A patent held by holister having a 12500 book value was

Reference no: EM13483505

Alison, Inc., paid $83,400 for a 40 percent interest in Holister Corporation's common stock. This investee had assets with a book value of $267,000 and liabilities of $100,000. A patent held by Holister having a $12,500 book value was actually worth $36,500. This patent had a six-year remaining life. Any further excess cost associated with this acquisition was attributed to goodwill. During 2012, Holister earned income of $42,500 and paid dividends of $14,000. In 2013, it had income of $72,700 and dividends of $19,000. During 2013, the fair value of Allison's investment in Holister had risen from $94,400 to $105,880. a. Assuming Alison uses the equity method, what balance should appear in the Investment in Holister account as of December 31, 2013? Investment in Holister $ b. Assuming Alison uses the fair-value option, what income from the investment in Holister should be reported for 2013? Investment income $.

Reference no: EM13483505

Questions Cloud

What is the incremental profit to get a rough idea of the : schweser satellites inc. produces satellite earth stations that sell for 100000 each. the firms fixed costs f are 2

The individual project will consist of you picking a : the individual project will consist of you picking a country of your choice. the project will be due the last week of

The table below shows your stock positions at the beginning : the table below shows your stock positions at the beginning of the year the dividends that each stock paid during the

Wich initiative should ofs undertake 3 should ofs use the : has anyone done these questions guideline questions 1.review the 11 strategic initiatives described in exhibit 8 and

A patent held by holister having a 12500 book value was : alison inc. paid 83400 for a 40 percent interest in holister corporations common stock. this investee had assets with a

There is no bargain purchase option and reagan guarantees a : reagan inc. signed a lease for some equipment having a 9-year useful life with silver leasing co. the lease payments

Ater the recap dyes stock price is 750 if dye had 60 : dye trucking raised 150 million in new debt and used this to buy back stock. after the recap dyes stock price is 7.50.

The reyes loaned their daughter rachael 25000 so that she : the reyes loaned their daughter rachael 25000 so that she could open up her own business. the terms of the loan require

Prepare a product margin report for one job that involves : jardon painting paints the interiors and exteriors of homes and commercial buildings. the company uses and

User Account

All Pages