= On 1/1/X4, Phillip invested $1,100,000 in Sleeper's ordinary shares (35% owned). Sleeper reported: Assets $3,500,000...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
= On 1/1/X4, Phillip invested $1,100,000 in Sleeper's ordinary shares (35% owned). Sleeper reported: Assets $3,500,000 Liabilities 600,000 The book value of Sleeper's net assets approximated market value except for the following assets: Inventory $20,000 overstated, Equipment (1/1/X2 purchased). $50,000 understated, ---- Trademark $70,000 understated For 20X4, Sleeper earned $90,000, declared cash dividends of $60,000, and paid dividends of $40,000. Sleeper's inventory always take perpetual, FIFO and Equipment useful life 6 years, straight line depreciation and no salvage value. For 20X5, Sleeper earned 100,000. (-) What amounts does Phillip report for 20X4? (Give calculating Process) Investment income Investment in Sleeper at year-end Retained earnings increase (decrease) Goodwill Recognized Cost Equity (=) Calculate and prepare Journal Entries if Philip sold 10% of Sleeper's stocks in $200,000 on April 1,2025 (Equity Method and Assume Sleeper's earning is evenly). = On 1/1/X4, Phillip invested $1,100,000 in Sleeper's ordinary shares (35% owned). Sleeper reported: Assets $3,500,000 Liabilities 600,000 The book value of Sleeper's net assets approximated market value except for the following assets: Inventory $20,000 overstated, Equipment (1/1/X2 purchased). $50,000 understated, ---- Trademark $70,000 understated For 20X4, Sleeper earned $90,000, declared cash dividends of $60,000, and paid dividends of $40,000. Sleeper's inventory always take perpetual, FIFO and Equipment useful life 6 years, straight line depreciation and no salvage value. For 20X5, Sleeper earned 100,000. (-) What amounts does Phillip report for 20X4? (Give calculating Process) Investment income Investment in Sleeper at year-end Retained earnings increase (decrease) Goodwill Recognized Cost Equity (=) Calculate and prepare Journal Entries if Philip sold 10% of Sleeper's stocks in $200,000 on April 1,2025 (Equity Method and Assume Sleeper's earning is evenly).
Expert Answer:
Answer rating: 100% (QA)
Part 1 Amounts Phillip reports for 20X4 Investment Income Phillips share of Sleepers earnings for 20X4 Cost Initial investment cost plus Phillips shar... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0077400163
6th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
Posted Date:
Students also viewed these accounting questions
-
There is no difference in the average income of Black and White males once education is taken into account
-
Annapolis Company purchased a $2,000, 7%, 9-year bond at 99 and held it to maturity. The straight line method of amortization is used for both premiums & discounts. What is the net cash received...
-
how to write code using react and spring boot for the following requirment Users can show a list of books they currently own or are willing to share A bookshelf or comprehensive catalog of books...
-
Analyze the case study, "Frank Smith Plumbing." Analyze the "Frank Smith Plumbing's Financial Statement" spreadsheet. Compare the cost of the truck to the cash flow records Compile your calculations...
-
Caden Healey is a realtor. He organized the business as a corporation on December 16, 2017. The business received $60,000 cash from Healey and issued common stock. Consider the following facts as of...
-
The First Amendment to the Constitution prevents the government from interfering with the free exercise of religion. The liturgical practice of the Religion of Internal Enlightenment involves human...
-
Verify the statement made at the end of Section 3.6 that if Toni Difelice can borrow all she wants at 4% she would borrow S9,800, yielding utility of 2.33. 3.6 The Optimal Investment Decision If a...
-
AMR Corporation (parent company of American Airlines) reported the following for 2009 (in millions). Service cost ........... $333 Interest on P.B.O. ......... 712 Return on plan assets ........ 566...
-
Problem 5-47 Straightforward ABC calculations (LO 5-1,5-2,5-4,5-5) Kitchen King's Toledo plant manufactures three product lines, all multi-burner, ceramic cook tops. The plant's three product models...
-
Alex wants to borrow a sum of $1,000,000 to finance the expansion of their business. They had spoken to two banks - Banks A and B about it. Bank A is offering a variable rate loan package with a...
-
What are the mechanisms underlying the emergence and spread of infectious diseases within ecological communities, and how might ecological factors interact with human activities to influence disease...
-
Christine and Gary are buying a new house and will need to take out a $270,000 mortgage loan. They plan to take out a standard 30-year mortgage loan with an interest rate of 4.5%. Their monthly...
-
(a) (i) Define the Dimensional Consistency in a formula. (ii) The Gravitational force F exerted between two arbitrary masses m, and m, is given by F Gm where 1* is the distance between two centers of...
-
Bluestone Company had three intangible assets at the end of the current year: a. A patent purchased this year from Miller Company on January 1 for a cash cost of $1,600. When purchased, the patent...
-
A certain unsharpened cylindrical pencil is inch in diameter and 10 inches long. What is the pencil's volume?
-
Conflict is a normal part of life. Managing conflict using effective communication is an important skill for solving problems, innovating, and maintaining productive relationshipsparticularly in a...
-
If a process has a six-sigma capability, what is the process capability index? a. 1 b. 2 c. 6 d. 12
-
In 2011, Long Construction Corporation began construction work under a three-year contract. The contract price is $1,600,000. Long uses the percentage-of-completion method for financial reporting...
-
A company issued 5%, 20-year bonds with a face amount of $100 million. The market yield for bonds of similar risk and maturity is 4%. Interest is paid semiannually. At what price did the bonds sell?
-
Pro-tech Software acquired all of the outstanding stock of Reliable Software for $14 million. The book value of Reliable's net assets (assets minus liabilities) was $8.3 million. The fair values of...
-
13. ROLE REVERSAL Draft a multiple-choice question that focuses on an issue of copyright law. 4. Result: Parody (especially about politics!) is a fair use of copyrighted material as long as use of...
-
Question: Edo applied for insurance with Geico. In calculating his premium, Geico looked at his credit history and his financial circumstances. It did not offer him the best possible premium but this...
-
Question: Mantra Films sold "Girls Gone Wild" DVDs on the Internet. When customers ordered one DVD, the company would enroll them automatically in a "continuity program" and send them unordered DVDs...
Study smarter with the SolutionInn App