RBO Company purchased 25% of the voting common stock of YJD Company on January 1 and paid $800,000 for the investment. Y...
RBO Company purchased 25% of the voting common stock of YJD Company on January 1 and paid $800,000 for the investment. YJD Company reported $50,000 of earnings for the year and paid $10,000 in cash dividends. Calculate investment income and the balance sheet investment account balance for RBO Company using the following method:
Equity method.
Question 25 options:
|
812,500 |
|
|
800,000 |
|
|
810,000 |
|
|
none of the above |
Homework Answers
|
Balance in investment account = 800,000 + share in earnings - share in dividends = 800,000 + (50,000*25%) - (10,000*25%) = 810,000 |
|
Add Answer to:
RBO Company purchased 25% of the voting common stock of YJD Company on January 1 and paid $800,000 for the investment. Y...
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, 2010, X Inc. purchased 25% of the voting shares of Y Inc. for...
On January 1, 2010, X Inc. purchased 25% of the voting shares of Y Inc. for $100,00 investment is reported using the equity method, as a na It is reported using the equity method, as X has significant influence over Y. Y's net income and declared dividends for the following three years are as follows: 2010 2011 2012 Net Income $50,000 $70,000 $30,000 Dividends $20.000 $80.000 $60,000 What would be the carrying value of X's Investment in Y at the...
On January 2, 2018 Pod Company purchased 25% of the outstanding common stock of Jobs, Inc....
On January 2, 2018 Pod Company purchased 25% of the outstanding common stock of Jobs, Inc. and subsequently used the equity method to account for the investment. During 2018 Jobs, Inc. reported net income of $1,260,000 and distributed dividends of $540,000. The ending balance in the Investment in Pod Company account at December 31, 2018 was $960,000 after applying the equity method during 2018. What was the purchase price Pod Company paid for its investment in Jobs, Inc? Select one:...
22) On January 1, 2014, Benson Corporation paid $800,000 to purchase 40% of the outstanding stock...
22) On January 1, 2014, Benson Corporation paid $800,000 to purchase 40% of the outstanding stock of Kroger Company. Kroger Company reported net income of $200,000 for the year ending December 31, 2014 and paid cash dividends of $60,000 during 2014. On January 1, 2015, Benson Corporation sells its entire investment in Kroger Company for $1,100,000. Benson Corporation will report a(n): A) realized gain on the sale of $300,000. B) unrealized gain on the sale of $300,000. C) realized gain...
22) On January 1, 2014, Benson Corporation paid $800,000 to purchase 40% of the outstanding stock...
22) On January 1, 2014, Benson Corporation paid $800,000 to purchase 40% of the outstanding stock of Kroger Company. Kroger Company reported net income of $200,000 for the year ending December 31, 2014 and paid cash dividends of $60,000 during 2014. On January 1, 2015, Benson Corporation sells its entire investment in Kroger Company for $1,100,000. Benson Corporation will report a(n): A) realized gain on the sale of $300,000. B) unrealized gain on the sale of $300,000. C) realized gain...
if 25% of the common stock of an investee company is purchased as a long-term investment, the appropriate method of...
if 25% of the common stock of an investee company is purchased as a long-term investment, the appropriate method of accounting for the investment is a. the cost method. b. the equity method. C. the preparation of consolidated financial statements. d. determined by agreement with whomever owns the remaining 90% of the stock. On January 1, 2020, Jamestina Corp. paid $1,800,000 for 100,000 shares of Belinda Company's common stock, which represents 25% of Belinda's outstanding common stock. Belinda reported net...
On January 1, Belleville Company paid $2,760,000to acquire 69,000 shares of O'Fallon's voting common stock, which...
On January 1, Belleville Company paid $2,760,000to acquire 69,000 shares of O'Fallon's voting common stock, which represents a 40% investment. No allocations to goodwill or other specific accounts were made. Significant influence over O'Fallon is achieved by this acquisition, and so Bellville applies the equity method. O'Fallon declared a $1 per share dividend during the year and reported net income of $596,000. What is the balance in the investment in O'Fallon account found in Bellvile's financial records as of December...
Azure Enterprises acquired 80 percent of Brown Corporation's voting common stock on January 1, 20X3, for...
Azure Enterprises acquired 80 percent of Brown Corporation's voting common stock on January 1, 20X3, for $392,000. At that date, the fair value of the noncontrolling interest of Brown Corporation was $98,000. Immediately after Azure acquired its ownership, Brown purchased 60 percent of Coral Company's stock for $129,000. The fair value of the noncontrolling interest of Coral Company was $86,000 at that date. During 20X3, Azure reported operating income of $250,000 and paid dividends of $95,000. Brown reported operating income...
Question 15 2 pts On January 1, 2016. Nolan, Inc. purchased 30% of the voting common...
Question 15 2 pts On January 1, 2016. Nolan, Inc. purchased 30% of the voting common stock of Bentley Corp. for $400,000. There was no amortization. During 2016, Bentley paid dividends of $15.000 and reported a net loss of $60.000 What is the balance in the Equity Investment account on December 31, 2016? $382.000 • $377,500 $325,000 5413,500
On January 1, Puckett Company paid $2.04 million for 68,000 shares of Harrison's voting common stock,...
On January 1, Puckett Company paid $2.04 million for 68,000 shares of Harrison's voting common stock, which represents a 40 percent investment. No allocation to goodwill or other specific account was made. Significant influence over Harrison is achieved by this acquisition and so Puckett applies the equity method. Harrison distributed a dividend of $2 per share during the year and reported net income of $627,000. What is the balance in the Investment in Harrison account found in Puckett's financial records...
On January 1, 2010, X Inc. purchased 25% of the voting shares of Y Inc. for $100,00 investment is reported using the equity method, as a na It is reported using the equity method, as X has significant influence over Y. Y's net income and declared dividends for the following three years are as follows: 2010 2011 2012 Net Income $50,000 $70,000 $30,000 Dividends $20.000 $80.000 $60,000 What would be the carrying value of X's Investment in Y at the...
if 25% of the common stock of an investee company is purchased as a long-term investment, the appropriate method of accounting for the investment is a. the cost method. b. the equity method. C. the preparation of consolidated financial statements. d. determined by agreement with whomever owns the remaining 90% of the stock. On January 1, 2020, Jamestina Corp. paid $1,800,000 for 100,000 shares of Belinda Company's common stock, which represents 25% of Belinda's outstanding common stock. Belinda reported net...
Azure Enterprises acquired 80 percent of Brown Corporation's voting common stock on January 1, 20X3, for $392,000. At that date, the fair value of the noncontrolling interest of Brown Corporation was $98,000. Immediately after Azure acquired its ownership, Brown purchased 60 percent of Coral Company's stock for $129,000. The fair value of the noncontrolling interest of Coral Company was $86,000 at that date. During 20X3, Azure reported operating income of $250,000 and paid dividends of $95,000. Brown reported operating income...
Question 15 2 pts On January 1, 2016. Nolan, Inc. purchased 30% of the voting common stock of Bentley Corp. for $400,000. There was no amortization. During 2016, Bentley paid dividends of $15.000 and reported a net loss of $60.000 What is the balance in the Equity Investment account on December 31, 2016? $382.000 • $377,500 $325,000 5413,500
On January 1, Puckett Company paid $2.04 million for 68,000 shares of Harrison's voting common stock, which represents a 40 percent investment. No allocation to goodwill or other specific account was made. Significant influence over Harrison is achieved by this acquisition and so Puckett applies the equity method. Harrison distributed a dividend of $2 per share during the year and reported net income of $627,000. What is the balance in the Investment in Harrison account found in Puckett's financial records...
Most questions answered within 3 hours.
-
The Little Coffee Company (LC) is considering entering into the
coffee-brewing business, which is dominated by...
asked 4 minutes ago -
A glowing blackbody is at a temperature of 4.325×103 K. For this
temperature the peak in...
asked 3 minutes ago -
Need help making this Java program:
package assignment1;
public class Fibonacci {
// Exercise 1: Fibonacci...
asked 46 minutes ago -
5) Suppose a price floor on sparkling wine is proposed by the
Health Minister of the...
asked 12 minutes ago -
how
are monotremes, cyanodonts , and synapsids related ?
asked 21 minutes ago -
Webster Corporation is preparing a master budget for the first
quarter of the year. The company...
asked 30 minutes ago -
Exercise Technology
The relationship of the technology ( Positive Effects ) to
society and the
world....
asked 23 minutes ago -
NEED THE SQL QUERIES ASAP PLEASE(LIKE 1 HOUR) THE ONES WITH ID
ARE PRIMARY KEYS OR...
asked 21 minutes ago -
1. As we are nearing the end of our class, consider how
communication currently plays a...
asked 33 minutes ago -
Classify the countries according to the sign of each countries'
current account balance in 2012.
Current...
asked 33 minutes ago -
risk perception genetically modified foods
(a) What factors seem to be most important in influencing the...
asked 37 minutes ago -
The equilibrium constant for the reaction HNO2 (aq) + H2 O ( ℓ)
↔ NO2¯ (g)...
asked 53 minutes ago