Hatch Co. uses the equity method to account for investments in common stock. What accounting should be
Question:
Hatch Co. uses the equity method to account for investments in common stock. What accounting should be made for dividends received in excess of Hatch’s share of investee’s earnings subsequent to the date of investment?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 55% (9 reviews)
Dividends in excess of earn...View the full answer
Answered By
Mary Boke
As an online tutor with over seven years of experience and a PhD in Education, I have had the opportunity to work with a wide range of students from diverse backgrounds. My experience in education has allowed me to develop a deep understanding of how students learn and the various approaches that can be used to facilitate their learning. I believe in creating a positive and inclusive learning environment that encourages students to ask questions and engage with the material. I work closely with my students to understand their individual learning styles, strengths, and challenges to tailor my approach accordingly. I also place a strong emphasis on building strong relationships with my students, which fosters trust and creates a supportive learning environment. Overall, my goal as an online tutor is to help students achieve their academic goals and develop a lifelong love of learning. I believe that education is a transformative experience that has the power to change lives, and I am committed to helping my students realize their full potential.
5.00+
4+ Reviews
18+ Question Solved
Related Book For
Intermediate Accounting
ISBN: 978-0470423684
13th Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, And Terry D. Warfield
Question Posted:
Students also viewed these Accounting questions
-
The reporting treatment for investments in common stock depends on the level of ownership and the ability to influence the investee's policies. The reporting treatment may even change over time as...
-
Taft Corporation uses the equity method to account for its 25% investment in Flame, Inc., which it made on January 1, 2014. During 2014, Taft received dividends of $30,000 from Flame and recorded...
-
Mainmont Industries uses the equity method to account for its long-term equity investments from affiliates. The following information from the financial statements of Mainmont refers to an investment...
-
Find the limit L. Then use the - definition to prove that the limit is L. lim x4 x
-
Hawthorne Golf, the maker of a sought-after set of golf clubs, was formed in 2012. The selling price for each golf club set is $1,700, variable production costs are $900 per unit, fixed production...
-
Lata Inc. produces aluminum cans. Each can has a standard labor requirement of 0.04 hour. During the month of May, 500,000 cans were produced using 19,000 labor hours @ $15.50. The standard wage rate...
-
How can managers find the best way to do hybrid work and still put people first?
-
Papas Restaurant Corporation wholesales ovens and ranges to restaurants throughout the Northeast. Papas Restaurant Corporation, which had 18,000 shares of common stock outstanding, declared a 4-for-1...
-
LI ULIILI Bg capi f. Accumulated depreciation-Equipment g. Gain from settlement of lawsuit 72,300 44,700 h. Accumulated depreciation-Buildings 175,900 i. Loss from operating a discontinued segment...
-
What are some of the typical challenges for HRM in international SMEs? How do they differ from challenges for larger multinational corporations? What are the strategies that HRMs can use to meet...
-
When the equity method is applied, what disclosures should be made in the investors financial statements?
-
Elizabeth Corp. has an investment with a carrying value (equity method) on its books of $170,000 representing a 30% interest in Borg Company, which suffered a $620,000 loss this year. How should...
-
Assume that the amount of each of the following items is material to the financial statements. Classify each item as either normally recurring (NR) or extraordinary (E). a. Loss on the disposal of...
-
Consider the differential equation for lateral positioning of an airplane landing on a carrier: +9 + 31 - 41y = u In equation, y is the lateral position of the airplane and u is a correction input...
-
Consider electronic components mounted on the inner surface of a cylindrical tube. The components are cooled by air flowing through the hollow center of the tube, as well as by convection between the...
-
A polyamide A-3 flat belt is used to transmit 15 hp under light shock conditions where K = 1.25, and a factor of safety equal to or greater than 1.1 is appropriate. The pulley rotational axes are...
-
Steam enters a turbine at 6000 kPa and 600C and exits as a saturated vapor at 0.02 MPa, producing power at a rate of 2000 kW. Changes in kinetic and potential energy of the flowing fluid can be...
-
In an electron microscope, a beam of high energy electrons can knock out core electrons from atoms in the sample. The subsequent relaxation of electrons from higher energy shells to the empty orbital...
-
Split Bean Corporation is formed to own and operate Split Bean Coffee Stands. The articles of incorporation prohibit Split Bean from selling or leasing any of its property without the approval of a...
-
Suppose the government bond described in problem 1 above is held for five years and then the savings institution acquiring the bond decides to sell it at a price of $940. Can you figure out the...
-
(a) What is the average kinetic energy of a gas molecule at 20.0C (room temperature)? (b) Find the rms speed of a nitrogen molecule (N 2 ) at this temperature. Strategy for (a) The known in the...
-
Explain why cash outflows during the period for purchases and salaries are not specifically reported on a statement of cash flows prepared using the indirect method.
-
Explain why a $50,000 increase in inventory during the year must be included in computing cash flows from operating activities under both the direct and indirect methods.
-
Explain why a $50,000 increase in inventory during the year must be included in computing cash flows from operating activities under both the direct and indirect methods.
-
The process a small firm uses for manufacturing skateboards is depicted below: Forming Painting Drying Assembly Labeling Activity Forming Painting Drying Assembly Labeling Processing Time 8 2 10 4...
-
Ratgo Corp. is a wholesaler of imported products. It reported $4,500,000 in sales for fiscal year 2023, all on account. The company collected $4,450,000 in cash from customers during the year and...
-
An additional standard deduction is allowed for: Lesson 4 ASSI Best Solutions is a retail merchandiser selling computer equipment. Best uses the gross method of accounting for inventory purchases and...
Study smarter with the SolutionInn App