User Account

All Pages

What amount of equity income will emily record

Assignment Help Financial Accounting
Reference no: EM132485270

Emily Corporation purchased all of Ace Company's common stock on January 1, 2020, for $1,000,000 cash. The investee's stockholders' equity amounted to $400,000. The excess of $600,000 was due to an unrecorded patent with a six-year life. In 2020, Ace reported net income of $250,000 and paid dividends of $25,000.

Question 1: For 2020, what amount of Equity Income will Emily record?

a. $150,000

b. $125,000 $250,000 - 25,000 =

c. $175,000 $225,000

d. $825,000 $1,000,000 + $225,000 =

1,225,000

$1,225,000 - ($600,000/6) =

$1,225,000- (100,000) =

$1,125,000

Question 2: What is the Equity Investment balance at December 31, 2020?

Option a. $ 825,000

Option b. $1,100,000

Option c. $1,125,000

Option d. $1,175,000

Reference no: EM132485270

Questions Cloud

What is the correct adjusted ending cash balance : Annapolis Company's bank statement indicated an ending cash balance of $9,940. What is the correct adjusted ending cash balance
Determine What is the projects NPV : No new working capital would be required, and revenues and other operating costs would be constant over the project's 3-year life. What is the project's NPV?
Prepare budget showing the quantity of strawberries : Prepare budget showing the quantity of strawberries to be purchased each month for January, February, and March and in total for the quarter
Prepare the necessary closing entries at december : Prepare the necessary closing entries at December 31, 2018. American Chip Corporation's fiscal year-end is December 31 is a partial adjusted trial balance
What amount of equity income will emily record : Determine What is the Equity Investment balance at December 31, 2020? For 2020, what amount of Equity Income will Emily record?
Quality measurement proposal : For this assignment, you are required to write a 1,000-1,250 word paper on methods of quality measurement.
What are the cost of the land : Bevo T-shirt Company purchased land, paying $30,000 cash plus a $300,000 note payable. What are the cost of the land, land improvements
What amount did brockton budget for snow clearance : Removal to reach $320,200. This represents 127% of its budgeted cost. Rounded to the nearest $100, what amount did Brockton budget for snow clearance?
Prepare Alpha Company General Journal entries : Merchandise was sold to Bravo for $450 Use this information to prepare Alpha Company's General Journal entries for May 2 & May 3 entries

Reviews

Write a Review

Financial Accounting Questions & Answers

  Calculate the number of units to be produced

Osage Inc. has actual sales for May and June and forecast sales for July, August, September, and October as follows: Actual: May 5,900 units June 6,200 units Forecast: July 6,000 units August 6,800 units September 5,600 units October 3,700 units requ..

  Explain how the movie deals with the issue of genes

Explain how the movie deals with the issue of genes and environment

  The internet is a good place to get information that is

the internet is a good place to get information that is useful to you in your study of accounting. for example you can

  Evaluate the breakeven point in dollars

Evaluate the number of widgets which must be sold to break even. Evaluate the number of widgets which must be sold to break even. Evaluate the breakeven point in dollars

  The generally accepted accounting principles

The accounting profession follows a set of guidelines for measurement and disclosure of financial information called the Generally Accepted Accounting Principles (GAAP). (1) Explain what the Stable-Monetary-Unit Assumption is (10 points) and (2) prov..

  Should renee discontinue the lawn service

Prepare a report of the differential costs and revenues if the lawn service is discontinued and should Renee discontinue the lawn service?

  Waterways begins mass-producing its special-order sprinklers

Waterways is thinking of mass-producing one of its special-order sprinklers. To do so would increase variable costs for all sprinklers by an average of $0.70 per unit. The company also estimates that this change could increase the overall number of s..

  Define compute the sum of the years digits depreciation

Assume the useful life is 20 years, the cost is $100,000, and the salvage value is $5,000

  Five equal deposits are to be made in a fund

Beginning with January 1, 2011, five equal deposits are to be made in a fund.

  What is the annual effective rate-effective interest rate

Blanton Plastics, a household plastic product manufacturer, borrowed $30 million cash on October 1, 2013, to provide working capital for year-end production. Blanton issued a four-month, 14% promissory note to L&T Bank under a prearranged short-term ..

  If company is optimistic about its china venture and

if company is optimistic about its china venture and anticipates continued investment and growth are restrictions on

  Journal entry to record accrual of these wages would include

During October, Dorinirl Corporation incurred $66,700 of direct labor costs and $9,300 of indirect labor costs. The journal entry to record the accrual of these wages would include a?

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd