{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-06-28T08:32:43-04:00", "answer_date": "2024-06-28 08:32:43", "is_docs_available": null, "is_excel_available": null, "is_pdf_available": null, "count_file_available": 0, "main_page": "student_question_view", "question_id": "4275224", "url": "\/study-help\/questions\/im-having-a-lot-of-trouble-with-these-problems-can-4275224", "question_creation_date_js": "2024-06-28T08:32:43-04:00", "question_creation_date": "Jun 28, 2024 08:32 AM", "meta_title": "[Solved] I'm having a lot of trouble with these pr | SolutionInn", "meta_description": "Answer of - I'm having a lot of trouble with these problems, can you help me? Accounting 4022_Fall 2016 HW1 Due: August 29, 2016. | SolutionInn", "meta_keywords": "m,lot,trouble,problems,help,accounting,4022,fall,2016,hw1,due,august", "question_title_h1": "I'm having a lot of trouble with these problems, can you help me? Accounting 4022_Fall 2016 HW1 Due: August 29, 2016. On January 1, 2016,", "question_title": "I'm having a lot of trouble with these problems, can you help", "question_title_for_js_snippet": "I'm having a lot of trouble with these problems, can you help me Accounting 4022 Fall 2016 HW1 Due August 29, 2016 On January 1, 2016, Joey Co acquired 40 of Legoria CO 's voting stock for $15 million cash Legoria's book value on the date of acquisition is $6 million A valuation analysis reveals that Legoria's Patents (10 year life) are undervalued by $1 million and it has unreported Technology (5 year life) valued at $2 million Legoria pays dividends of $250,000 and reports net income of $900,000 in 2016 Required 1) Give the Journal Entries on Joey Co's Books for 2016 related to its Investment in Legoria Co using the Equity Method 2) Does GAAP allow Joey Co to record its 40 investment in Legoria Co using another accounting method a Yes or no b If answer to part a is yes, what is that accounting method 1 Accounting 4022 Fall 2016 HW2 Due August 31, 2016 On January 1, 2016, Joey Co acquired 300,000 shares, which represents 30 of Legoria CO 's voting shares, by paying $40 per share for a total of $12,000,000 Cash Joey Co has significant influence over Legoria Co , and therefore the Equity Method of accounting is appropriate GAAP On the date acquisition, Legoria Co 's net book value is $30 Million An analysis of Legoria's assets and liabilities indicates that plant and equipment (10 year life) is reported at $1 million less than fair value and that Legoria has unreported technology (5 year life) valued at $5 million Legoria Co reports net income of $2 Million for the year ended 12 31 2015 It declares a dividend of $0 50 per share on 11 1 2016 and pays the dividend on 12 1 2016 In addition, during 2016 Legoria Co sells inventory to Joey Co (upstream) at an average markup of 20 percent on cost Joey Co still holds $210,000 of this inventory at year end 2016 Also, during 2016, Joey Co sells inventory to Legoria Co (downstream) at an average markup of 25 percent on cost Legoria Co holds $100,000 of this inventory at year end Required Give the Journal Entries on Joey Co's Books for 2016 related to its Investment in Legoria Co using the Equity Method 1", "question_description": "

I'm having a lot of trouble with these problems, can you help me?<\/p>\"image Accounting 4022_Fall 2016 HW1 Due: August 29, 2016. On January 1, 2016, Joey Co. acquired 40% of Legoria CO.'s voting stock for $15 million cash. Legoria's book value on the date of acquisition is $6 million. A valuation analysis reveals that Legoria's Patents (10-year life) are undervalued by $1 million and it has unreported Technology (5-year life) valued at $2 million. Legoria pays dividends of $250,000 and reports net income of $900,000 in 2016. Required: 1) Give the Journal Entries on Joey Co's Books for 2016 related to its Investment in Legoria Co. using the Equity Method. 2) Does GAAP allow Joey Co. to record its 40% investment in Legoria Co using another accounting method? a. Yes or no. b. If answer to part a is yes, what is that accounting method? 1 Accounting 4022_Fall 2016 HW2 Due: August 31, 2016. On January 1, 2016, Joey Co. acquired 300,000 shares, which represents 30% of Legoria CO.'s voting shares, by paying $40 per share for a total of $12,000,000 Cash. Joey Co. has significant influence over Legoria Co., and therefore the Equity Method of accounting is appropriate GAAP. On the date acquisition, Legoria Co.'s net book value is $30 Million. An analysis of Legoria's assets and liabilities indicates that plant and equipment (10 year life) is reported at $1 million less than fair value and that Legoria has unreported technology (5 year life) valued at $5 million. Legoria Co. reports net income of $2 Million for the year ended 12\/31\/2015. It declares a dividend of $0.50 per share on 11\/1\/2016 and pays the dividend on 12\/1\/2016. In addition, during 2016 Legoria Co. sells inventory to Joey Co. (upstream) at an average markup of 20 percent on cost. Joey Co. still holds $210,000 of this inventory at year-end 2016. Also, during 2016, Joey Co sells inventory to Legoria Co. (downstream) at an average markup of 25 percent on cost. Legoria Co. holds $100,000 of this inventory at year-end. Required: Give the Journal Entries on Joey Co's Books for 2016 related to its Investment in Legoria Co. using the Equity Method. 1", "transcribed_text": "", "related_book": { "title": "Auditing Cases An Active Learning Approach", "isbn": "0130674842, 978-0130674845", "edition": "2nd Edition", "authors": "Mark S. Beasley, Frank A. Buckless, Steven M. Glover, Douglas F. Prawitt", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/64ed8a8041add_6938.jpg", "uri": "\/textbooks\/abnormal-psychology-clinical-perspectives-on-psychological-disorders-1st-edition-9781266566899", "see_more_uri": "" }, "free_related_book": { "isbn": "1943873062", "uri": "\/textbooks\/murachs-sql-server-2022-for-developers-1st-edition-978-1943873067-298837", "name": "Murachs Sql Server 2022 For Developers", "edition": "1st Edition" }, "question_posted": "2024-06-28 08:32:43", "see_more_questions_link": "\/study-help\/questions\/business-corporate-finance-2020-July-01", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/what-marketing-and-production-techniques-can-firms-initiate-to-cope", "description": "What marketing and production techniques can firms initiate to cope with exchange risk?", "stars": 3.5 }, { "url": "\/study-help\/theory-of-probability\/consider-a-network-of-three-stations-with-a-single-server-1982967", "description": "Consider a network of three stations with a single server at each station. 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