U S GAAP requires firms to account for equity investments in which ownership is between 20 and 50 using the equity method Ace Corporation owns 35 of Spear Corporation during 2014 Spear Corporation reported net income of $100 4 million for 2014 and declared and paid dividends of $25 million during t...

a Equity income of 3514 million 035 1004 million will be ...

U.S. GAAP requires firms to account for equity investments in which ownership is between 20% and 50%

Question:

U.S. requires firms to account for equity investments in which ownership is between 20% and 50% using the equity method. Ace owns 35% of Spear during 2014. Spear
Corporation reported net income of $100.4 million for 2014 and declared and paid dividends of $25 million during the year.
a. Calculate the equity income that Ace reports in 2014 related to its ownership in Spear What does Ace report in its statement of cash flows for 2014 related to its ownership in Spear Assuming that Ace Corporation's account, Investment in Spear is $1,100 million at the beginning of 2014, what is the balance in the account at the end of 2014? Support your answers with calculations.
GAAP
Generally Accepted Accounting Principles (GAAP) is the accounting standard adopted by the U.S. Securities and Exchange Commission (SEC). While the SEC previously stated that it intends to move from U.S. GAAP to the International Financial Reporting Standards (IFRS), the... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...