Applies the equity method of accounting

Assignment Help Accounting Basics
Reference no: EM13297835

Buyco holds 25 percent of outstanding shares of Marqueen and appropriately applies the equity method of accounting. Excess cost amortization (related to a patent) associated with his investment amounts to $10,000 per year. For 2012, Marqueen reported earnings of $100,000 and pays cash dividends of $30,000. During that year, Margueen acquired inventory for $50,000, which it then sold to buyCo for $80,000. At the end of 2012, BuyCo continued to hold merchandise with a transfer price of $32,000. A) What equity in Investee income should BuyCo report for 2012? . B) how will intra-entry transfer affect BuyCo's reporting in 2013 ?. C) if BuyCO had sold the inventory to Marqueen, whether the answers to (a) and (b) would change ?

Reference no: EM13297835

Questions Cloud

Calculate the mass of the meter stick : A meter stick balances horizontally on a knife-edge at the 50.0 cm mark. What is the mass of the meter stick
Determine the maximum number of large trucks and buses : The traffic stream consists of cars, buses, and large trucks (no recreational vechicles). A weekday directional peak-hour volume of 1800 vehicles (familar users) is observed, with 700 arriving in the most congested 15 min period.
Benefits are ignored in the capital budgeting process : What might happen if intangible benefits are ignored in the capital budgeting process? What steps can management take to incorporate these benefits into the capital budget evaluation process?
Describe what is the concentration of b at equilibrium : A(aq) 2B(aq) Kc-7.97e-6 at 500K If a 3.40 M sample of A is heated to 500 K, what is the concentration of B at equilibrium
Applies the equity method of accounting : Applies the equity method of accounting.
Carbon disulfide is make by heating sulfur and charcoal : Carbon disulfide is prepared by heating sulfur and charcoal. The chemical equation is S2(g)+C(s) CS2(g) Kc=9.40 at 900K How many grams of CS2(g) can be prepared by heating 16.4 moles of S2(g)
Size and growth rate of the international market : Do a Country factor Analysis and make recommendations to Management regarding the Country factors.
Compute the intensity of the transmitted beam : Unpolarized light passes through five successive Polaroid sheets, What is the intensity of the transmitted beam
Determine time required to reach temperature of panel : A 3-mm thick panel (1 m x 1 m) of aluminum alloy (k = 177 W/m. K, Cp = 875 J/kg. K, and p(rho)= 2770 kg/m3) is heated in a large oven with air at T = 175oC and a convective heat transfer coefficient of h = 40 W/m2.K.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Use of computer time on a remote supercomputer

Which of these is least likely to be an example of cloud computing service?

  Important risks for audit of acquisition

What are the most important risks for the audit of the acquisition and payment cycles in the automotive industry?

  Can a percent of change be negative

If the current assets in 2010 were 112,004 and in 2009 the current assets were 113,030 the change is -1,026. That would mean the percent of change is -.009%. Is this correct? Can a percent of change be negative? If so, is this the proper way to wr..

  Post the closing entries to income summary

Instructions, (a) Journalize the closing entries at April 30. (b) Post the closing entries to Income Summary and Retained Earnings. Use T accounts. (c) Prepare a post-closing trial balance at April 30.

  Total ordinary income and capital gain

During the year, $22,500 is distributed to Elk"s three equal shareholders, all of who are calendar year taxpayers. What are Elk"s total ordinary income and capital gain passthroughs for the year?

  Amount report as income tax expense income statements

HD determined that it was more likely than not that 30% of the deferred tax asset ultimately would not be realized. HD made no estimated tax payments during 2011. What amount should HD report as income tax expense in its 2011 income statement?

  What is the optimal number of employees at checkout

Atlantic Video, a small video rental store in Philadelphia, is open 24 hours a day, and-due to its proximity to a major business school-experiences customers arriving around the clock. A recent analysis done by the store manager indicates that the..

  Prepare income and expenditure account and balance sheet

Annual subscription for each member is Rs.120,Rs.240 being in arrear for 1998. Prepare Income & Expenditure Account and Balance Sheet.

  Complete cash basis versus accrual basis income

Received $1,000 from customers as deposits on orders of new instruments to be sold to the customers in April. Complete the following statements.

  Mortgage according to the loan agreement

You borrow $165,000 to buy a house. The mortgage rate is 7.5 percent and the loan period is 30 years. Payments are made monthly. If you pay the mortgage according to the loan agreement, how much total interest will you pay?

  Journalize the adjusting entry

Journalize the adjusting entry to adjust the unearned fees account.b. Journalize the adjusting entry to record the accrued fees.

  Employees in share option plans-fair value method

The measurement date for shares issued to employees in share option plans accounted for using the fair-value method is:

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd