Net income dividends declared

Assignment Help Accounting Basics
Reference no: EM13659328

On January 1, 2014, Ridge Road Company acquired 20 percent of the voting shares of Sauk Trail, Inc. for $3,200,000 in cash. Both companies provide commercial Internet support services but serve markets in different industries. Ridge Road made the investment to gain access to Sauk Trail's board of directors and thus facilitate future cooperative agreements between the two firms. Ridge Road quickly obtained several seats on Sauk Trail's board which gave it the ability to significantly influence Sauk Trail's operating and investing activities.

The January 1, 2014, carrying amounts and corresponding fair values for Sauk Trail's assets and liabilities follow:

Carrying Amount Fair Value
Cash and receivables $ 135,000 $ 135,000
Computing equipment 5,225,000 6,100,000
Patented technology 125,000 4,050,000
Trademark 175,000 2,050,000
Liabilities (210,000 ) (210,000 )

Also as of January 1, 2014, Sauk Trail's computing equipment had a remaining estimated useful life of seven years. The patented technology was estimated to have a four year remaining useful life. The trademark's useful life was considered indefinite. Ridge Road attributed to goodwill any unidentified excess cost.

During the next two years, Sauk Trail reported the following net income and dividends:

Net Income Dividends Declared
2014 $ 1,850,000 $ 175,000
2015 2,035,000 185,000

a. How much of Ridge Road's $3,200,000 payment for Sauk Trail is attributable to goodwill?

b. What amount should Ridge Road report for its equity in Sauk Trail's earnings on its income statements for 2014 and 2015?

c. What amount should Ridge Road report for its investment in Sauk Trail on its balance sheets at the end of 2014 and 2015?

Reference no: EM13659328

Previous Q& A

  Explain the consumers equilibrium

Distinguish between skimming price and penetration price policy. Which of these policies is relevant in pricing a new product under different competitive conditions in the market?

  Income before income taxes

Income before income taxes

  Common shares

Common shares

  Chinese business and communication

Research paper based on the the MOST information provided from the PPT - Chinese business and communication

  What is the electrostatic force on the positive charge

A 5.0 C charge is 10m from a -2.0C charge. What is the electrostatic force on the positive charge?

  What is the force on the alpha particle at the instant

A 4.57 MeV alpha particle from radium226Ra decay makes a head-on collision with a uranium nucleus. A uranium nucleus has 92 protons. What is the force on the alpha particle at the instant when it is at the distance of closest approach?

  What current is required for the stored energy

The magnetic potential energy stored in a certain inductor is 22.5 mJ when the current in the inductor is 57.5 mA. Compute the inductance. What current is required for the stored energy to be 150 mJ?

  What is the angular speed of the disk

A uniform disk that has a mass M rotates freely about a horizontal axis that goes during the center and is perpendicular to the plane of the disk. A particle of mass m rests at the top of the disk on the rim directly above the pivot. As the particle ..

  Energy removed from an engine as heat during one cycle

If the energy removed from an engine as heat during one cycle is3.4x102 J, how much energy should be added to the engine through one cycle in order for it to operate at 25 percent efficiency? Answer in units of J.

  Solenoid of radius-discover its inductance

A solenoid of radius 2.2 cm has350 turns and a length of 17 cm. Discover its inductance. Find the rate at which current should change through it to produce an emf of 75 mV.



2/1/2017 3:56:04 AM

This is awesome :) several hours late is okay, you most likely force an all nighter for this, and I gratefully welcome your exertion on composing it. You all are more than marvelous, genuine experts in the paper composing industry. Will return to! Much thanks to you.

Write a Review


Similar Q& A

  Cindy age 40 and don age 39 cowen are married dons 17 year

cindy age 40 and don age 39 cowen are married. dons 17 year old son from a former marriage lives with them. they also

  Insurance company begins processing casualty claims

Insurance Company begins processing casualty claims

  To the nearest whole dollar what should be the total sales

at a sales volume of 37500 units thoma corporations sales commissions a cost that is variable with respect to sales

  What would be the practical consequences on the fast-food

julie jones was hired by a popular fast-food restaurant as an order taker and cashier. shortly after taking the job she

  Nancy gave her grandson sean twenty acres of land her tax

nancy gave her grandson sean twenty acres of land. her tax basis in the land was 25000. nancys marginal tax rate for

  Hannon corporation produces high-performance rotors it

1 mussatto corporation produces snowboards. the following per unit cost information is available direct materials 16

  Using the proper interest table calculate the present

using the appropriate interest table compute the present values of the following periodic amounts due at the end of the

  All sales are made on account at 20 per unit sixty percent

3. comprehensive budgeting the balance sheet of watson company as of december 31 19x1 follows. watson company balance

  The working capital would be released for use elsewhere

the working capital would be released for use elsewhere when the project is completed. what is the net present value of

  Direct material price variance

If a company follows a practice of isolating variances at the earliest point in time, what would be the appropriate time to isolate and recognize a direct material price variance?

  Use the high-low method to estimate the companys energy

jonathan macintosh is a highly successful pennsylvania orchardman who has formed his own company to produce and package

  The balance in the prepaid insurance account before

the balance in the prepaid insurance account before adjustment at the end of the year is 14800. journalize the

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