What is journal entry made by stan company upon acquisition

Assignment Help Financial Accounting

Reference no: EM131258214

A. On January 1, 2016, Stan Company paid $40,000 to acquire 10% of Kyle Corporation. Stan Company has no significant influence over Kyle Corporation. What is the journal entry made by Stan Company upon acquisition?

B. Based on the information above, what is the journal entry made by Stan at December 31, 2016 if Kyle reports net income of $120,000 for 2015?

C. Based upon the information from A, what is the journal entry made by Stan upon receipt of $5,000 in dividends for 2016 from Kyle?

Reference no: EM131258214

Questions Cloud

What was applied overhead for the current job : Lynn Corporation applies manufacturing overhead to jobs on the basis of direct labor hours used. Lynn estimated 720,000 labor hours’ usage and $900,000 of manufacturing overhead cost for the year. For the job currently under consideration, Lynn estim..

Post the adjusting entry to the accounts involved, : Maple Park Senior Center has a weekly payroll of $32,500. December 31 falls on Monday, and Maple Park Senior Center will pay its employees the following Monday (January 7) for the previous full week. Assume Maple Park Senior Center has a five-day wor..

Separate statements of income and comprehensive income : Statement of Comprehensive Income, Single- and Two-Statement Approaches.Tortarella Timber Company provided the following information for the current year: Operating income amounted to $345,000. The company sold investments in bonds at a pretax loss o..

What would be the amount of each installment : On January 1, a company borrowed cash by issuing a $300,000, 5% installment note to be paid in three payments at the end of each year beginning December 31. What would be the amount of each installment? pare the journal entry for the second installme..

What is journal entry made by stan company upon acquisition : On January 1, 2016, Stan Company paid $40,000 to acquire 10% of Kyle Corporation. Stan Company has no significant influence over Kyle Corporation. What is the journal entry made by Stan Company upon acquisition? Based on the information above, what i..

Operating income will increase : Ruben intends to sell his customers a special round-trip airline ticket package. He is able to purchase the package from the airline carrier for $160 each. The round-trip tickets will be sold for $230 each and the airline intends to reimburse Ruben f..

Available in both flexible and rigid model : Marine, Inc., manufactures a product that is available in both a flexible and a rigid model. The company has made the rigid model for years; the flexible model was introduced several years ago to tap a new segment of the market. Since introduction of..

Calculate the firms roi under each cost flow assumption : Mannisto, Inc., uses the FIFO inventory cost flow assumption. In a year of rising costs and prices, the firm reported net income of $213,639 and average assets of $1,475,450. If LIFO had been used through the years, inventory values would have been $..

Differences in upstream-downstream intercompany transfers : Discuss the differences in upstream and downstream intercompany transfers. Why are they used and when are they used? What are the pros and cons of each method?

User Account

All Pages