How selig company should report the above facts

Reference no: EM131241796

Equity Investment

On July 1, 2014, Selig Company purchased for cash 40% of the outstanding capital stock of Spoor Corporation. Both Selig and Spoor have a December 31 year-end. Spoor Corporation, whose common stock is actively traded on the American Stock Exchange, paid a cash dividend on November 15, 2014, to Selig Company and its other stockholders. It also reported its total net income for the year of $920,000 to Selig Company.

Instructions

Prepare a one-page memorandum of instructions on how Selig Company should report the above facts in its December 31,2014, balance sheet and its 2014 income statement. In your memo, identify and describe the method of valuation you recommend. Provide rationale where you can. Address your memo to the chief accountant at Selig Company.

Reference no: EM131241796

Questions Cloud

What is the equation that models the number of minutes left : You can buy a 6-hour phone card for $5.00, but the fine print says that each minute actually costs you 1.5 minutes of time. What is the equation that models the number of minutes left on the card compared with the number of minutes you actually ta..

Discuss how gender roles are defined : ACF206 You must write 2000 words (you are allowed to be 10% under or over this, but no more). At least 3 articles or books need to be included in a bibliography that MUST be formatted and cited correctly.

Make a list of all material in each group : Once you have your stack of mail, organize it according to the household that received it. For example, if friends and family helped you collect mail, then keep mail sent to each address together. Make a list of all material in each group.

Calculate the force tending to tear apart the flange : The pressure at the flanged joint is 100 psig and the cross-sectional area of the hose at the flange is 10 in2. The area of the outlet nozzle is 1 in2 and the outlet velocity of water through it is 122.6 ft s-1. Calculate the force tending to tear ap..

How selig company should report the above facts : Prepare a one-page memorandum of instructions on how Selig Company should report the above facts in its December 31,2014, balance sheet and its 2014 income statement.

To what kind of customer is each piece of mail targeted : Based on the content of the mail pieces, determine what kind of information the various companies have about you, your friends, or your family in their databases. Are there indications on the mailers about what kind of interactions the recipient h..

What is the formula for figuring this out : What is the formula for figuring this out, if there is one? If not, where can I find literature explaining this question?

Write out an aggregate profile for each address : Write out an aggregate profile for each address. If you were a direct marketer, what kind of products and services would you market to each? What kind of offers would you create?

What is the velocity of the runner at point : a) How far has she run after 52.1 seconds? b) What is the velocity of the runner at this point?

User Account

All Pages