Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1 1 stock of $258,000 and retained earnings of $43.000. During the period of January 1, 20X6, through December 31, 20X9, the market value of

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
1 1 stock of $258,000 and retained earnings of $43.000. During the period of January 1, 20X6, through December 31, 20X9, the market value of Rovine's investment in Valley's stock increased by $11.000 each year. The following data were reported by the companies for the years 20X6 through 20X9 10 point Year 20X6 20x7 20x8 Operating Income lavine Corporation 5153,000 99,000 229,000 173,000 Net Income Valley Industries $45,000 65,000 10,000 55,000 Dividend clared Ravine Valley $ 27,000 $35,000 77,000 55,000 97,000 40,000 107.000 35,000 book References Required: a What net income would Ravine Corporation have reported for each of the years, assuming Ravine accounts for the intercorporate investment ether by carrying the investment at fair value or by using the equity method? D.1 Give all appropriate journal entries for 20x8 that Ravine would make if it comes the investment at fair value 52. Gwel appropriate journal entries for 20x8 that Ravine would make if it uses the equity method Complete this question by entering your answers in the tabs below. Required Required Bt Required 02 What niet income would Ravine Corporation have reported for each of the years, assuming Ravine accounts for the unter corporate investment either by carrying the investment at fair value, or by using the equity method? Year 2000 2007 Net Income Fair Value Equity Method 5 100.00 110.600 5 20000 1000 20x0 Required 1> 1 Give all appropriate journal entries for 20x8 that Ravine would make if it carries the investment at fair value. (If no entry is require a transaction/event, select "No journal entry required" in the first account field.) View transaction list 10 points Journal entry worksheet Book Give all appropriate journal entries for 20x8 that Ravine would make if it uses the equity method. (If no er transaction/event, select "No journal entry required" in the first account field.). View transaction list Journal entry worksheet ook ) nces Record the share in net income of Valley Industries under the equity method. Note: Enter debits before credits. Event General Journal Debit Credit Credit 2 Record entry Clear entry View general journal 1 Give all appropriate journal entries for 20x8 that Ravine would make if it carries the investment at fair value. (If no entry is require a transaction/event, select "No journal entry required" in the first account field.) View transaction list 10 points Journal entry worksheet Book Give all appropriate journal entries for 20x8 that Ravine would make if it uses the equity method. (If no er transaction/event, select "No journal entry required" in the first account field.). View transaction list Journal entry worksheet ook ) nces Record the share in net income of Valley Industries under the equity method. Note: Enter debits before credits. Event General Journal Debit Credit Credit 2 Record entry Clear entry View general journal

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Application Of Quantitative Techniques For The Prediction Of Bank Acquisition Targets

Authors: Pasiouras Fotios

1st Edition

9812565183, 9789812565181

More Books

Students also viewed these Accounting questions

Question

What were some of the team roles at Casper?

Answered: 1 week ago

Question

What were some of the team norms at Casper?

Answered: 1 week ago