Prepare a schedule showing the income or loss

Assignment Help Accounting Basics
Reference no: EM131119155

Fair Value to Equity Method with Goodwill On January 1, 2010, Millay Inc. paid$700,000 for 10,000 shares of Genso Company's voting common stock, which was a 10% interest in Genso. At that date the net assets of Genso totaled $6,000,000. The fair values of all of Genso's identifiable assets and liabilities were equal to their book values. Millay does not have the ability to exercise significant influence over the operating and financial policies of Genso. Millay received dividends of $1.50 per share from Genso on October 1, 2010. Genso reported net income of $550,000 for the year ended December 31, 2010. On July 1, 2011, Millay paid $2,325,000 for 30,000 additional shares of Genso Company's voting common stock which represents a 30% investment in Genso. The fair values of all of Genso' identifiable assets net of liabilities were equal to their book values of $6,550,000. As a result of this transaction, Millay has the ability to exercise significant influence over the operating and financial policies of Genso. Millay received dividends of $2.00 per share from Genso on April 1, 2011, and $2.50 per share on October 1, 2011. Genso reported net income of $650,000 for the year ended December 31, 2011, and $350,000 for the 6 months ended December 31, 2011.

(a) Prepare a schedule showing the income or loss before income taxes for the year ended December 31, 2010, that Millay should report from its investment in Genso in its income statement issued in March 2011.

(b) During March 2012, Millay issues comparative financial statements for 2010 and 2011. Prepare schedules showing the income or loss before income taxes for the years ended December 31, 2010 and 2011, that Millay should report from its investment in Genso.
(AICPA adapted) 

Reference no: EM131119155

Previous Q& A

  True of transformational leadership

Which of the following is true of transformational leadership?

  Indicate whether the amount is a gain or loss

Assume that the currency of Foreign Sub is the functional currency. Compute the change in the cumulative translation adjustment for 2010. Indicate whether the change increases or decreases shareholders' equity. Assume that the U.S. dollar is the func..

  Prepare a schedule that will show the corrected net income

Prepare a schedule that will show the corrected net income for the years 2009 and 2010. All items listed should be labeled clearly. (Ignore income tax considerations.)

  True of house path-goal theory

Which of the following is true of House's path-goal theory?

  Consumer goods manufacturer uses periodic review system

A consumer goods manufacturer uses a periodic review system to manage field inventories. This means, once a period, field inventory clerks check to see if inventory is below reorder point; if so thay order an amount equal to the EOQ. The materials ma..

  The company uses the periodic inventory method

Merchandise inventory costing $18,200 was in the warehouse at December 31, 2009, but was incorrectly omitted from the physical count at that date. The company uses the periodic inventory method.

  Continuous improvement project to reduce defects

You have been hired as a new procurement and supply manager at a company that manufactures and assembles construction equipment. The management team is not satisfied with the cost to manufacture and assemble the construction equipment as well as the ..

  Prepare a worksheet to consolidate prestige and booking

Complete Exhibit 7.35 to show income effects and balance sheet adjustments to be reflected in the December 31, 2011 Eliminations column of the consolidated worksheet. Complete Exhibit 7.36 to trace the noncontrolling interests in Booking, Inc.'s earn..

  Explain the important characteristics of risk management

You are a procurement manager for a company that manufactures and assembles construction equipment. Your supervisor has asked you to develop a new strategy for risk management and procurement management that will offer a competitive advantage in the ..

  Describe the security issues of bcbst in regard to integrity

Describe the security issues of BCBST in regard to confidentiality, integrity, availability, and privacy based on the information provided in the BCBST case.

Reviews

Write a Review

 

Similar Q& A

  Stillwell corporations income statement

Stillwell Corporations income statement - Loss from damages caused by a volcano eruption in Iona and Loss from the sale of short-term investments.

  Compute the total expected dollar sales for next period

Compute the total expected dollar sales for next period and compute the number of units expected to be sold next period

  The standard operating capacity of corona manufacturing co

the standard operating capacity of corona manufacturing co. is 1000 units. a detailed study of the manufacturing data

  Johnson corporation acquired all of the outstanding common

johnson corporation acquired all of the outstanding common stock of smith corporation for 11000000 in cash. the book

  What is the amount collected by meier on april 25

On April 15, Meier Company sold merchandise to Curran Company for $5,000 on terms of 2/10, n/30, Assume a return of merchandise on April 20 of $850 and collection in full on April 25. What is the amount collected by Meier on April 25?

  Expected net cash flows

EXPECTED NET CASH FLOWS

  Research-based assignment focuses on the latest

This research-based assignment focuses on the latest available information about creating, organizing, and managing a total rewards program. Envision a service-based (insurance, telemarketing, or other) profit organization that employs 20,000 empl..

  Leslie mittelberg is considering the wholesaling of a

leslie mittelberg is considering the wholesaling of a leather handbag from kenya. she must travel to kenya to check on

  Making a cash distribution plan

Prepare a cash distribution plan as of September 30, 2009, showing how much cash each partner will receive if the offer to sell the assets is accepted.

  Indicate the reporting of the 2012 pension amounts in the

complete the following exercise. submit journal entries in an excel file and written segments in an ms word document.

  Prepare classified statement of financial performance

Provide a Report to Management of X Limited Company giving advice based on your results from the ratios - Prepare classified Statement of Financial Performance

  Holmes inc obtained significant influence over nadal

hatcher cosmetics acquired 10 of the 216000 shares of common stock of ramirez fashion at a total cost of 16 per share

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