Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Aug 06, 2024

Jardon Jewelers purchased 3,000,000 of the outstanding 10,000,000 shares of Angel & Associates. Jardon has significant influence over Angel, so Jardon will account for this

Jardon Jewelers purchased 3,000,000 of the outstanding 10,000,000 shares of Angel & Associates. Jardon has significant influence over Angel, so Jardon will account for this investment using the equity method. Angel declared Net Income of $1,250,000 for the year. How will Angel's Net Income be recorded by Jardon?

A. Cash 375,000

Income from Investment 375,000

B. Investment in Angel & Associates 1,250,000

Income from Investment 1,250,000

C. Investment in Angel & Associates 375,000

Income from Investment 375,000

D. Cash 1,250,000

Investment in Angel & Associates 1,250,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

Step: 3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions

Question

6.45 Same-Sex Marriage in Argentines Same- sex marriage is legal in the Netherlands, Belgium, Spain, Canada, and South Africa, and at least 18 coun- tries offer some form of legal recognition to...

Answered: 1 week ago

Question

★★★★★

Using OLAP Query 1 shown in Figure 9.11 (based on data from Figure 9.7) as a starting point, give an example that illustrates a drill up operation.

Answered: 1 week ago

Question

★★★★★

For some reason, I am unable to calcualte working cpaital at the end. Any suggestions are appreciated. The following financial data were reported by RMM Company for 2021 and 2022 (dollars in...

Answered: 1 week ago

Question

★★★★★

Health Systems Inc. is considering a 15 percent stock dividend. The capital accounts are as follows: Common stock (4,000,000 shares at $10 par) $ 40,000,000 Capital in excess of par* 15,000,000...

Answered: 1 week ago

Question

★★★★★

There are two masses with mass, 2M and M. Which of the following statements is true? Group of answer choices The center of mass is closer to "2m" mass than "m" mass The center of mass is exactly...

Answered: 1 week ago

Question

★★★★★

Laurie needs to set up her operations to produce an order of 2,000 frozen pies for Thanksgiving. Considering the time to setup her process, she will have 10 working days to make the pies. She plans...

Answered: 1 week ago

Question

★★★★★

On January 1, 2022, Paxon Corporation acquired all of the outstanding common stock of Saxon Company for $2 billion cash. The prior to the combination, are shown below: Balance Sheets (in millions)...

Answered: 1 week ago

Question

★★★★★

Question 2 (20 Marks) Weekly sales of copy paper at Cubicle Suppliers are provided in the table below. Compute a three-period moving average and a four-period moving average for weeks 5, 6, and 7....

Answered: 1 week ago

Question

★★★★★

Andrea was an up - and - coming music producer at Too Loud Productions. One night while out at the clubs, Andrea discovered a new singer , Dylan. Andrea approached Dylan after the show and gave him...

Answered: 1 week ago

Previous Question Next Question