Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

In Janurary 200, Wilkerson Inc acquired 20% of the outstanding common stock of Bremm Inc, for 700,000.00. This investment gave Wilkerson the ability to exercise

In Janurary 200, Wilkerson Inc acquired 20% of the outstanding common stock of Bremm Inc, for 700,000.00. This investment gave Wilkerson the ability to exercise significent influence over Bremm. Bremm's assets on the date were recorded at 3,900.00 with liabilities of 900,000.00any excess of cost over book value of the investment was attribitued to patent having a remaining life of 10 years. In 2008 Bremm reported net income of 170,000.00in 2009. Bremm repoted a net income of 210,000.00. Dividends of 70,000.00 were paid each of these two years. What is the equity method balance of Wilkerson investment at Bremm, Inc at December 31, 2009

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

Computer Accounting

Authors: Donna Kay

15th Edition

0077826841, 9780077826840

More Books

Students also viewed these Accounting questions

Question

Define product and the three levels of product.

Answered: 1 week ago

Question

Purpose: What do we seek to achieve with our behaviour?

Answered: 1 week ago

Question

An action plan is prepared.

Answered: 1 week ago