How does valuing an investment under the equity method

Assignment Help Accounting Basics
Reference no: EM13133931

On January 10, 2012 Badger Co. purchased 30% of the outstanding stock of Crest Co. fir $123,000. Crest paid total dividend to all shareholders of $15,000 on July 15. Crest had a net loss of $25,000 for 2012.
A.) Journalize Badger's purchase of the stock, receipt of dividend, and adjusting entry for the equity loss in Crest Co. stock.
B.) Compute the balance of Investment in Crest Co. Stock for December 31, 2012.
C.) How does valuing an investment under the equity method differ from valuing an investment at fair value?

Reference no: EM13133931

Questions Cloud

What is the break-even salvage value : Assume no taxes, and a stable exchange rate of $.60 per NZ$ over the next two years. All cash flows are remitted to the parent. What is the break-even salvage value?
Details regarding geometry : An equilateral triangle has vertices at (0,0) and (6,0) in a coordinate plane. what are the coordinates of the third vertex?
What is dell strategy for success in the marketplace : what is Dell's strategy for success in the marketplace? Does the company rely primarily on a customer intimacy, operational excellence, or product leadership customer value.
Research paper on marijuana : I need help with writing my research paper on marijuana! I need some sources.
How does valuing an investment under the equity method : On January 10, 2012 Badger Co. purchased 30% of the outstanding stock of Crest Co. fir $123,000. Crest paid total dividend to all shareholders of $15,000 on July 15. Crest had a net loss of $25,000 for 2012.
What proportion of faculty consume four cups : 5 cups of coffee per day with a standard deviation of 1.5. The distribution is normal. What proportion of faculty consume an amount between 4 and 6 cups?
What is the equilibrium price and quantity in market : Construct a graph showing supply and demand in the electronic dog feeder market and how are the laws of supply and demand illustrated in this graph? Explain your answers.
What is the molarity of a solution : What is the molarity of a solution in which 2.69 g of C12H22O11 (MM=342.29 g/m) is dissolved in enough water to make 225 mL of solution?
Give comments:religion can be associated with positive : give comments:Religion can be associated with positive emotions

Reviews

Write a Review

Accounting Basics Questions & Answers

  Income tax journal entry for fairfax company

Fairfax Company had a balance in Deferred Tax Liability of $840 on December 31, 2014, resulting from depreciation timing differences. Make the income tax journal entry for the Fairfax Company for December 31, 2014.

  Prepare dold''s journal entries for the initial transaction

Prepare Dold's journal entries for the initial transaction, recognition of interest each year, and the collection of $35,843 at maturity. (Round answers to 0 decimal places, e.g. $6,538. Credit account titles are automatically indented when the am..

  Preparing a retained earnings statement

It declared and paid a dividend of $21,000 as a cash dividend. In 2010, the company recorded and adjustment of $10,000 due to the understatement (from a math error) of 2009 depreciation. Prepare a retained earnings statement for the year ending De..

  Calculating deprciation expense

O'Bria Service Company purchased a copier on January 1, 2012, for $17,000 and paid an additional $200 for delivery charges. The copier was estimated to have a life of four years or 800,000 copies.

  How many dollars of revenue must the company generate

Circle K Furniture has a contribution margin ratio of 16%. If fixed costs are $176,800, how many dollars of revenue must the company generate in order to reach the break-even point?

  Find the management discussion and analysis

you will be reading portions of the 2011 Comprehensive Annual Financial Report (CAFR) issued by Broward County, Florida. You will be asked to prepare "executive summaries" of the information reported.

  Implementing the standard

When the financial vice president determines that early implementation of the standard will adversely affect the reported net income for the year, he discourages Hoger from implementing the standard until it is required.

  Problem regarding minimum pretax return

The machine would reduce labor and other costs by $67,000 per year. The company requires a minimum pretax return of 15% on all investment projects. The net present value of the proposed project is closest to:

  Did freda actually or constructively receive

What could explain Freda's willingness to spread her salary over a longer period of time?

  Preparation of cash flow statement and net cash flow

Preparation of Cash flow statement and computing net cash flow, From the following selected data, compute:

  Net realizable value of the accounts

Compute the net realizable value of the accounts receivable of Lucille Company at December 31, 2007.

  Employee business expenses and agi limit

Sarah incurred employee business expenses of $5,000 consisting of $3,000 business meals and $2,000 customer entertainment. She provided an adequate accounting to her employer's accountable plan and received reimbursement for one-half of the total ..

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