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I need help with letter D Fox Corporation acquired all of Greenburg Company's outstanding stock on January 1, 2016, for $724,.000 cash. Greenburg's accounting records
I need help with letter D
Fox Corporation acquired all of Greenburg Company's outstanding stock on January 1, 2016, for $724,.000 cash. Greenburg's accounting records showed net assets on that date of $560,000, although equipment with a 10-year life was undervalued on the records by $87500 Any recognized goodwill is considered to have an indefinite life. Greenburg reports net income in 2016 of $108.500 and $121000 in 2017. The subsidiary declared dividends of $20,000 in each df these two years Account balances for the year ending December 31, 2018, follow. Credit balances are indicated by parentheses Fo Greenburg Revenues Cost of goods sold Depreciation expense Investment income 996,000) (804,000) 124,500 366,000 (20/000) 201,000 359,000 Net income $25,500) (244,000) L 236,0005328,000) Retained earning:1/118 Net income Dividends declared (525,500) 120 000 244-000) 20,000 641,5002(552.000 Retained earnin12/31718 000304/000 Current asset Investment in subsidiary Equ ipment (net) Buildings (net) Land 986,000 976, 000 602)000 552, 000 610,0001111421000 $3,687,000.400,000 Total assets Liabilities Common stock Retained earnings 01 145 500 900 000) 1 641) 500 (3 682 00 (300,000) 552,000) S03:400.000) Total liabilities and equity d. Determine parent's investment income for 2018 under partial equity method and equity method e. What would be Foxx's balance for retained earnings as of January 1. 2018, if each of the following methods had been in use? . Initial value method. . Partial equity method . Equity method Complete this question by entering your answers in the tabs below Req A Req B and CReq D andBE d. Determine parent's investment income for 2018 under partial equity method and equity method. e. What would be Foxx's balance for retained earnings as of January 1, 2018, if each of the following methods had been in use? Investment Income Retained Earnings $ 1,236,000 $ 1,425,500 $ 1,408,000 Initial value method Partial equity method- Equity method Req B and C Step by Step Solution
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