Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jun 10, 2024

STUInc.acquireda25%stakeinVWXLtdfor$250,000onJanuary1st,2023.VWX Ltd reported net income of $70,000 for the year ended December 31st, 2023. Calculate: a)STUInc.'sshareofincomefromitsinvestmentinVWXLtdfortheyear.b)Equity methodinvestmentbalanceattheendoftheyear.c)Journalentrytorecordthe recognition of income from the investment.

STU Inc. acquired a 25% stake in VWX Ltd for $250,000 on January 1st, 2023. VWX Ltd reported net income of $70,000 for the year ended December 31st, 2023. Calculate:
a) STU Inc.'s share of income from its investment in VWX Ltd for the year. b) Equity

method investment balance at the end of the year. c) Journal entry to record the recognition of income from the investment.

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

Recommended Textbook for

Accounting Principles

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

10th Edition

1119491630, 978-1119491637, 978-0470534793

Students also viewed these Accounting questions

Question

★★★★★

What will be the nominal rate of return on a preferred stock with a $100 par value, a stated dividend of 8 percent of par, and a current market price of? (a) $60, (b) $80, (c) $100, and (d) $140?

Answered: 1 week ago

Question

★★★★★

Southern Management Corporation (SMC) fired Mukhtak Taha after some personality conflicts with his supervisor, Debra Wylie-Forth. Soon thereafter, Michael McGovern, a maintenance supervisor, notified...

Answered: 1 week ago

Question

★★★★★

1. Understand specific developmental theories that have been proposed to explain offending

Answered: 1 week ago

Question

★★★★★

Compute the current ratio and acid-test ratio for each of the following separate cases. (Round ratios to two decimals.) Which company case is in the best position to meet short-term...

Answered: 1 week ago

Question

★★★★★

A firm has an outstanding issue of bonds with a face value of $1,000 and an 8.5 percent coupon interest rate. The issue has 9 years remaining to its maturity date. Requirement 1: If interest is paid...

Answered: 1 week ago

Question

★★★★★

On July 31, 2025, Novak Company engaged Minsk Tooling Company to construct a special-purpose piece of factory machinery. Construction began immediately and was completed on November 1, 2025. To help...

Answered: 1 week ago

Question

★★★★★

Customer demand for some finished good is forecast at 1,000 units for January, 2,000 units for February, and 3,000 units for March. If the company that produces this finished good has nothing in...

Answered: 1 week ago

Question

★★★★★

Consider the random phasor sum of Section 2.9 with the single change that the phases $\phi_{k}$ are uniformly distributed on $(-\pi / 2, \pi / 2)$. Find the following quantities: \(\bar{r},...

Answered: 1 week ago

Question

★★★★★

An idealized model of the normalized power spectral density of a gas laser oscillating in $N$ equal-intensity axial modes is \[ \widehat{\mathcal{G}}(v)=\frac{1}{N} \sum_{n=-(N-1) / 2}^{(N-1) / 2}...

Answered: 1 week ago

Question

★★★★★

According to Figure 1.2, the EU is a major customer of exports from Africa and the Middle East. What types of products do you think these areas produce for export, and why do you think the EU is...

Answered: 1 week ago

Question

★★★★★

Compare the results of Exercise 3 with those obtained via the program arima.rob. Data From Exercise 3: Use the package tsoutliers to detect outliers in the 9th and 10th series of the data set...

Answered: 1 week ago

Question

★★★★★

Hang in there! 1 point possible (graded) A cube of unknown volume is suspended by a string from the ceiling. You lift a glass of water over your head and partially submerge the block in the water,...

Answered: 1 week ago

Question

★★★★★

wHat are expert SySteMS? Appendix

Answered: 1 week ago

Question

★★★★★

What are typiCal interenterpriSe proCeSSeS? Appendix

Answered: 1 week ago

Question

★★★★★

Google or Bing each of the five ERP vendors discussed in this chapter extension. In what ways have their product offerings changed since this edition was written? Do those vendors have new products?...

Answered: 1 week ago

Previous Question Next Question