What technique of accounting should web-browser use

Reference no: EM134057

Question :

Web-Browser, a non-public corporation, is an application service provider. Web-Browser gives web-based, full-service employee eligibility administration and benefits to mid- sized companies and professional benefit preparation administrators serving middle market clients.

In 1998, Web-Browser acquired a 15 % limited partner interest in Internet Access Company (Internet Access), a limited partnership, for $100,000. Suppose that Internet Access is not a variable interest entity and could not be accounted for under FIN 46(R), Consolidation of Variable Interest Entities.

In June 1999, Web-Browser acquired an additional 15 % limited partner interest in Internet Access for $100,000 and loaned Internet Access $184,000 to support its ongoing operations. The $184,000 loan funded all of Internet Access' cash needs for the previous six-month period and was treated by Web-Browser as an advance for accounting purposes.

Required:

What technique of accounting should Web-Browser use to account for its investment in Internet Access at 31^st December, 1998, and June 30, 1999 (i.e., cost or equity method)?

Reference no: EM134057

Questions Cloud

What is tourism : What is tourism What are the sequences of events when purchasing a package

Discuss the benefits of training : Provide an overview of all the training methods and discuss their advantages and disadvantages Discuss the benefits of training

The changing approaches to tourism policy and planning : Identify the key elements in the tourism policy and planning process Critically review the changing approaches to tourism policy and planning

What expense could sage company record : What expense could Sage Company record as a result of the facts above for the year ended 31 st December, 2012?

What technique of accounting should web-browser use : What technique of accounting should Web-Browser use to account for its investment in Internet Access at 31 st December, 1998, and June 30, 1999 (i.e., cost or equity method)?

Prepare a value analysis and an evaluation and distribution : Prepare a value analysis and an evaluation and distribution of excess schedule for the investment in Salmon.

What controls are present in stage of handling cash receipts : What controls are present in this stage of handling cash receipts? What steps could be taken regularly by the manager or other supervisor to provide maximum effectiveness to these controls?

Evaluate the incremental effect on profit : Prepare an incremental analysis in good form to evaluate the incremental effect on profit of discontinuing the snail extraction tool line.

Evaluate the largest tax deduction : Evaluate Jacqueline's cost recovery for 2013. Evaluate the largest tax deduction possible in 2013 for the equipment:

User Account

All Pages