Select one: A. $200,000 B. $140,000 C. $80,000 D. $40,000 Woodie Ltd, a parent company, has a
Fantastic news! We've Found the answer you've been seeking!
Question:
Select one:
A. $200,000
B. $140,000
C. $80,000
D. $40,000
Transcribed Image Text:
Woodie Ltd, a parent company, has a 20% investment (and hence significant influence) in Miles Ltd for 10 years. Woodie s accountant has mislaid the file of equity accounting memoranda and has asked you to reconstruct the information from the following data: • The investment cost is $685 000. • Miles made a $200 000 dividend appropriation in the final quarter of the current year. The dividend was from current year profit. The increase in Miles reserves in the current year is due to an appropriation of profit. There is no need to make fair value adjustments to amounts reported by Miles. There are no intercompany transactions. Equities of Miles, under the cost basis, are at: Paid-up capital General reserve Retained profits Acquisition date S 1 300 000 800 000 Start of current year End of current year S S 1 300 000 1 000 000 600 000 1 300 000 1 300 000 1 000 000 In preparing memoranda journal entries to convert from the cost basis to the equity method of accounting for the current year, how much is the net increase for the account of Revenue from associate? Woodie Ltd, a parent company, has a 20% investment (and hence significant influence) in Miles Ltd for 10 years. Woodie s accountant has mislaid the file of equity accounting memoranda and has asked you to reconstruct the information from the following data: • The investment cost is $685 000. • Miles made a $200 000 dividend appropriation in the final quarter of the current year. The dividend was from current year profit. The increase in Miles reserves in the current year is due to an appropriation of profit. There is no need to make fair value adjustments to amounts reported by Miles. There are no intercompany transactions. Equities of Miles, under the cost basis, are at: Paid-up capital General reserve Retained profits Acquisition date S 1 300 000 800 000 Start of current year End of current year S S 1 300 000 1 000 000 600 000 1 300 000 1 300 000 1 000 000 In preparing memoranda journal entries to convert from the cost basis to the equity method of accounting for the current year, how much is the net increase for the account of Revenue from associate?
Expert Answer:
Related Book For
Posted Date:
Students also viewed these accounting questions
-
C owns 60 shares and D owns 40 shares of Z Corporation, representing all of Zs outstanding shares. C and D are father and son. Z redeems all of Cs stocks. C stays on as Zs president with compensation...
-
A small coil C with N = 200 turns is mounted on one end of a balance beam and introduced between the poles of an electromagnet as shown in Fig. 3.70. The cross-sectional area of the coil is S = 1.0...
-
A company wants to study the satisfaction level of all their customers. They decided to reach out to all of their customers with five survey questions. This is an example of O Descriptive...
-
1) Write a generic function to integrate y(x)dx with the following format function I integrator (x, y, method) where x is a vector and y is a matrix whose columns y(:,j) are vectors of the same...
-
A Harris survey asked, in part, what the most important reason was that people give for not using a wireless phone exclusively. The responses were: (1) Like the safety of traditional phone, (2) Need...
-
Quality Chemical manufactures three chemicals for industrial and retail customers. The largest volume product, S-210, is a sweetener used in the preparation of processed foods; the second, H-35, is...
-
Draw before and after energy bars for the collision shown in Figure \(6.8 a\) and \(6.8 b\). Data from Figure 6.8 (a) Earth reference frame (b) Reference frame M (DEM == 0.20 m/s) = 0 FM2 ME NIZ E...
-
Journalize the following transactions for Dewey, Inc. (a) Incurred direct labor costs of $24,000 for 3,000 hours. The standard labor cost was $25,500. (b) Assigned 3,000 direct labor hours costing...
-
How can we formulate actionable strategies that leverage predictive analytics to anticipate market trends and consumer behavior shifts ?
-
Because Natalie has had such a successful first few months, she is considering other opportunities to develop her business. One opportunity is the sale of fine European juicing machines. The owner of...
-
A payoff a. is always measured in cost. b. exists for each state of nature. c. exists for each pair of decision alternative and state of nature. d. is always measured in profit.
-
Poly-methyl methacrylate (PMMA), in an implantable device, has a molar mass of 3.42x105g mol-1. Assume that carbon-carbon distance in the backbone is 0.154 nm, the angle betweenbonds is 109.5, ratio...
-
There are five major transportation modes - truck, rail, water, air, and pipeline. Considering transportation is the most expensive logistics activity, it is important to consider each mode when...
-
What are the steps involved in the job analysis process? Briefly discuss the methods available for collecting job analysis information.
-
A gun fires a ping pong ball straight up at an initial velocity of voy and it rises to a height of 2.1m. Calculate Voy. The gun now fires the ball at an angle of 30. If it lands at the same height it...
-
There are three basic types of crop land leases: a crop share lease, a cash lease and a flexible cash lease Which type of leasing arrangement would you prefer if you were a landlord? Which type of...
-
Conciseness means avoiding unnecessary words in your writing. Reducing the number of words you use can make your writing stronger. Often it helps the reader focus on the message you are trying to...
-
1. Firms may hold financial assets to earn returns. How the firm would classify financial assets? What treatment will such financial assets get in the financial statements in accordance with US GAAP...
-
Write the cell notation for a voltaic cell with the following half-reactions. Al(s) Al3+ (aq) + 3e 2H + (aq) + 2e H2(g)
-
Starting from the ideal gas law, prove that the volume of a mole of gas is inversely proportional to the pressure at constant temperature (Boyles law).
-
Using standard electrode potentials, calculate Eocell at 25oC for the following cell. Zn(s) |Zn2+(aq)||Cu2+(aq) |Cu(s
-
Reconsider Problem 18. Management has decided that the $5 million raised through stock should be split between common stock and preferred stock. Common stock will be used to raise $3,000,000 and...
-
Repeat Problem 23 assuming that the stock price is growing at 3 percent per year. Data from problem 23 Lahoma Enterprises, Inc., needs $15 million to finance a major product development. The project...
-
Repeat Problem 23 assuming the stock offering will be preferred stock rather than common stock. The preferred stock will sell for $120/share, pay a $9 annual dividend, and have a cost of selling of...
Study smarter with the SolutionInn App