Select one: A. $200,000 B. $140,000 C. $80,000 D. $40,000 Woodie Ltd, a parent company, has a
Fantastic news! We've Found the answer you've been seeking!
Question:
Select one:
A. $200,000
B. $140,000
C. $80,000
D. $40,000
Transcribed Image Text:
Woodie Ltd, a parent company, has a 20% investment (and hence significant influence) in Miles Ltd for 10 years. Woodie s accountant has mislaid the file of equity accounting memoranda and has asked you to reconstruct the information from the following data: • The investment cost is $685 000. • Miles made a $200 000 dividend appropriation in the final quarter of the current year. The dividend was from current year profit. The increase in Miles reserves in the current year is due to an appropriation of profit. There is no need to make fair value adjustments to amounts reported by Miles. There are no intercompany transactions. Equities of Miles, under the cost basis, are at: Paid-up capital General reserve Retained profits Acquisition date S 1 300 000 800 000 Start of current year End of current year S S 1 300 000 1 000 000 600 000 1 300 000 1 300 000 1 000 000 In preparing memoranda journal entries to convert from the cost basis to the equity method of accounting for the current year, how much is the net increase for the account of Revenue from associate? Woodie Ltd, a parent company, has a 20% investment (and hence significant influence) in Miles Ltd for 10 years. Woodie s accountant has mislaid the file of equity accounting memoranda and has asked you to reconstruct the information from the following data: • The investment cost is $685 000. • Miles made a $200 000 dividend appropriation in the final quarter of the current year. The dividend was from current year profit. The increase in Miles reserves in the current year is due to an appropriation of profit. There is no need to make fair value adjustments to amounts reported by Miles. There are no intercompany transactions. Equities of Miles, under the cost basis, are at: Paid-up capital General reserve Retained profits Acquisition date S 1 300 000 800 000 Start of current year End of current year S S 1 300 000 1 000 000 600 000 1 300 000 1 300 000 1 000 000 In preparing memoranda journal entries to convert from the cost basis to the equity method of accounting for the current year, how much is the net increase for the account of Revenue from associate?
Expert Answer:
Related Book For
Posted Date:
Students also viewed these accounting questions
-
C owns 60 shares and D owns 40 shares of Z Corporation, representing all of Zs outstanding shares. C and D are father and son. Z redeems all of Cs stocks. C stays on as Zs president with compensation...
-
A small coil C with N = 200 turns is mounted on one end of a balance beam and introduced between the poles of an electromagnet as shown in Fig. 3.70. The cross-sectional area of the coil is S = 1.0...
-
A company wants to study the satisfaction level of all their customers. They decided to reach out to all of their customers with five survey questions. This is an example of O Descriptive...
-
1) Write a generic function to integrate y(x)dx with the following format function I integrator (x, y, method) where x is a vector and y is a matrix whose columns y(:,j) are vectors of the same...
-
Define the term tropism, and provide at least one example illustrating how viral structure determines this property of a virus.
-
Using the data given in part B, but now assuming that firms L and U are both subject to a 40 percent corporate tax rate, repeat the analysis called for in B(1) and B(2) under the MM with-tax model....
-
Fill in the unknowns in physical or equivalent units: EQUIVALENT UNITS PHYSICAL DIRECT CONVERSION FLOW OF PRODUCTION Beginning work-in-process Started UNITS MATERIALS COSTS 1,000 (50%) ? To account...
-
For each of these five separate cases, identify the principle( s) of internal control that is violated. Recommend what the business should do to ensure adherence to principles of internal control. 1....
-
Carla Vista Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 60 cents per 16-ounce bottle to retailers, who charge customers 75 cents per bottle. For the year 2020,...
-
Donna Jamison was recently hired as a financial analyst by Computron Industries, a manufacturer of electronic components. Her first task was to conduct a financial analysis of the firm covering the...
-
Question A random sample of American toads were measured and the proportion of toads that were over 1 ounce in weight recorded. The measurements resulted in a sample proportion of p' = 0.16, with a...
-
Digging Deeper: Interdependences between Practical components and other components 1. The author suggests that the nine components of the deliberations dimension "should not be thought of as...
-
Compute break - even units using the following formula: Break - Even Units = Total Fixed Costs / ( Unit Selling Price Unit Variable Cost ) suppose that a firm has an existing product with a combined...
-
4. Solve for n if 2(nC) = n+1C3-
-
Novak Company's standard materials cost per unit of output is $10 (2 kg x $5). During July, the company purchases and uses 3,300 kg of materials costing $16,929 in making 1,500 units of finished...
-
Suppose f(x)=2x 3x+5 and g(x) = x+3x-4. (f-9)(x)
-
Silly Industries produced 5,000 tables last month. The standard variable manufacturing overhead (MOH) rate used by the company is $18 per machine hour. Each table requires 0.5 machine hours. Actual...
-
1. Firms may hold financial assets to earn returns. How the firm would classify financial assets? What treatment will such financial assets get in the financial statements in accordance with US GAAP...
-
Write the cell notation for a voltaic cell with the following half-reactions. Al(s) Al3+ (aq) + 3e 2H + (aq) + 2e H2(g)
-
Starting from the ideal gas law, prove that the volume of a mole of gas is inversely proportional to the pressure at constant temperature (Boyles law).
-
Using standard electrode potentials, calculate Eocell at 25oC for the following cell. Zn(s) |Zn2+(aq)||Cu2+(aq) |Cu(s
-
Connect Inc. manufactures four different lines of computer devices: modems, routers, servers, and drives. Each of the product lines is produced in all of the companys three plants: Beckley,...
-
Writing Inc. has two product lines. The September income statements of each product line and the company are as follows: Pens and pencils are sold in two territories, Vermont and Washington, as...
-
The Van Division of Travel Vans Corporation has offered to purchase 180,000 wheels from the Wheel Division for \($76\) per wheel. At a normal volume of 500,000 wheels per year, production costs per...
Study smarter with the SolutionInn App