Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please solve for two blanks provided... show detailed steps if possible... On January 1, 2023, Stream Company acquired 21 percent of the outstanding voting shares
Please solve for two blanks provided... show detailed steps if possible...
On January 1, 2023, Stream Company acquired 21 percent of the outstanding voting shares of Q-Video, Incorporated, for $718,000,Q. Video manufactures specialty cables for computer monitors. On that date, Q Video reported assets and liabilities with book values of $26 million and $768.000, respectively. A customer list complled by Q.Video had an appraised value of $312,000, although it was not recorded on its books. The expected remaining life of the customer list was six years with straight-line amortization deemed appropriate. Any remaining excess cost was not identifiable with any particular asset and thus was considered goodwill Q-Video generated net income of $284,000 in 2023 and a net loss of $108,000 in 2024 in each of these two years, Q-Video declared and paid a cash dividend of $10.000 to its stockholders During 2023, Q.Video sold inventory that had an original cost of $80,000 to 5 tream for $160,000. Of this balance, $77000 was resold to outsiders during 2023, and the remainder was sold during 2024. In 2024, Q Video sold inventory to Stream for $180,000. This inventory had cost only $144,000. Stream resold $98,000 of the inventory during 2024 and the rest during 2025 Required: For 2023 and then for 2024 , compute the amount that Stream should report as income from its investment in Q-Video in its external financial statements under the equity method. Note: Enter your answers in whole dollars and not in millions Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored 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