On January 1, Hillcrest Co. acquired a 40% interest in Preston, Inc. with the excess of purchase price over book value solely attributable to equipment with a ten-year life and undervaluation by $250,000. During the year of acquisition, Preston reported net income of $500,000.<\/p>
<\/p>
What amount of Equity Income should Hillcrest report on its income statement for the year of acquisition?<\/p>", "transcribed_text": "", "related_book": { "title": "Principles Of Accounting Volume 2 Managerial Accounting", "isbn": "0357364805, 9780357364802", "edition": "1st Edition", "authors": "OpenStax", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/2022\/04\/626124ab6f7b1_547626124ab246f0.jpg", "uri": "\/textbooks\/principles-of-accounting-volume-2-managerial-accounting-1st-edition-9780357364802", "see_more_uri": "" }, "free_related_book": { "isbn": "B0CXTJKCCD", "uri": "\/textbooks\/code-of-federal-regulations-title-17-commodity-and-securities-exchanges-part-240-revised-as-of-april-1-2023-page-1-401-1st-edition-979-8884582798-312341", "name": "Code Of Federal Regulations Title 17 Commodity And Securities Exchanges Part 240 Revised As Of April 1 2023 Page 1 401", "edition": "1st Edition" }, "question_posted": "2024-06-28 09:49:25", "see_more_questions_link": "\/study-help\/questions\/business-management-leadership-2023-June-05", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/james-mayaguez-engaged-in-the-following-activities-in-establishing-his", "description": "James Mayaguez engaged in the following activities in establishing his photography studio, Picture This!: 1. Opened a bank account in the name of Picture This! and deposited $8,000 of his own money...", "stars": 3 }, { "url": "\/study-help\/coaching-supervision-a-practical-guide-for-supervisees\/describe-several-successful-positive-work-interventions-1980256", "description": "describe several successful positive work interventions.", "stars": 3 }, { "url": "\/study-help\/questions\/assuming-the-data-are-normal-what-is-the-probability-the-41748", "description": "Assuming the data are normal, what is the probability the blade weights from this process will exceed 5.20? What is the probability that weights will be less than 4.80? What is the actual percent of...", "stars": 3 }, { "url": "\/study-help\/questions\/question-help-thorpe-corporation-purchases-a-new-delivery-truck-and-9896019", "description": "Question Help Thorpe Corporation purchases a new delivery truck and signs a note payable at the truck dealership for the total cost. The impact of this transaction on Thorpe Corporation O A....", "stars": 3 }, { "url": "\/study-help\/questions\/m-cotteleer-electronics-supplies-microcomputer-circuitry-to-a-company-8166360", "description": "M . Cotteleer Electronics supplies microcomputer circuitry to a company that incorporates microprocessors into refrigerators and other home appliances. One of the components has an annual demand of 2...", "stars": 3 }, { "url": "\/study-help\/questions\/question-1-what-is-cultural-relativism-and-how-does-it-8489934", "description": "Question 1: What is cultural relativism, and how does it influence the study of cultures?", "stars": 3 }, { "url": "\/study-help\/questions\/how-does-the-concept-of-hegemony-relate-to-culture-8489935", "description": "How does the concept of hegemony relate to culture?", "stars": 3 }, { "url": "\/study-help\/questions\/a-3-phase-induction-motor-is-wound-for-poles-and-8489936", "description": "a 3 phase induction motor is wound for poles and is supplied from 3 phase 50 Hz system .calculate 1. the synchronous speed,2.speed of the motor when slip is .04 and 3.the rotor frequency when the...", "stars": 3 }, { "url": "\/study-help\/questions\/the-statute-of-international-court-of-justice-is-a-key-8489937", "description": "The statute of international court of justice is a key document in international law apart from establishing the international court of justice ,it plays other major roles under international law", "stars": 3 }, { "url": "\/study-help\/questions\/how-many-carbonhydrogen-and-oxygen-atomsbonds-are-present-in-buckminster-8489938", "description": "How many carbon,hydrogen and oxygen atoms\/bonds are present in Buckminster Fullerene?", "stars": 3 } ], "next_back_navigation": { "previous": "\/study-help\/questions\/all-of-the-following-would-be-used-in-the-computation-4288592", "next": "\/study-help\/questions\/the-balanced-scorecard-bsc-has-been-advised-by-kaplan-4288594" }, "breadcrumbs": [ { "name": "Study help", "link": "https:\/\/www.solutioninn.com\/study-help\/questions-and-answers" }, { "name": "Business", "link": "https:\/\/www.solutioninn.com\/study-help\/questions-and-answers\/business" }, { "name": "Accounting", "link": "https:\/\/www.solutioninn.com\/study-help\/questions\/business-accounting" }, { "name": "On January 1, Hillcrest Co. acquired a 40% interest in Preston, Inc.", "link": "https:\/\/www.solutioninn.com\/study-help\/questions\/on-january-1-hillcrest-co-acquired-a-40-interest-in-4288593" } ], "skill_details": { "skill_id": "9", "skill_name": "Accounting", "parent_id": "1" } } } }