Accounting

Problems 1.When an investor uses the uprightness regularity to account for investments in common extraction, cash dividends received by the investor from the investee should be recorded as d.A tax write-off from the investors share of the investees profits 3.Sisk Company has possess 10 per centum of Maust, Inc., for the past several years. This ownership did not appropriate Sisk to have significant influence over Maust. Recently, Sisk acquired an supernumerary 30 percent of Maust and now testament use the rightfulness method acting. How will the investor report this change? c.A retrospective limiting is do to restate all prior years utilize the rectitude method. 5.In January 2008, Wilkinson, Inc., acquired 20 percent of the outstanding common computer memory of Bremm, Inc., for $700,000. This investment gave Wilkinson the ability to exercise significant influence over Bremm. Bremms assets on that date were recorded at $3,900,000 with liabilities of $900 ,000. Any disintegration of cost over book value of the investment was attributed to a patent having a remaining useful life of 10 years. In 2008, Bremm report net profit income of $170,000. In 2009, Bremm reported net income of $210,000. Dividends of $70,000 were paid in each of these two years. What is the equity method balance of Wilkinsons Investment in Bremm, Inc., at declination 31, 2009? c.$756,000.

210,000 * 20% = 42,000 70,000 * 20% = 14,000 700,000 + 42,000 + 14,000 = 756,000 9.Panner, Inc., owns 30 percent of Watkins and applies the equity method. During the flow rate year, Panner buys par entage costing $54,000 and then sells it to ! Watkins for $90,000. At the end of the year, Watkins calm holds nevertheless $20,000 of merchandise. What amount of unrealized gross profit must(prenominal) Panner render in reporting this investment using the equity method? b.$4,800. 90,000 -54,000-20,000 = 16,000 16,000 * 30% = 4800 12.On January 1, 2008, Alison, Inc., paid $60,000 for a 40 percent interest in Holister Corporation. This investee had assets with a book value of...If you expiration to get a full essay, order it on our website: BestEssayCheap.com

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