Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I need the answer as soon as possible Starge Inc. owns 30% of the outstanding voting common stock of Ticker Co. and has the ability

I need the answer as soon as possible image text in transcribed

Starge Inc. owns 30% of the outstanding voting common stock of Ticker Co. and has the ability to significantly influence the investee's operations and decision making. On January 1, 2018, the balance in the Investment in Ticker Co. account was $403,159. Amortization associated with this acquisition is $8,111 per year. During 2018, Ticker earned an income of $108,899 and paid cash dividends of $36,897. Previously in 2017, Ticker had sold inventory costing $28,988 to Starge for $48,956. All but 25% of this merchandise was consumed by Starge during 2017. The remainder was used during the first few weeks of 2018. Additional sales were made to Starge in 2018; inventory costing $33,987 was transferred at a price of $61,258. Of this total, 40% was not consumed until 2019. 1 What amount of equity income would Sinc have recognized in 2018 from its ownership interest in T inc. * (2 Points) 2 Calculate the ending balance in the investment account as of 12/31/2018? * (2 Points) Enter your answer 3 As of 12/31/2018 How Much Equity increase has business earned? * (2 Points) 4 How Much the unrlized profit for 2018?* (2 Points) Enter your

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

Financial Accounting A Global Approach

Authors: Sidney J. Gray, Belverd E. Needles

1st Edition

9780395839867

More Books

Students also viewed these Accounting questions

Question

How do we know how well our business is doing?

Answered: 1 week ago

Question

2.1 Discuss what ethics means and the sources of ethical guidance.

Answered: 1 week ago

Question

8 What personal development is elearning good at providing?

Answered: 1 week ago

Question

7 What are the principles of action learning?

Answered: 1 week ago