Under the equity method, the investment account is adjusted for the inves tor's share of post-acquisition earnings
Question:
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 64% (17 reviews)
What this statement means is that in addition to recording the investors share of net inc...View the full answer
Answered By
JAPHETH KOGEI
Hi there. I'm here to assist you to score the highest marks on your assignments and homework. My areas of specialisation are:
Auditing, Financial Accounting, Macroeconomics, Monetary-economics, Business-administration, Advanced-accounting, Corporate Finance, Professional-accounting-ethics, Corporate governance, Financial-risk-analysis, Financial-budgeting, Corporate-social-responsibility, Statistics, Business management, logic, Critical thinking,
So, I look forward to helping you solve your academic problem.
I enjoy teaching and tutoring university and high school students. During my free time, I also read books on motivation, leadership, comedy, emotional intelligence, critical thinking, nature, human nature, innovation, persuasion, performance, negotiations, goals, power, time management, wealth, debates, sales, and finance. Additionally, I am a panellist on an FM radio program on Sunday mornings where we discuss current affairs.
I travel three times a year either to the USA, Europe and around Africa.
As a university student in the USA, I enjoyed interacting with people from different cultures and ethnic groups. Together with friends, we travelled widely in the USA and in Europe (UK, France, Denmark, Germany, Turkey, etc).
So, I look forward to tutoring you. I believe that it will be exciting to meet them.
3.00+
2+ Reviews
10+ Question Solved
Related Book For
Modern Advanced Accounting In Canada
ISBN: 9781259066481
7th Edition
Authors: Hilton Murray, Herauf Darrell
Question Posted:
Students also viewed these Accounting questions
-
Under the equity method, when the company's share of cumulative losses equals its investment, and the company has no obligation to fund such additional losses, which of the following statements is...
-
Assume the equity method Equity Investment account relating to a subsidiary has a reported balance of $2,950,000, including $150,000 of Goodwill. The fair value of the subsidiary is $2,750,000. The...
-
Assume that the equity method Equity Investment account relating to a subsidiary has a reported balance of $6,250,000, including a carrying value of goodwill of $619,000. You currently value that...
-
One of the most common reasons why projects undergo scope changes is: A. Poor work breakdown structure B. Poorly defined statement of work C. Lack of resources D. Lack of funding
-
One consolidated group member lends money to another member of its group. Both corporations use the accrual method of accounting. Explain how the lending group member reports its interest income and...
-
In a "Rotor-ride" at a carnival, people rotate in a vertical cylindrically walled "room." (See Fig. 5-47.) If the room radius is 5.5 m, and the rotation frequency 0.50 revolutions per second when the...
-
Correlation and Causation What is meant by the statement that correlation does not imply causation?
-
1. Describe the importance of inventory management as it relates to the Farmers Restaurant. 2. What ordering system would be best for this situation? 3. Given the following information, provide an...
-
Identify and describe the purpose of the existing laws relevant the diamond industry, both at national and international levels, and explain what mechanisms Blue Nile Inc., should use to enforce...
-
On average, Diya concedes one penalty in every six hockey matches that she plays. Find the probability that Diya next concedes a penalty: a. In the eighth match that she plays b. After the fourth...
-
"An acquisition differential allocated to revalue the land of a subsidiary on acquisition date will always appear on subsequent consolidated balance sheets." Do you agree? Explain.
-
At the end of the year, the parent's investment account had an equity method balance of $120,000. At this time, its 75%-owned subsidiary had shareholders' equity totaling $125,000. How much was the...
-
Consider a $ 100 million pool of conventional mortgages paying 8 percent interest. Suppose that you create one PO and one IO for this entire pool. Describe what a PO and IO would look like for this...
-
Stock A has an 8.5% expected rate of return and a beta coefficient of 0.85. Stock B has a 10.5% expected rate of return and a beta coefficient of 1.05. The risk-free rate is 4.5% and the market risk...
-
You plan to buy a house in 18 months. The cost of the house at that time will be $300,000 . How much do you have to invest each month, starting next month, for 12 months to exactly pay for the house...
-
First National Bank offers two-year CDs at 9.15% compounded daily, and citywide savings offers two-year CDs at 9.16% compounded quarterly. Compute the annual yield for each institution. (Round your...
-
A company provides the following budgeted and actual results for the month of December: Budgeted Fixed Selling Costs (based on a sales volume of 10,000 units): $101,589 Actual Fixed Selling Costs...
-
The function f is defined as f(x) = x 2 2x + 2, x. a. Write f(x) in the form (x + p) 2 + q, where p and q are constants to be found. b. Hence, or otherwise, explain why f(x) > 0 for all values of x,...
-
Tiger, Inc. signed a lease for equipment on July 1, 2007.The lease is for 10 years (the useful life of the asset).The first of 10 equal annual payments of $500,000 was made on July 1, 2007.The...
-
1. Workpaper entries normally: a. Are posted to the general ledger accounts of one or more of the affiliates b. Are posted to the general ledger accounts only when the financial statement approach is...
-
Pan Corporation purchased 80 percent of the outstanding voting common stock of Sal Corporation on January 2, 2011, for $600,000 cash. Sal's balance sheets on this date and on December 31, 2011, are...
-
1. Peg Corporation owns a 70 percent interest in San Corporation, acquired several years ago at book value. On December 31, 2011, San mailed a check for $20,000 to Peg in part payment of a $40,000...
-
\ table [ [ \ table [ [ Phenomenal Fun ] , [ Balance Sheet ] , [ As of July 1 , 2 0 2 2 ] ] , ] , [ Assets , $ 2 3 8 , 0 0 0 , ] , [ Cash , 6 8 , 0 0 0 , ] , [ Food and Merchandise Inventory, 1 3 5 ,...
-
You are married and have just declared $ 1 9 , 2 7 7 . 2 5 in federal income tax in 2 0 1 8 . The solution to the equation 1 9 , 2 7 7 . 2 5 = 0 . 3 ( x - 1 8 4 4 5 ) + 1 2 3 0 . 7 5 represents your...
-
A department has total conversion costs of $153,300 and total materials costs of $250,025. If the department has 36,500 equivalent units of production for materials and 73,000 equivalent units of...
Study smarter with the SolutionInn App