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On January 1 , 2 0 2 3 , Stream Company acquired 2 5 percent of the outstanding voting shares of Q - Video, Incorporated,
On January Stream Company acquired percent of the outstanding voting shares of QVideo, Incorporated, for $ QVideo manufactures specialty cables for computer monitors. On that date, Video reported assets and liabilities with book values of $ million and $ respectively. A customer list compiled by Video had an appraised value of $ although it was not recorded on its books. The expected remaining life of the customer list was five years with straightline amortization deemed appropriate. Any remaining excess cost was not identifiable with any particular asset and thus was considered goodwill. QVideo generated net income of $ in and a net loss of $ in In each of these two years, QVideo declared and paid a cash dividend of $ to its stockholders. During QVideo sold inventory that had an original cost of $ to Stream for $ Of this balance, $ was resold to outsiders during and the remainder was sold during In QVideo sold inventory to Stream for $ This inventory had cost only $ Stream resold $ of the inventory during and the rest during Required: For and then for compute the amount that Stream should report as income from its investment in QVideo in its external financial statements under the equity method. Note: Enter your answers in whole dollars and not in millions. Answer is complete but not entirely correct. tableEquity income,of$Equity loss,,, 
On January Stream Company acquired percent of the outstanding voting shares of QVideo, Incorporated, for $ QVideo manufactures specialty cables for computer monitors. On that date, Video reported assets and liabilities with book values of $ million and $ respectively. A customer list compiled by Video had an appraised value of $ although it was not recorded on its books. The expected remaining life of the customer list was five years with straightline amortization deemed appropriate. Any remaining excess cost was not identifiable with any particular asset and thus was considered goodwill.
QVideo generated net income of $ in and a net loss of $ in In each of these two years, QVideo declared and paid a cash dividend of $ to its stockholders.
During QVideo sold inventory that had an original cost of $ to Stream for $ Of this balance, $ was resold to outsiders during and the remainder was sold during In QVideo sold inventory to Stream for $ This inventory had cost only $ Stream resold $ of the inventory during and the rest during
Required:
For and then for compute the amount that Stream should report as income from its investment in QVideo in its external financial statements under the equity method.
Note: Enter your answers in whole dollars and not in millions.
Answer is complete but not entirely correct.
tableEquity income,of$Equity loss,,,
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Essentials Of Federal Taxation 2018
Authors: Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver
9th Edition
9781260007640
