What income would chevron recognize from affiliate companies

Assignment Help Accounting Basics

Reference no: EM131822437

Question: Effect of Transactions Under the Equity Method Chevron Corporation engages in fully integrated petroleum operations, chemicals operations, mining operations, power generation, and energy services. It accounts for its investments in affiliated companies by the equity method. The following balances were reported (in millions)

December 31

2011 2010

Investments in equity affiliates $22,150 $20,816

Chevron's equity in the earnings of affiliated companies in 2011 was $7,363 million. Assume that there was no additional investment in affiliates during 2011. Chevron had pretax income in 2011 of $47,634 million.

1. How much did Chevron receive in dividends from its equity affiliates in 2011?

2. What pretax income would Chevron have reported if it did not have an interest in the affiliated companies? What proportion of Chevron's pretax income came from the affiliated companies?

3. Suppose that, instead of the number you calculated in number 1, Chevron received $3,000 million in dividends from its affiliated companies in 2011. What income would Chevron recognize from its affiliated companies in 2011?

Reference no: EM131822437

Questions Cloud

Why does the en need to know the purpose of blood collection : Why does the EN need to know the purpose of blood collection? List six (6) different professions that may be part of a multi-disciplinary team

Market value and equity method for intercorporate investment : Intercorporate Investments and Ethics Bud Conn and Salvador Cruz were best friends at a small college, and they fought side-by-side in Iraq.

How does cf contribute to malabsorption of nutrients : Why does Peter need a high calorie diet and pancreatic enzyme supplementation. How does CF contribute to malabsorption of nutrients in a teenager

Describe ethical considerations in the research process : Analyze research methodologies that support specific research topics. Describe ethical considerations in the research process.

What income would chevron recognize from affiliate companies : Suppose that, instead of the number you calculated in number 1, Chevron received $3,000 million in dividends from its affiliated companies in 2011.

How would you cultivate a culture of care for the patient : An effective staffing model should take into account resources such as support personnel, How would you cultivate a culture of care for the patient

What risks are there for carol unborn baby : What risks are there for Carol's unborn baby? Describe the nursing care required for women in labor with a prolonged pregnancy

Depression or a depressive illness : Does it appear that the proportion of people in that town with depression or a depressive illness is lower than general adult American population?

What is toyota maximum percentage ownership of companies : Noncontrolling Interests Toyota Motor Company has 507 consolidated subsidiaries both inside and outside of Japan. It owns 100% of many of these companies.

User Account

All Pages