Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

View Policies Current Attempt in Progress On January 1, 2017, Crane Co. purchased 22,000 shares (a 10% interest) in Elton John Corp. for $1.480,000. At

image text in transcribed
View Policies Current Attempt in Progress On January 1, 2017, Crane Co. purchased 22,000 shares (a 10% interest) in Elton John Corp. for $1.480,000. At the time, the book value and the fair value of John's net assets were $12,100,000 On July 1, 2018, Crane paid $3,310,000 for 44,000 additional shares of John common stock, which represented a 20% investment in John. The fair value of John's identifiable assets net of liabilities was equal to their carrying amount of $13,200,000. As a result of this transaction, Crane owns 30% of John and can exercise significant influence over John's operating and financial policies. Any excess fair value is attributed to goodwill.) John reported the following net income and declared and paid the following dividends. Net Income Dividend per Share Year ended 12/31/17 $630,000 None Six months ended 6/30/18 490,000 Six months ended 12/31/18 754,000 $150 Determine the ending balance that Crane Co. should report as its investment in John Corp. at the end of 2018. Investment in Elton John Corp

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

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

Handbook Of Energy Audits

Authors: Albert Thumann, Terry Niehus, William J. Younger

9th Edition

1466561629, 978-1466561625

More Books

Students also viewed these Accounting questions

Question

The model in Exercise 28 starting from (200, 300).

Answered: 1 week ago

Question

What is job enlargement ?

Answered: 1 week ago

Question

what is the most common cause of preterm birth in twin pregnancies?

Answered: 1 week ago

Question

Which diagnostic test is most commonly used to confirm PROM?

Answered: 1 week ago

Question

What is the hallmark clinical feature of a molar pregnancy?

Answered: 1 week ago