Question: On January 1 2015 Alamar Corporation acquired a 40 percent
On January 1, 2015, Alamar Corporation acquired a 40 percent interest in Burks, Inc., for $210,000. On that date, Burks’s balance sheet disclosed net assets with both a fair and book value of $360,000. During 2015, Burks reported net income of $80,000 and declared and paid cash dividends of $25,000. Alamar sold inventory costing $30,000 to Burks during 2015 for $40,000. Burks used all of this merchandise in its operations during 2015. Prepare all of Alamar’s 2015 journal entries to apply the equity method to this investment.
Relevant QuestionsAustin, Inc., acquired 10 percent of McKenzie Corporation on January 1, 2014, for $210,000 although McKenzie’s book value on that date was $1,700,000. McKenzie held land that was undervalued by $100,000 on its accounting ...Anderson acquires 10 percent of the outstanding voting shares of Barringer on January 1, 2013, for $92,000 and categorizes the investment as an available-for-sale security. An additional 20 percent of the stock is purchased ...Access The Coca-Cola Company’s SEC 10-K filing at www.coca-cola.com and address the following:1. What companies does Coca-Cola describe as significant equity method investments? How do these investments help Coca-Cola? 2. ...On its acquisition-date consolidated balance sheet, what amount should TruData report as retained earnings as of July 1?a. $130,000.b. $210,000.c. $260,000.d. $510,000.On July 1, TruData Company issues 10,000 shares of its ...In a pre-2009 business combination, Acme Company acquired all of Brem Company’s assets and liabilities for cash. After the combination Acme formally dissolved Brem. At the acquisition date, the following book and fair ...
Post your question