Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

ET Mags Manufacturing of Benicia, California acquired a 20 interest in the outstanding stock of Aluminum Alloy Industries on December 31, 2016. The purchase price

image text in transcribed

ET Mags Manufacturing of Benicia, California acquired a 20 interest in the outstanding stock of Aluminum Alloy Industries on December 31, 2016. The purchase price for Aluminum Alloy was $1, 631, 250 and amounted to 181,250 shares. During 2017, Aluminum Alloy Industries paid a dividend on June 30th of $1.50 per share and another dividend of $1.75 per share on December 31, 2017. For the year ended December 31, 2017, Aluminum Alloy reported net income of $4, 250,400. Its stock price on De cember 31, 2017 was 19.90 per share. 3 Required Prepare all journal entries required by ET Mags for the time period starting with December 31, 2016 and through year end December 31, 2017 Under each of the methods used to account for the investment in Aluminum Alloy Industries on the previous page, what would be the amount reported on the Balance Sheet related to the investment at December 31, 2017? In addition, what would be the total income reported on the Income Statement for the year ended| 20172 1 "Cannot" Exercise Sigmificant Control Balance Sheet Income Statement "Can" Exercise Simificant Control Balance Sheet Income Statement

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

Auditing A Business Risk Approach

Authors: Larry E. Rittenberg, Karla Johnstone, Audrey Gramling

7th Edition

0324663722, 978-0324663723

More Books

Students also viewed these Accounting questions