Bass Company owns 25% of Petit Company. For the current year, Petit reports net income of $150,000 and declares and pays a $60,000 cash dividend. Record Bass’s equity in Petit’s net income and the receipt of dividends from Petit.
Answer to relevant QuestionsCost and fair value data for the trading securities of Dobler Company at December 31, 2014, are $62,000 and $59,600, respectively. Prepare the adjusting entry to record the securities at fair value.On January 1, Lambert Corporation purchased a 25% equity investment in Dougherty Corporation for $150,000. At December 31, Dougherty declared and paid a $80,000 cash dividend and reported net income of ...Farwell Company acquired 30% of the outstanding common stock of Ingold Inc. on January 1, 2014, by paying $1,800,000 for 60,000 shares. Ingold declared and paid a $0.50 per share cash dividend on June 30 and again on ...George Orear, a mid-level product manager for Theresa’s Shoes, thinks his company should switch from LIFO to FIFO. He says, “My bonus is based on net income. If we switch it will increase net income and increase my ...In its first month of operation, Kuhlman Company purchased 100 units of inventory for $6, then 200 units for $7, and finally 140 units for $8. At the end of the month, 180 units remained. Compute the amount of phantom profit ...
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