Net income and dividend payments of Ship in the following periods were as shown below: YearNet IncomeDividends20X5$37,000$18,00020X657,00028,00020X737,00048,000Required:Prepare journal entries on Pirate Corporation’s books relating to its investment in Ship Company for each of the...
P 12–11 Fair value option; equity method investments 1012–5, 1012–8 [This problem is a variation of...
P 12–11 Fair value option; equity method investments 1012–5, 1012–8 [This problem is a variation of G P 12-10 focusing on the fair value option.] On January 4, 2021, Runyan Bakery paid $324 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...
Fizer Pharmaceutical paid $78 million on January 2, 2021, for 6 million shares of Carne Cosmetics...
Fizer Pharmaceutical paid $78
million on January 2, 2021, for 6 million shares of Carne Cosmetics
common stock. The investment represents a 25% interest in the net
assets of Carne and gave Fizer the ability to exercise significant
influence over Carne’s operations. Fizer received dividends of $2
per share on December 21, 2021, and Carne reported net income of
$28 million for the year ended December 31, 2021. The fair value of
Carne’s common stock at December 31, 2021, was...
Matrix, Inc. acquired 25% of Neo Enterprises for $2,000,000 on January 1, 2014. The fair value...
Matrix, Inc. acquired 25% of Neo Enterprises for $2,000,000 on January 1, 2014. The fair value and book value of 25% of Neo's identifiable net assets was $2,000,000 and $1,600,000 on that date, and the difference was attributable to assets that would be depreciated over 10 years. During 2014 Neo recognized net income of $500,000 and paid dividends of $400,000. Matrix’s portion of Neo’s fair value was $2,500,000 as of December 31, 2014. Required: Prepare the journal entries necessary to...
Problem 12-11 (Algo) Fair value option; equity method investments [LO12-5, 12-8] On January 4, 2021, Runyan...
Problem 12-11 (Algo) Fair value option; equity method investments [LO12-5, 12-8] On January 4, 2021, Runyan Bakery paid $338 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 $2.00 per share on December 15, 2021, and Lavery reported net...
At the beginning of 2019, Metatec Inc. acquired Ellison Technology Corporation for $700 million. In addition...
At the beginning of 2019, Metatec Inc. acquired Ellison Technology Corporation for $700 million. In addition to cash, receivables, and inventory, the following assets and their fair values were also acquired: Plant and equipment (depreciable assets) $160 million Patent 50 million Goodwill 110 million The plant and equipment are depreciated over a 10-year useful life on a straight-line basis. There is no estimated residual value. The patent is estimated to have a 5-year useful life, no residual value, and is...
On January 4, 2018, Runyan Bakery paid $330 million for 10 million shares of Lavery Labeling...
On January 4, 2018, Runyan Bakery paid $330 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 $300 per share! on December 15, 2018. and Lavery reported net income of $180 million for the year ended December 31, 2018...
assets of Lavery rather than a 30% interest. P 12-11 Fair value option; equity method investments LO12-5 2, LO12-8 L [This problem is a variation of P 12-102 focusing on the fair value option.] On January 4, 2018, Runyan Bakery paid $324 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...
P 12–11 Fair value option; equity method investments 1012–5, 1012–8 [This problem is a variation of G P 12-10 focusing on the fair value option.] On January 4, 2021, Runyan Bakery paid $324 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...
Fizer Pharmaceutical paid $78
million on January 2, 2021, for 6 million shares of Carne Cosmetics
common stock. The investment represents a 25% interest in the net
assets of Carne and gave Fizer the ability to exercise significant
influence over Carne’s operations. Fizer received dividends of $2
per share on December 21, 2021, and Carne reported net income of
$28 million for the year ended December 31, 2021. The fair value of
Carne’s common stock at December 31, 2021, was...
Problem 12-11 (Algo) Fair value option; equity method investments [LO12-5, 12-8] On January 4, 2021, Runyan Bakery paid $338 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 $2.00 per share on December 15, 2021, and Lavery reported net...
At the beginning of 2019, Metatec Inc. acquired Ellison Technology Corporation for $700 million. In addition to cash, receivables, and inventory, the following assets and their fair values were also acquired: Plant and equipment (depreciable assets) $160 million Patent 50 million Goodwill 110 million The plant and equipment are depreciated over a 10-year useful life on a straight-line basis. There is no estimated residual value. The patent is estimated to have a 5-year useful life, no residual value, and is...
On January 4, 2018, Runyan Bakery paid $330 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 $300 per share! on December 15, 2018. and Lavery reported net income of $180 million for the year ended December 31, 2018...
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