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Equity method of accounting for Investments On January 2, 2011, Coca-Cola Company acquired 45% of the stocks of Coca-Cola FEMSA for $30 million in cash. Coca-Cola Company accounts for its investment using the equity method. At the time of acquisition, Coca-Cola FEMSA' balance sheet was as follows (in millions): Assets : Current Assets 20 Property & equipment, net 415 Patents & Trademarks 150 Total Assets 585 Liabilities & Equity Curent Liability 42 Longterm debt 518 Capital Stock 12 Retained Earnings 13 Total Liability & Equity 585 Valuation of Coca-Cola FEMSA' assets and liabilities revealed that its reported patents and trademarks (10-year life) had a fair value of $160 million and it had unrecognized brand names (15-year life) worth $9 million. Coca-Cola FEMSA's December 31, 2014, retained earnings balance is $25 million. For 2014, it reported net income of $2.5 million and paid $650,000 in dividends. Required: 1. Prepare the 2014 entries to report the above information on Coca-Cola' books? Show all your calculations. 2. Calculate the Investment in Coca-Cola FEMSA balance, reported on Coca-Cola' December 31, 2014 Show all your calculations
Preferred dividends have been paid every year except for the preceding two years and the current year. If $145,000 is to be distributed as a dividend for the current year, what total amount will be distributed to the preferred stockholders?
Franco and Jason share income and losses in a 2:1 ratio after allowing for salaries to Franco of $15,000 and $30,000 to Jason. If the partnership suffers a $15,000 loss, by how much would Jason's capital account increase?
Explain the role of the FASB in monitoring and controlling business reporting and accounting practices in the modern organization.
For which of the segments would information have to be disclosed in accordance with professional pronouncements? A. Segments A, B, C, and D b. Segments A, B, and C c. Segments A and B d. Segments A and D 57. In January 2011, Post, Inc.
A taxpayer, who uses the cash method of accounting for tax purposes, received income in 1989, 1990, 1991 and 1992 for illegal espionage activities performed in 1985.
Many companies make annual reports available on their corporate Internet home page. Anuual reports also can be accessed through the SEC'S Edgar system at www.sec.gov (under fling type search for 10-K).
Companies characterized by the production of basically homogeneous products will most likely use which of the following methods for the purpose of averaging costs and providing management with unit-cost data?
In government wide financial statements information about fiduciary funds should be presented in a discrete column to the right of the business type activities
What is the impact of not balancing intercompany payables/receivables on a monthly basis? What is the impact on not eliminating intercompany payables/receivables during the consolidation?
Locate the income statement of a company in each of the following industries: pharmaceutical, technology, retailer-groceries, and automobile manufacturer.
A check correctly written and paid by the bank for $395 is incorrectly recorded on the company's books for $359. The appropriate adjustment on a bank reconciliation would be to?
Which pair of accounts follows the rules of debit and credit, in relation to increases and decreases, in the same manner?
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