Question 1) At mid year, National Steel Fabricators, Inc purchased a 35 ownership interest in Keystone Consolidated, Inc for $40 million At year end, Keystone reported an operating loss of $6 million, of which only $2 million related to the second half of the year Despite the operating loss, Keystone paid its regular quarterly dividend of $1 million in both the third and fourth quarter Required 1 Calculate the income statement effect for National Steel at year end associated with its investment in Keystone Answer 2 Calculate the book value that National Steel should record on its balance sheet for its investment in Keystone at year end Answer

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Question  1) At mid year, National Steel Fabricators, Inc  purchased a 35  ownership interest in Keystone Consolidated, Inc  for $40 million  At year end, Keystone reported an operating loss of $6 million, of which only $2 million related to the second half of the year  Despite the operating loss, Keystone paid its regular quarterly dividend of $1 million in both the third and fourth quarter Required 1  Calculate the income statement effect for National Steel at year end associated with its investment in Keystone  Answer              2  Calculate the book value that National Steel should record on its balance sheet for its investment in Keystone at year end  Answer

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Question #1) At mid-year, National Steel Fabricators, Inc. purchased a 35% ownership interest in Keystone Consolidated, Inc.

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Horngrens Accounting

Question #1) At mid-year, National Steel Fabricators, Inc. purchased a 35% ownership interest in Keystone Consolidated, Inc.

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Horngrens Accounting

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