Joural Entry ( $ in Million) | |||
Date | Account Tittle | Debit | Credit |
Investment in Weir | $380.00 | ||
Cash | $380.00 | ||
Record acquision of Share | |||
Investment in weir (20% X190 Million) | $38.00 | ||
Investment Revenue | $38.00 | ||
Allocation of Net Income | |||
Cash (25 Million X 20%) | $5.00 | ||
Investment in Crane | $5.00 | ||
Record Dividend Received | |||
Investment Revenue (($100 Million*20%) /10 Year) | $2.00 | ||
Investment in Weir | $2.00 | ||
Record Depreciation Adjustment |
Working Sheet ( $ in Million) | |||||||
Investee Net Asset |
X | Ownership Interest | = | Net Asset Purchased | Diifference | Attributed | |
Purchase Price | $380.00 | ||||||
Fair Value C's Asset | $900.00 | X | 20% | = | $180.00 | $200.00 | Goodwill |
Book Value C's Asset | $800.00 | X | 20% | = | $160.00 | $20.00 | Undervaluation of Asset |
Depreciation Adjustment | Years | Adjustment | |||||
Investment Revenue (30/2) | $20.00 | / | 10 | $2.00 |
2(a) Investment in Graceia's 2021- Balance sheet ( In Million) | |
Investment in Weir | $380.00 |
Share of Income | $38.00 |
Less; Dividend | -$5.00 |
Less; Dep Adjustment | -$2.00 |
Balance | $411.00 |
2(b) Investment Revenue in the income statement I in Million) | |
Share of Income | $38.00 |
Less; Dep Adjustment | -$2.00 |
Net Income be shown | $36.00 |
2(c) Investment in the Cash FLow statement ( in Million) | |
Cash Dividend Received | $5.00 |
H owarun Saved Help Sav. On January 1, 2021, Garcia Inc. bought 20% of the outstanding...
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, 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....
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,...
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, 2018, Cameron inc bought 10% of the outstanding common stock of Lake Construction Company for $170 million cash At the date of acquisition of the stock, Lake's net assets nad ฮ fair value of S700 milion. Their book value was S600 million The difference was attributable to the fair value of Lake's buildings and its land exceeding book value. each accounting for one-haif 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,...
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...