On January 2, 2018 Pod Company purchased 25% of the outstanding common stock of Jobs, Inc....
Homework Answers
Purchase Price = 960,000 - (1,260,000 - 540,000) x 25%
=960,000- 180,000
So Purchase Price is = 780,000
Correct Answer is C
Add Answer to:
On
January 2, 2018 Pod Company purchased 25% of the outstanding common
stock of Jobs, Inc....
On January 1, 2021 ABC purchased 30% of the outstanding common stock of XYZ and subsequently...
On January 1, 2021 ABC purchased 30% of the outstanding common stock of XYZ and subsequently used the equity method to account for the investment. During 2021, XYZ reported net income of $1,200,000 and distributed total dividends of $500,000. The ending balance of the investment in XYZ at December 31, 2021 was $1,000,000 after applying the equity method during 2021. What was the initial purchase price ABC paid for its investment in XYZ?
Answers given. Can you explain why, with formulas. 1) On January 2, 2020, Maddison Company purchased...
Answers given. Can you explain why, with formulas. 1) On January 2, 2020, Maddison Company purchased 35% of the outstanding common stock of Ellinger, Inc. and subsequently used the equity method to account for the investment. During 2020 Ellinger, Inc. reported net income of $400,000 and distributed dividends of $100,000. The ending balance in the Investment in Ellinger, Inc. account at December 31, 2020 was $500,000 after applying the equity method during 2020. What was the purchase price Maddison paid...
Sunland Company purchased 100 of the 1000 outstanding shares of Darby Company's common stock for $660000 on January 2, 2...
Sunland Company purchased 100 of the 1000 outstanding shares of
Darby Company's common stock for $660000 on January 2, 2018. During
2018, Darby Company declared dividends of $130000 and reported
earnings for the year of $460000.
If Sunland Company uses the equity method of accounting for its
investment in Darby Company, its Equity Investments (Darby) account
at December 31, 2018 should be
$660000.
$693000.
$706000.
$647000.
On January 1, 2018, Cameron Inc. bought 10 % of the outstanding common stock of Lake...
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,...
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....
On January 1, 2018, Cameron Inc bought 10% of the outstanding common stock of Lake Construction...
On January 1, 2018, Cameron Inc bought 10% of the outstanding common stock of Lake Construction Company for $160 million cash At the date of acquisition of the stock, Lake's net assets had a fair value of $900 million. Their book value Ovas $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, was...
On January 1, 2017, James Company purchased 100 percent of the outstanding voting stock of Nolan,...
On January 1, 2017, James Company purchased 100 percent of the outstanding voting stock of Nolan, Inc., for $1,000,000 in cash and other consideration. At the purchase date, Nolan had common stock of $500,000 and retained earnings of $185,000. James attributed the excess of acquisition-date fair value over Nolan’s book value to a trade name with an estimated 25-year remaining useful life. James uses the equity method to account for its investment in Nolan. During the next two years, Nolan...
On January 1, 2017, Corgan Company acquired 80 percent of the outstanding voting stock of Smashing,...
On January 1, 2017, Corgan Company acquired 80 percent of the outstanding voting stock of Smashing, Inc., for a total of $1,080,000 in cash and other consideration. At the acquisition date, Smashing had common stock of $780,000, retained earnings of $330,000, and a noncontrolling interest fair value of $270,000. Corgan attributed the excess of fair value over Smashing's book value to various covenants with a 20-year remaining life. Corgan uses the equity method to account for its investment in Smashing....
On January 1, 2018 Long Company acquired 80% of the outstanding voting common stock of Fall...
On January 1, 2018 Long Company acquired 80% of the outstanding voting common stock of Fall Company for $8, 064, 000 cash. Long Company uses the equity method. During 2018 Fall reported $1,344,000 of net income and paid $576,000 in dividends. The stockholder’s equity section of December 31, 201, balance sheet for Fall was as follows: Stockholder’s equity Paid in capital: Common stock-$84 par $8,400,000 Retained earnings $1,680,000’ Prepare the general journal entries to record the investment and the effect...
On January 1, 2018, Cameron Inc. bought 30% of the outstanding common stock of Lake Construction...
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...
Sunland Company purchased 100 of the 1000 outstanding shares of
Darby Company's common stock for $660000 on January 2, 2018. During
2018, Darby Company declared dividends of $130000 and reported
earnings for the year of $460000.
If Sunland Company uses the equity method of accounting for its
investment in Darby Company, its Equity Investments (Darby) account
at December 31, 2018 should be
$660000.
$693000.
$706000.
$647000.
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,...
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....
On January 1, 2018, Cameron Inc bought 10% of the outstanding common stock of Lake Construction Company for $160 million cash At the date of acquisition of the stock, Lake's net assets had a fair value of $900 million. Their book value Ovas $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, was...
On January 1, 2017, Corgan Company acquired 80 percent of the outstanding voting stock of Smashing, Inc., for a total of $1,080,000 in cash and other consideration. At the acquisition date, Smashing had common stock of $780,000, retained earnings of $330,000, and a noncontrolling interest fair value of $270,000. Corgan attributed the excess of fair value over Smashing's book value to various covenants with a 20-year remaining life. Corgan uses the equity method to account for its investment in Smashing....
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...
Most questions answered within 3 hours.
-
Let X be a continuous random variable whose PDF is Let X be a
continuous random...
asked 16 minutes ago -
Martinez Company’s relevant range of production is 7,500 units
to 12,500 units. When it produces and...
asked 14 minutes ago -
A football with a mass of 1.2 kg is kicked from ground level to
a height...
asked 20 minutes ago -
Remember: Changes in supply determinants shift supply, and
changes in demand determinants shift demand. We say...
asked 19 minutes ago -
Why is the answer b), for this question? I came up with C) for
my incorrect...
asked 25 minutes ago -
Suppose that you know that in the population of full-time
employees in the United States, the...
asked 47 minutes ago -
This experiment was designed originally to sample various meat and carcass quality
aspects of Ontario pigs...
asked 47 minutes ago -
Dopamine Hydrochloride: draw the structure And Show the
functional groups in different colors and label the...
asked 39 minutes ago -
A rope supports a 10 kg dumbbell hanging from it. What is the
tension in the...
asked 39 minutes ago -
) Raw materials are studied for contamination. Suppose that
the number of particles of contamination per...
asked 1 hour ago -
After running a regression analysis we calculated an F test and
the significance level was 0.15....
asked 57 minutes ago -
----Can someone please help me solve this one using JAVA
----I thank you in advance
Create...
asked 1 hour ago