Reference no: EM131251102
On January 1, 2013, Pierce, Inc., purchased 12,700 shares of Marion Company for $393,700, giving Pierce 10 percent ownership of Marion. On January 1, 2014, Pierce purchased an additional 25,400 shares (20 percent) for $901,700. This latest purchase gave Pierce the ability to apply significant influence over Marion. The original 10 percent investment was categorized as an available-for-sale security. Any excess of cost over book value acquired for either investment was attributed solely to goodwill. Marion reports net income and dividends as follows. These amounts are assumed to have occurred evenly throughout these years. Dividends are declared and paid in the same period. Net income: 2013: $396,000 2014: $530,000 2015: $564,000 Cash dividends (paid quarterly): 2013: $134,000 2014: $155,500 2015: $180,500 On July 1, 2015, Pierce sells 2,540 shares of this investment for $47 per share, thus reducing its interest from 30 to 28 percent. However, the company retains the ability to significantly influence Marion. Using the equity method, what amounts appear in Pierce’s 2015 income statement?
a. what is the total income accrual (no unearned gains)
b. what is the gain or loss on sale of shares.
|
Do any items in your vertical analysis stand out
: Do any items in your vertical analysis stand out? Why or why not? - What does your vertical analysis suggest for managing the company's financial health?
|
|
What problems could arise when using open systems theory
: There have been suggestions made by people in the field that Open Systems Theory creates problems. Discuss what problems could arise when using Open Systems Theory. Given these problems, is it worth using Open Systems Theory in an organization?
|
|
What are the basic concerns with software testing
: 1. What are the basic concerns with software testing? 2. Why is a specification needed in order to do testing? 3. Why is path testing usually impractical?
|
|
Calculate the ratios for the company
: Calculate the ratios for the company selected in Milestone One and show your calculations for each indicator in an appendix.
|
|
What is the gain or loss on sale of shares
: On January 1, 2013, Pierce, Inc., purchased 12,700 shares of Marion Company for $393,700, giving Pierce 10 percent ownership of Marion. On January 1, 2014, Pierce purchased an additional 25,400 shares (20 percent) for $901,700. This latest purchase g..
|
|
What determines the magnitude of the risk premium
: Suppose that a risk-averse decision maker faces a choice of two lotteries, 1 and 2. The lotteries have the same expected value, but Lottery 1 has a higher variance than Lottery 2. What lottery would a risk-averse decision maker prefer?
|
|
Swift 3 ios iphone app
: Using Swift 3 iOS iPhone App Create a simple application that gathers the following personal information:
|
|
Ethical leadership and ethical fellowship
: individual essays will demonstrate knowledge and ability to apply concepts of ethical leadership and followership to a variety of scenarios, appreciate the scope of ethical responsibility for leaders and followers, practice moral imagination for gen..
|
|
Design an html page for buyonline
: Web Application Development - Design an HTML page for BuyOnline (buyonline.htm) with links for Customer Registration (see register.htm in 2.2), Customer Login (see login.htm in 2.4.1), and Store Manager Login (see mlogin.htm in 2.3.1).
|