Anderson acquires 10 percent of the outstanding voting shares of Barringer on January 1, 2011, for $96,620
Question:
Barringer reported $260,700 of net income during 2012 and $358700 in 2013. Dividends of $119,000 are paid in each of these years. Anderson uses the equity method.
A) On comparative income statements issued in 2013 by Anderson for 2011 and 2012, what amounts of income would be reported in connection with the companys investment in Barringer?
Equity income 2011
Equity income 2012
B) If Anderson sells its entire investment in Barringer on January 1, 2014, for $475,730 cash, what is the impact on Anderson's income?
C) Assume that Anderson sells inventory to Barringer during 2012 and 2013 as follows:
What amount of equity income should Anderson recognize for the year2013?
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Related Book For
Fundamentals of Advanced Accounting
ISBN: 978-0077667061
5th edition
Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupnik
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