Homework Answers
Share holding = 31500/105000 = 30%
Calculate carrying value of investment
| Amounts | |
| 20X2 | 190000+58000*30%-43000*30% = 194500 |
| 20X3 | 194500+48000*30% = 208900 |
| 20X4 | 208900+9000*30% = 211600 |
Add Answer to:
Port Company purchased 31,500 of the 105,000 outstanding shares of Sund Company common stock on January...
Port Company purchased 32,700 of the 109,000 outstanding shares of Sund Company common stock on January...
Port Company purchased 32,700 of the 109,000 outstanding shares of Sund Company common stock on January 1, 20X2, for $198.000. The purchase price was equal to the book value of the shares purchased. Sund reported the following: Year 20x2 20x3 20X4 Net Income $ 56,000 46,000 19,000 Dividends $ 41,000 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
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.
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...
3. Fellingham Company purchased 200 of the 1,000 outstanding shares of Bing Company's common stock for...
3. Fellingham Company purchased 200 of the 1,000 outstanding shares of Bing Company's common stock for $60,000 on January 2, x1. During x1, Bing Company declared dividends of $10,000 and reported earnings for the year of $40,000. If Fellingham Company uses the equity method of accounting for its investment in Bing Company, its Investment in Bing Company account at December 31, x1 should be Select one: a. $66,000. b. $58,000. c. $60,000. d. $68,000.
Company T had 32,000 outstanding shares of common stock, par value $10 per share. On January...
Company T had 32,000 outstanding shares of common stock, par value $10 per share. On January 1 of the current year, Company P purchased some of Company T’s shares as a long-term investment at $23 per share. At the end of the current year, Company T reported the following: income, $48,000, and cash dividends declared during the year, $19,500. The fair value of Company T stock at the end of the current year was $20 per share. 2-a. Prepare the...
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...
Port Company purchased 32,700 of the 109,000 outstanding shares of Sund Company common stock on January 1, 20X2, for $198.000. The purchase price was equal to the book value of the shares purchased. Sund reported the following: Year 20x2 20x3 20X4 Net Income $ 56,000 46,000 19,000 Dividends $ 41,000 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...
Most questions answered within 3 hours.
-
find the critical value associated with a right sided hypothesis of
the mean using a sample...
asked 1 hour ago -
Which of the following statements is true with respect to a
simple linear regression model?
a....
asked 2 hours ago -
The energy required to remove an electron from a surface of a
solid element is called...
asked 3 hours ago -
How would you train your employees to avoid risks of using
mobile devices?
asked 3 hours ago -
Assume Kw = 1.01 ✕ 10−14
For pure water, we can calculate [H3O+ ] = [OH...
asked 4 hours ago -
Suppose that on a temperature scale X, water boils at 203.0°X
and freezes at -105.7°X. What...
asked 5 hours ago -
BaS crystallizes in a cubic unit cell with S2- ions on each
corner and each face....
asked 6 hours ago -
A. 0≤P(Oi)≤10≤P(Oi)≤1 for each i
B. P(Oi)≤0P(Oi)≤0
C. P(Oi)=1+P(OCi)P(Oi)=1+P(OiC)
D. P(Oi)≥1P(Oi)≥1
If an experiment consists of...
asked 7 hours ago -
A battery has an emf of 9.20V and an internal resistance of 1.20
ohm. a)What resistance...
asked 7 hours ago -
The area of an elastic circular loop decreases at a constant
rate, dA/dt = −6.60×10−3 m2/s...
asked 8 hours ago -
The denaturation of proteins can be described by the
equilibrium
F⇌U
where F and U represent...
asked 10 hours ago -
Please answer what the maximum and minimum force is, and the
angle on the ion is...
asked 10 hours ago