Homework Answers
A.
| Allocation and annual amortization - first purchase | |
| Purchase price of 17% interest | 179400 |
| Net book value ($870,000 * 17%) | 147900 |
| Copyright ($179,400 - $147,900) | 31500 |
| Life of copyright | 14 |
| Annual amortization ($31,500 / 14) | 2250 |
| Allocation and annual amortization - second purchase | |
| Purchase price of 16% interest | 201300 |
| Net book value* ($860,000 * 16%) | 137600 |
| Copyright ($201,300 - $137,600) | 63700 |
| Life of copyright | 13 |
| Annual amortization ($63,700 / 13) | 4900 |
*($870,000 is increased by $90,000 income but decreased by $100,000 in dividend payments)
| Equity income for 2019 | |
| 2019 basic equity income accrual ($90,000 * 17%) | 15300 |
| 2019 amortization on first purchase | -2250 |
| Equity income for 2019 | 13050 |
| Equity income for 2020 | |
| 2020 basic equity income accrual ($160,000 * [16 + 17]%) | 52800 |
| Amortization on first purchase | -2250 |
| Amortization on second purchase | -4900 |
| Equity income for 2020 | 45650 |
B.
| Purchase price on January 1, 2019 | 179400 |
| 2019 equity income (from A) | 13050 |
| 2019 dividends ($100,000 * 17%) | -17000 |
| Purchase price on January 1, 2020 | 201300 |
| 2020 equity income (from A) | 45650 |
| 2020 dividends ($110,000 * [16 + 17]%) | -36300 |
| 2021 basic equity income accrual ($220,000 * [16 + 17]%) | 72600 |
| Amortization on first purchase | -2250 |
| Amortization on second purchase | -4900 |
| 2021 dividends ($110,000 * [16 + 17]%) | -36300 |
| Investment in Barringer on 12/31/21 | 415250 |
| Gain on sale of investment in Barringer | |
| Sales price (given) | 415250 |
| Less: Book value 1/1/22 (above) | -415250 |
| Gain on sale of investment | 0 |
C.
| Deferral of 2020 unrealized gross profit into 2021 | |
| Ending inventory | 18600 |
| Gross profit percentage ([$62,000 - $40,000] / $62,000) | 35.48% |
| Unrealized gross profit ($18,600 * 34.52%) | 6600 |
| Anderson’s ownership | 33% |
| Unrealized intra-entity gross profit | 2178 |
| Deferral of 2021 unrealized gross profit into 2022 | |
| Ending inventory | 48000 |
| Gross profit percentage ([$60,000 - $35,000] / $60,000) | 41.67% |
| Unrealized gross profit ($48,000 * 41.67%) | 20000 |
| Anderson’s ownership | 33% |
| Unrealized intra-entity gross profit | 6600 |
| Equity income for 2021 | |
| 2021 equity income accrual ($220,000 * 33%) | 72600 |
| Amortization on first purchase | -2250 |
| Amortization on second purchase | -4900 |
| Realization of 2020 intra-entity profit | 2178 |
| Deferral of 2021 intra-entity profit | -6600 |
| Equity income for 2021 | 61028 |
Add Answer to:
I LILIUL SHUIU Allan report for 2021? 5. Anderson acquires 17 percent of the outstanding voting...
Anderson acquires 11 percent of the outstanding voting shares of Barringer on January 1, 2019, for...
Anderson acquires 11 percent of the outstanding voting shares of Barringer on January 1, 2019, for $109,000 and categorizes the investment as an available-for-sale security. An additional 20 percent of the stock is purchased on January 1, 2020, for $220,000, which gives Anderson the ability to significantly influence Barringer. Barringer has a book value of $900,000 at January 1, 2019, and records net income of $140,000 for that year. Barringer paid dividends of $60,000 during 2019. The book values of...
Anderson acquires 10 percent of the outstanding voting shares of Barringer on January 1, 2013, for...
Anderson acquires 10 percent of the outstanding voting shares of Barringer on January 1, 2013, for $102,520 and categorizes the investment as an available-for-sale security. An additional 20 percent of the stock is purchased on January 1, 2014, for $235,900, which gives Anderson the ability to significantly influence Barringer. Barringer has a book value of $890,000 at January 1, 2013, and records net income of $196,000 for that year. Barringer declared and paid dividends of $79,000 during 2013. The book...
Anderson acquires 10 percent of the outstanding voting shares of Barringer on January 1, 2013, for...
Anderson acquires 10 percent of the outstanding voting shares of Barringer on January 1, 2013, for $102,520 and categorizes the investment as an available-for-sale security. An additional 20 percent of the stock is purchased on January 1, 2014, for $235,900, which gives Anderson the ability to significantly influence Barringer. Barringer has a book value of $890,000 at January 1, 2013, and records net income of $196,000 for that year. Barringer declared and paid dividends of $79,000 during 2013. The book...
On January 1, 2020, Allan acquires 8 percent of Bellevue’s outstanding common stock for $41,110. Allan...
On January 1, 2020, Allan acquires 8 percent of Bellevue’s outstanding common stock for $41,110. Allan classifies the investment as an available-for-sale security and records any unrealized holding gains or losses directly in owners’ equity. On January 1, 2021, Allan buys an additional 13 percent of Bellevue for $54,560, providing Allan the ability to significantly influence Bellevue’s decisions. During the next two years, the following information is available for Bellevue: Income Dividends Common stock fair value (12/31) 2020 $70,000 $30,000...
2. On January 1, 2020, Allan acquires 9 percent of Bellevue's outstanding common stock for $40,000....
2. On January 1, 2020, Allan acquires 9 percent of Bellevue's outstanding common stock for $40,000. Allan classifies the investment as an available-for-sale security and records any unrealized holding gains or losses directly in owners' equity. On January 1, 2021, Allan buys an additional 13 percent of Bellevue for $54,600, providing Allan the ability to significantly influence Bellevue's decisions. During the next two years, the following information is available for Bellevue: Income Dividends Common stock fair value (12/31) 2020 2021...
Belden acquires 30 percent of the outstanding voting shares of Sheffield on January 1, 2017, for...
Belden acquires 30 percent of the outstanding voting shares of Sheffield on January 1, 2017, for $522,000, which gives Belden the ability to significantly influence Sheffield. Sheffield has a net book value of $1,560,000 at January 1, 2017. Sheffield's asset and liability accounts showed carrying amounts considered equal to fair values except for a copyright whose value accounted for Belden's entire excess cost over its share of Sheffield's book value in its 30 percent purchase. The copyright had a remaining...
Belden, Inc. acquires 30 percent of the outstanding voting shares of Sheffield, Inc. on January 1,...
Belden, Inc. acquires 30 percent of the outstanding voting shares of Sheffield, Inc. on January 1, 2017, for $306,000, which gives Belden the ability to significantly influence Sheffield. Sheffield has a net book value of $824,000 at January 1, 2017. Sheffield's asset E and liability accounts showed carrying amounts considered equal to fair values except for a copyright whose value accounted for Belden's excess cost over book value in its 30 percent purchase. The copyright had a remaining life of...
Belden, Inc. acquires 30 percent of the outstanding voting shares of Sheffield, Inc. on January 1,...
Belden, Inc. acquires 30 percent of the outstanding voting shares of Sheffield, Inc. on January 1, 2017, for $308,000, which gives Belden the ability to significantly influence Sheffield. Sheffield has a net book value of $820,000 at January 1, 2017. Sheffield's asset and liability accounts showed carrying amounts considered equal to fair values except for a copyright whose value accounted for Belden's excess cost over book value in its 30 percent purchase. The copyright had a remaining life of 16...
Belden, Inc. acquires 30 percent of the outstanding voting shares of Sheffield, Inc. on January 1,...
Belden, Inc. acquires 30 percent of the outstanding voting shares of Sheffield, Inc. on January 1, 2017, for $320,000, which gives Belden the ability to significantly influence Sheffield. Sheffield has a net book value of $828,000 at January 1, 2017. Sheffield's asset and liability accounts showed carrying amounts considered equal to fair values except for a copyright whose value accounted for Belden's excess cost over book value in its 30 percent purchase. The copyright had a remaining life of 16...
Belden, Inc. acquires 30 percent of the outstanding voting shares of Sheffield, Inc. on January 1,...
Belden, Inc. acquires 30 percent of the outstanding voting shares of Sheffield, Inc. on January 1, 2017, for $302,000, which gives Belden the ability to significantly influence Sheffield. Sheffield has a net book value of $780,000 at January 1, 2017. Sheffield's asset and liability accounts showed carrying amounts considered equal to fair values except for a copyright whose value accounted for Belden's excess cost over book value in its 30 percent purchase. The copyright had a remaining life of 16...
Anderson acquires 11 percent of the outstanding voting shares of Barringer on January 1, 2019, for $109,000 and categorizes the investment as an available-for-sale security. An additional 20 percent of the stock is purchased on January 1, 2020, for $220,000, which gives Anderson the ability to significantly influence Barringer. Barringer has a book value of $900,000 at January 1, 2019, and records net income of $140,000 for that year. Barringer paid dividends of $60,000 during 2019. The book values of...
Anderson acquires 10 percent of the outstanding voting shares of Barringer on January 1, 2013, for $102,520 and categorizes the investment as an available-for-sale security. An additional 20 percent of the stock is purchased on January 1, 2014, for $235,900, which gives Anderson the ability to significantly influence Barringer. Barringer has a book value of $890,000 at January 1, 2013, and records net income of $196,000 for that year. Barringer declared and paid dividends of $79,000 during 2013. The book...
2. On January 1, 2020, Allan acquires 9 percent of Bellevue's outstanding common stock for $40,000. Allan classifies the investment as an available-for-sale security and records any unrealized holding gains or losses directly in owners' equity. On January 1, 2021, Allan buys an additional 13 percent of Bellevue for $54,600, providing Allan the ability to significantly influence Bellevue's decisions. During the next two years, the following information is available for Bellevue: Income Dividends Common stock fair value (12/31) 2020 2021...
Belden acquires 30 percent of the outstanding voting shares of Sheffield on January 1, 2017, for $522,000, which gives Belden the ability to significantly influence Sheffield. Sheffield has a net book value of $1,560,000 at January 1, 2017. Sheffield's asset and liability accounts showed carrying amounts considered equal to fair values except for a copyright whose value accounted for Belden's entire excess cost over its share of Sheffield's book value in its 30 percent purchase. The copyright had a remaining...
Belden, Inc. acquires 30 percent of the outstanding voting shares of Sheffield, Inc. on January 1, 2017, for $306,000, which gives Belden the ability to significantly influence Sheffield. Sheffield has a net book value of $824,000 at January 1, 2017. Sheffield's asset E and liability accounts showed carrying amounts considered equal to fair values except for a copyright whose value accounted for Belden's excess cost over book value in its 30 percent purchase. The copyright had a remaining life of...
Belden, Inc. acquires 30 percent of the outstanding voting shares of Sheffield, Inc. on January 1, 2017, for $308,000, which gives Belden the ability to significantly influence Sheffield. Sheffield has a net book value of $820,000 at January 1, 2017. Sheffield's asset and liability accounts showed carrying amounts considered equal to fair values except for a copyright whose value accounted for Belden's excess cost over book value in its 30 percent purchase. The copyright had a remaining life of 16...
Belden, Inc. acquires 30 percent of the outstanding voting shares of Sheffield, Inc. on January 1, 2017, for $302,000, which gives Belden the ability to significantly influence Sheffield. Sheffield has a net book value of $780,000 at January 1, 2017. Sheffield's asset and liability accounts showed carrying amounts considered equal to fair values except for a copyright whose value accounted for Belden's excess cost over book value in its 30 percent purchase. The copyright had a remaining life of 16...
Most questions answered within 3 hours.
-
Where is the error in this code sequence?
String s1 = "Hello";
String s2 = "ello";...
asked 11 months ago -
Financial data for Joel de Paris, Inc., for last year
follow:
Joel de Paris, Inc.
Balance...
asked 11 months ago -
Consider this reaction:
Al2(SO4)3 (aq)+ BaCl3
(aq) Al2Cl6 (aq)- +
3BaSO4(s) . What is the...
asked 11 months ago -
Suppose that Savneet is considering increasing her
recent random sample from 20 car rentals to 40...
asked 11 months ago -
Trucks arrive at an unloading terminal at an average rate of 120
per hour.
Trucks arrive...
asked 11 months ago -
Why are methanol and ethanol completely soluble in water while
octanol is not very little soluble....
asked 11 months ago -
A facilities manager at a university reads in a research report
that the mean amount of...
asked 11 months ago -
When the CuSO4 is rehydrated by adding water to the anhydrous
compound, is this an endothermic...
asked 11 months ago -
A ray of sunlight is passing from diamond into crown glass; the
angle of incidence is...
asked 11 months ago -
A block of mass 0.249 kg is placed on top of a light, vertical
spring of...
asked 11 months ago -
how do the kidneys compensate in the presences of acidosis
a) trigger hyperventilate
b) reserve acid...
asked 11 months ago -
Question 501 pts
The rental rate of capital to the firm increases. Which of the
following...
asked 11 months ago