Joural Entry ( $ in Million) | |||
Date | Account Tittle | Debit | Credit |
Investment in Cameron | $240.00 | ||
Cash | $240.00 | ||
Record acquision of Share | |||
Investment in Camerone (20% X120 Million) | $24.00 | ||
Investment Revenue | $24.00 | ||
Allocation of Net Income | |||
Cash (30 Million X 20%) | $6.00 | ||
Investment in Cameron | $6.00 | ||
Record Dividend Received | |||
Investment Revenue | $2.00 | ||
Investment in Cameron | $2.00 | ||
Record Depreciation Adjustment |
Working Sheet ( $ in Million) | |||||||
Investee Net Asset |
X | Ownership Interest | = | Net Asset Purchased | Diifference | Attributed | |
Purchase Price | $240.00 | ||||||
Fair Value C's Asset | $600.00 | X | 20% | = | $120.00 | $120.00 | Goodwill |
Book Value C's Asset | $500.00 | X | 20% | = | $100.00 | $20.00 | Undervaluation of Asset |
Depreciation Adjustment | Years | Adjustment | |||||
Investment Revenue | $20.00 | / | 10 | $2.00 |
2(a) Investment in C's 2018 Balance sheet ( In Million) | |
Investment in Lake Cons Sshare | $240.00 |
Share of Income | $24.00 |
Less; Dividend | -$6.00 |
Less; Dep Adjustment | -$2.00 |
Balance | $256.00 |
2(b) Investment Revenue in the income statement I in Million) | |
Share of Income | $24.00 |
Less; Dep Adjustment | -$2.00 |
Net Income be shown | $22.00 |
2(c) Investment in the Cash FLow statement ( in Million) | |
Cash Dividend Received | $6.00 |
On January 1, 2021, Cameron Inc. bought 20% of the outstanding common stock of Lake Construction...
On January 1, 2021, Cameron Inc. bought 20% of the outstanding common stock of Lake Construction Company for $260 million cash, giving Cameron the ability to exercise significant influence over Lake’s operations. At the date of acquisition of the stock, Lake's net assets had a fair value of $900 million. Its book value was $850 million. The difference was attributable to the fair value of Lake's buildings and its land exceeding book value, each accounting for one-half of the difference....
On January 1, 2021, Cameron Inc. bought 20% of the outstanding common stock of Lake Construction Company for $240 million cash, giving Cameron the ability to exercise significant influence over Lake’s operations. At the date of acquisition of the stock, Lake's net assets had a fair value of $600 million. Its book value was $500 million. The difference was attributable to the fair value of Lake's buildings and its land exceeding book value, each accounting for one-half of the difference....
On January 1, 2021, Cameron Inc. bought 20% of the outstanding common stock of Lake Construction Company for $240 million cash, giving Cameron the ability to exercise significant influence over Lake's operations. At the date of acquisition of the stock, Lake's net assets had a fair value of $600 million. Its book value was $500 million. The difference was attributable to the fair value of Lake's buildings and its land exceeding book value, each accounting for one-half of the difference....
On January 1, 2018, Cameron Inc. bought 30% of the outstanding common stock of Lake Construction Company for $420 million cash. At the date of acquisition of the stock, Lake's net assets had a fair value of $800 million. Their book value was $700 million. The difference was attributable to the fair value of Lake's buildings and its land exceeding book value, each accounting for one-half of the difference. Lake's net income for the year ended December 31, 2018, was...
On January 1, 2021, Cameron Inc. bought 10% of the outstanding common stock of Lake Construction Company for $160 million cash, giving Cameron the ability to exercise significant influence over Lake's operations. At the date of acquisition of the stock, Lake's net assets had a fair value of $900 million. Its book value was $800 million. The difference was attributable to the fair value of Lake's buildings and its land exceeding book value, each accounting for one-half of the difference....
On January 1, 2018. Cameron Inc. bought 10% of the outstanding common stock of Lake Construction Company for $190 million cash At the date of acquisition of the stock, Lake's net assets had a fair value of $900 million. Their book value was 5800 million. The difference was attributable to the fair value of Lake's buildings and its land exceeding book value, each accounting for one-half of the difference. Lake's net income for the year ended December 31, 2018, was...
On January 1, 2018, Cameron Inc. bought 10 % of the outstanding common stock of Lake Construction Company for $190 million cash. At the date of acquisition of the stock, Lake's net assets had a fair value of $900 million. Their book value was $800 million, The difference was attributable to the fair value of Lake's buildings and its land exceeding book value, each accounting for one-half of the difference. Lake's net income for the year ended December 31, 2018,...
5 On January 1, 2018, Cameron Inc bought 30% of the outstanding common stock of Lake Construction Company for $420 million cash. At the date of acquisition of the stock, Lake's net assets had a fair value of $800 million. Thelr book value was $700 million. The difference was attributable to the falr value of Lake's butlidings and its land exceeding book value, each accounting for one half of the difference Lake's net Income for the year ended December 31,...
Need help with Part 2. On January 1, 2018, Cameron Inc. bought 20% of the outstanding common stock of Lake Construction Company for $380 million cash. At the date of acquisition of the stock, Lake's net assets had a fair value of $900 million. Their book value was $800 million. The difference was attributable to the fair value of Lake's buildings and its land exceeding book value, each accounting for one-half of the difference. Lake’s net income for the year...
Exercise 12-23 (Algo) Equity method [L012-6, 12-7] On January 1, 2021, Cameron Inc. bought 20% of the outstanding common stock of Lake Construction Company for $360 million cash, giving Cameron the ability to exercise significant influence over Lake's operations. At the date of acquisition of the stock, Lake's net assets had a fair value of $800 million. Its book value was $700 million. The difference was attributable to the fair value of Lake's buildings and its land exceeding book value,...