Accounting
On January 1, 2021, Fisher Corporation paid $2,548,000 for 31 percent of the outstanding voting stock of Steel, Inc., and appropriately applied the equity method for its investment. Any excess of cost over Steel’s book value was attributed to goodwill. During 2021, Steel reports $680,000 in net income and a $1,027,000 other comprehensive income loss. Steel also declares and pays $21,000 in dividends.
What amount should Fisher report as its Investment in Steel on its December 31, 2021, balance sheet?
What amount should Fisher report as Equity in Earnings of Steel on its 2021 income statement?
A. Investment is $----
B. Equity in earnings is $ ----
Homework Answers
On January 1, 2018, Fisher Corporation paid $2,877,000 for 35 percent of the outstanding voting stock...
On January 1, 2018, Fisher Corporation paid $2,877,000 for 35 percent of the outstanding voting stock of Steel, Inc., and appropriately applies the equity method for its investment. Any excess of cost over Steel's book value was attributed to goodwill. During 2018, Steel reports $808,000 in net income and a $997,000 other comprehensive income loss. Steel also declares and pays $21,000 in dividends. What amount should Fisher report as its Investment in Steel on its December 31, 2018, balance sheet?...
On January 1, 2018, Fisher Corporation paid $2,559,000 for 31 percent of the outstanding voting stock...
On January 1, 2018, Fisher Corporation paid $2,559,000 for 31 percent of the outstanding voting stock of Steel, Inc,,and appropriately applies the equity method for its investment. Any excess of cost over Steel's book value was attributed to goodwill. During 2018, Steel reports $775,000 in net income and a $1,020,000 other comprehensive income loss. Steel also declares and pays $23,000 in dividends a. What amount should Fisher report as its Investment in Steel on its December 31, 2018, balance sheet?...
On January 1, 2018, Fisher Corporation paid $2,590,000 for 30 percent of the outstanding voting stock...
On January 1, 2018, Fisher Corporation paid $2,590,000 for 30 percent of the outstanding voting stock of Steel, Inc., and appropriately applies the equity method for its investment. Any excess of cost over Steel's book value was attributed to goodwill. During 2018, Steel reports $756,000 in net income and a $1,070,000 other comprehensive income loss. Steel also declares and pays $22,000 in dividends. a. What amount should Fisher report as its Investment in Steel on its December 31, 2018, balance...
Case IV: Franklin Corporation owns 15% of the voting stock of Grantham Company and has been...
Case IV: Franklin Corporation owns 15% of the voting stock of Grantham Company and has been reporting it as an equity investment with no significant influence. At the beginning of the current year, the investment has a fair value of $50,000,000 Franklin originally purchased its 15% interest for $35,000,000. Franklin purchases an additional 10% interest in Grantham's voting stock for $40,000,000 and determines that the equity method is now appropriate. Any basis difference is attributed to goodwill. Grantham reports net...
Potash Corporation acquired the voting stock of Safestyle Company on January 1, 2019 for $50 million....
Potash Corporation acquired the voting stock of Safestyle Company on January 1, 2019 for $50 million. Safestyle's book value at the time was $10 million, consisting of $2 million of capital stock and $8 million of retained earnings. The $40 million difference between fair and book value was attributed to goodwill. It is now December 31, 2020, the end of the accounting year and two years after the acquisition. Safestyle's January 1, 2020 retained earnings balance is $11 million, and...
10 Piato acquirea the voting stock of Safestyle Company on January 1, 2019 for $50 million....
10 Piato acquirea the voting stock of Safestyle Company on January 1, 2019 for $50 million. Safestyle's book value at the time was $10 million, consisting of $2 million of capital stock and $8 million of retained earnings. The $40 million difference between fair and book value was attributed to goodwill. It is now December 31, 2020, the end of the accounting year and two years after the acquisition. Safestyle's January 1, 2020 retained earnings balance is $11 million. Safestyle...
Total of 7 questions. See attached photos of questions. Case I: Grant Company acquired 40% of...
Total of 7 questions. See attached photos of questions.
Case I: Grant Company acquired 40% of the voting stock of Jake Corporation on January 1, 2016, for $50,000,000. Basis differences were attributed entirely to goodwill. During the 5- year period from January 1, 2016 through December 31, 2020, Jake reported total net income of $23,000,000 and paid $8,000,000 in dividends. During 2021, Jake reported net income of $3,000,000 and paid $800,000 in dividends. Required: a. Calculate the balance in Investment...
Potash Corporation acquired the voting stock of Safestyle Company on January 1, 2019 for $50 million....
Potash Corporation acquired the voting stock of Safestyle Company on January 1, 2019 for $50 million. Safestyle’s book value at the time was $10 million, consisting of $2 million of capital stock and $8 million of retained earnings. The $40 million difference between fair and book value was attributed to goodwill. It is now December 31, 2020, the end of the accounting year and two years after the acquisition. Safestyle’s January 1, 2020 retained earnings balance is $11 million. Safestyle...
Larkland Company acquired 30% of the voting stock of Martin Corporation on January 2, 2017 for...
Larkland Company acquired 30% of the voting stock of Martin Corporation on January 2, 2017 for $50 million. The basis difference was attributed to goodwill. During 2017, Martin Corporation reported net income of $5,000,000, other comprehensive income of $150,000, and declared and paid cash dividends of $2,000,000. Larkland uses the equity method to report its investment in Martin. Prepare Larkland’s 2017 journal entries related to its investment in Martin.
A parent acquires the voting stock of a subsidiary on January 1, 2019. Required revaluations of...
A parent acquires the voting stock of a subsidiary on January 1, 2019. Required revaluations of the subsidiary's net assets are: * Previously unreported identifiable intangibles valued at $3 million, with a remaining life of 10 years, straight-line * Goodwill It is now December 31, 2021, three years after the acquisition. The goodwill is unimpaired during this period. The parent reports its investment in the subsidiary using the cost method. The subsidiary reports the following net income, other comprehensive income,...
On January 1, 2018, Fisher Corporation paid $2,559,000 for 31 percent of the outstanding voting stock of Steel, Inc,,and appropriately applies the equity method for its investment. Any excess of cost over Steel's book value was attributed to goodwill. During 2018, Steel reports $775,000 in net income and a $1,020,000 other comprehensive income loss. Steel also declares and pays $23,000 in dividends a. What amount should Fisher report as its Investment in Steel on its December 31, 2018, balance sheet?...
On January 1, 2018, Fisher Corporation paid $2,590,000 for 30 percent of the outstanding voting stock of Steel, Inc., and appropriately applies the equity method for its investment. Any excess of cost over Steel's book value was attributed to goodwill. During 2018, Steel reports $756,000 in net income and a $1,070,000 other comprehensive income loss. Steel also declares and pays $22,000 in dividends. a. What amount should Fisher report as its Investment in Steel on its December 31, 2018, balance...
Case IV: Franklin Corporation owns 15% of the voting stock of Grantham Company and has been reporting it as an equity investment with no significant influence. At the beginning of the current year, the investment has a fair value of $50,000,000 Franklin originally purchased its 15% interest for $35,000,000. Franklin purchases an additional 10% interest in Grantham's voting stock for $40,000,000 and determines that the equity method is now appropriate. Any basis difference is attributed to goodwill. Grantham reports net...
10 Piato acquirea the voting stock of Safestyle Company on January 1, 2019 for $50 million. Safestyle's book value at the time was $10 million, consisting of $2 million of capital stock and $8 million of retained earnings. The $40 million difference between fair and book value was attributed to goodwill. It is now December 31, 2020, the end of the accounting year and two years after the acquisition. Safestyle's January 1, 2020 retained earnings balance is $11 million. Safestyle...
Total of 7 questions. See attached photos of questions.
Case I: Grant Company acquired 40% of the voting stock of Jake Corporation on January 1, 2016, for $50,000,000. Basis differences were attributed entirely to goodwill. During the 5- year period from January 1, 2016 through December 31, 2020, Jake reported total net income of $23,000,000 and paid $8,000,000 in dividends. During 2021, Jake reported net income of $3,000,000 and paid $800,000 in dividends. Required: a. Calculate the balance in Investment...
Most questions answered within 3 hours.
-
A golfer claims that his average golf score at the course he
plays regularly is less...
asked 1 minute from now -
On May 1, First Bank perfected a security interest in Debtor’s
inventory. On June 1, Bob...
asked 40 minutes ago -
A new kind of typhoid shot is being developed by a medical
research team. The old...
asked 2 hours ago -
Write a chemical equation for these reactions. (Use
the lowest possible whole number coefficients.) Include
states-of-matter...
asked 4 hours ago -
For each of the Z-scores below, determine two probabilities
(show four three decimal places): (1) the...
asked 4 hours ago -
Oxidative phosphorylation is achieved through chemiosmotic
coupling, which turns chemical energy into osmotic potential energy
that...
asked 7 hours ago -
Hollywood Shoes would like to maintain their cash account at a
minimum level of $64,000, but...
asked 7 hours ago -
Proteins CtrA-P, DnaA, and GcrA behave similarly to what
molecule in the Eukaryotic Cell Cycle?
asked 7 hours ago -
TRUE OR FALSE
In case of a competitive tender procedure, in the request for
quotation, the...
asked 7 hours ago -
I am a little behind please provide some explanation, will
provide thumbs up.
This question considers...
asked 7 hours ago -
Let say the utility function as U(X,Y) = lnX + Y. Show that the
marginal rate...
asked 7 hours ago -
A current of I=8.0A is flowing in a typical extension cord of
length L=3.00m. The cord...
asked 7 hours ago