Evan Company reports net income of $182,000 each year and declares an annual cash dividend of...
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Evan Company reports net income of $182,000 each year and declares an annual cash dividend of $90,000. The company holds net assets of $1,500,000 on January 1, 2017. On that date, Shalina purchases 40 percent of Evan's outstanding common stock for $735,000, which gives it the ability to significantly influence Evan. At the purchase date, the excess of Shalina's cost over its proportionate share of Evan's book value was assigned to goodwill. On December 31, 2019, what is the Investment in Evan Company balance (equity method) in Shalina's financial records? Multiple Choice O O O $917,400. $953.400. $845,400. $880.600. Evan Company reports net income of $182,000 each year and declares an annual cash dividend of $90,000. The company holds net assets of $1,500,000 on January 1, 2017. On that date, Shalina purchases 40 percent of Evan's outstanding common stock for $735,000, which gives it the ability to significantly influence Evan. At the purchase date, the excess of Shalina's cost over its proportionate share of Evan's book value was assigned to goodwill. On December 31, 2019, what is the Investment in Evan Company balance (equity method) in Shalina's financial records? Multiple Choice O O O $917,400. $953.400. $845,400. $880.600.
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Under Equity method any cash dividends paid by the investee company is reduced from the investmen... View the full answer
Related Book For
Advanced Accounting
ISBN: 9781260247824
14th Edition
Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupnik
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