On June 30, 2015, the shareholders equity of Fabinet, a foreign corporation, was 10,500,000 FC. At that
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During the last six months of 2015, Fabinet reported net income of 1,260,000 FC of which 126,000 FC was declared and paid as a dividend. At the end of 2015, Newcore tested the goodwill for impairment and recognized an impairment loss of $100,000. Additional exchange rates are as follows:
Weighted average for last six months of 2015 ..... 1 FC = $0.64
Date of dividend declaration ............ 1FC = 0.66
December 31, 2015 ................ 1 FC = 0.68
Prepare all relevant entries to record Newcore’s interest in Fabinet under the sophisticated equity method.
Goodwill
Goodwill is an important concept and terminology in accounting which means good reputation. The word goodwill is used at various places in accounting but it is recognized only at the time of a business combination. There are generally two types of... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
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Related Book For
Advanced Accounting
ISBN: 978-0538480284
11th edition
Authors: Paul M. Fischer, William J. Tayler, Rita H. Cheng
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