Pacer Company created Spur, Inc. four years ago and has been using the cost method to...
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Pacer Company created Spur, Inc. four years ago and has been using the cost method to account for this investment. The following account balances are found in each firm's financial statements of the current year, 2020: Accounts Retained earnings, 1/1/20 Net income, 2020 Dividends declared, 2020 Retained earnings, 12/31/20 Common stock and APIC, 12/31/20 Pacer $650,000 290,000* 160,000 780,000 840,000 Spur $275,000 2. Pacer's "Investment in Spur" at 12/31/20 (in Pacer's balance sheet): 165,000 90,000 350,000 568,000 (*The term "net income" means Pacer's investment income has been included.) Required: Provide the following figures: 1. Consolidated net income of Pacer and Spur, 2020: Pacer Company created Spur, Inc. four years ago and has been using the cost method to account for this investment. The following account balances are found in each firm's financial statements of the current year, 2020: Accounts Retained earnings, 1/1/20 Net income, 2020 Dividends declared, 2020 Retained earnings, 12/31/20 Common stock and APIC, 12/31/20 Pacer $650,000 290,000* 160,000 780,000 840,000 Spur $275,000 2. Pacer's "Investment in Spur" at 12/31/20 (in Pacer's balance sheet): 165,000 90,000 350,000 568,000 (*The term "net income" means Pacer's investment income has been included.) Required: Provide the following figures: 1. Consolidated net income of Pacer and Spur, 2020:
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Related Book For
Modern Advanced Accounting in Canada
ISBN: 978-1259087554
7th edition
Authors: Hilton Murray, Herauf Darrell
Posted Date:
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