On January 1, 2018, Western Motors paid $450 million for a 40% investment in Yaza Motors. Yaza
Question:
On January 1, 2018, Western Motors paid $450 million for a 40% investment in Yaza Motors. Yaza earned net income of $65 million and declared and paid cash dividends of $45 million during 2018.
1. What method should Western Motors use to account for the investment in Yaza? Give your reason.
2. Journalize these three transactions on the books of Western Motors. Show all amounts in millions of dollars (rounded to the closest million), and include an explanation for each entry.
3. Post to the Equity-Method Investment T-account. What is its balance after all the transactions are posted?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 80% (5 reviews)
Req 1 Equity method is appropriate because the investor We...View the full answer
Answered By
Ashington Waweru
I am a lecturer, research writer and also a qualified financial analyst and accountant. I am qualified and articulate in many disciplines including English, Accounting, Finance, Quantitative spreadsheet analysis, Economics, and Statistics. I am an expert with sixteen years of experience in online industry-related work. I have a master's in business administration and a bachelor’s degree in education, accounting, and economics options.
I am a writer and proofreading expert with sixteen years of experience in online writing, proofreading, and text editing. I have vast knowledge and experience in writing techniques and styles such as APA, ASA, MLA, Chicago, Turabian, IEEE, and many others.
I am also an online blogger and research writer with sixteen years of writing and proofreading articles and reports. I have written many scripts and articles for blogs, and I also specialize in search engine
I have sixteen years of experience in Excel data entry, Excel data analysis, R-studio quantitative analysis, SPSS quantitative analysis, research writing, and proofreading articles and reports. I will deliver the highest quality online and offline Excel, R, SPSS, and other spreadsheet solutions within your operational deadlines. I have also compiled many original Excel quantitative and text spreadsheets which solve client’s problems in my research writing career.
I have extensive enterprise resource planning accounting, financial modeling, financial reporting, and company analysis: customer relationship management, enterprise resource planning, financial accounting projects, and corporate finance.
I am articulate in psychology, engineering, nursing, counseling, project management, accounting, finance, quantitative spreadsheet analysis, statistical and economic analysis, among many other industry fields and academic disciplines. I work to solve problems and provide accurate and credible solutions and research reports in all industries in the global economy.
I have taught and conducted masters and Ph.D. thesis research for specialists in Quantitative finance, Financial Accounting, Actuarial science, Macroeconomics, Microeconomics, Risk Management, Managerial Economics, Engineering Economics, Financial economics, Taxation and many other disciplines including water engineering, psychology, e-commerce, mechanical engineering, leadership and many others.
I have developed many courses on online websites like Teachable and Thinkific. I also developed an accounting reporting automation software project for Utafiti sacco located at ILRI Uthiru Kenya when I was working there in year 2001.
I am a mature, self-motivated worker who delivers high-quality, on-time reports which solve client’s problems accurately.
I have written many academic and professional industry research papers and tutored many clients from college to university undergraduate, master's and Ph.D. students, and corporate professionals. I anticipate your hiring me.
I know I will deliver the highest quality work you will find anywhere to award me your project work. Please note that I am looking for a long-term work relationship with you. I look forward to you delivering the best service to you.
3.00+
2+ Reviews
10+ Question Solved
Related Book For
Financial Accounting
ISBN: 978-0134725987
12th edition
Authors: C. William Thomas, Wendy M. Tietz, Walter T. Harrison Jr.
Question Posted:
Students also viewed these Business questions
-
Use the data given in E-S-8. On January 1, 2019, Western Motors sold half of its investment in Yaza Motors. The sale price was $135 million. Calculate Western Motors gain or loss on the sale. Data...
-
Use the Coleman Motors data from P11-57A. Requirements 1. Prepare Colemans income statement for the year ended December 31, 2018. Use the single-step format, with all revenues listed together and all...
-
The following events apply to Milligan Manufacturing Company. Assume that all transactions are cash transactions unless otherwise indicated. Transactions for the 2017 Accounting Period 1. The company...
-
In Chapter 12 (p. 432), we described a study reporting that college students who are on Facebook (or have it running in the background) while studying had lower grades than students who did not use...
-
Do you think that it is possible for a vector u in a vector space to have two different negatives? That is, is it possible to have two different vectors (- u)1 and (-u)2, both of which satisfy Axiom...
-
Real People Sporting (RPS) Co-op introduced a loyalty program in 2020. Every customer who signed up would receive 1% of their total purchases as a cheque, each February for the previous year, that...
-
If two or more firms were charging similar prices, what types of evidence would you look for to prove that this was collusion rather than mere coincidence?
-
Refer to Cornerstone Exercise 7.3. Now assume that Valron Company uses the sequential method to allocate support department costs. The support departments are ranked in order of highest cost to...
-
Use logical-mathematical reasoning to analyze and establish the amounts corresponding to each period of pension spending.Perform the Prior Service Cost amortization table. Assume that The New Era...
-
A logistics provider plans to have a new warehouse built to handle increasing demands for its services. Although the company is unsure of how much demand there will be, it must decide now on the size...
-
Use the data given in E-S-6. On May 21, 2019, Athens Company sold its investment in Technomite stock for $28 per share. 1. Journalize the sale. No explanation is required. 2. How does the gain or...
-
On January 1, 2018, Downtown Industries purchased $8,000 of 4% JMK bonds at a price of 100 (par). Downtown intends to hold the bonds until their maturity date of January 1, 2021. The bonds pay...
-
An electric motor draws a current of 16 amp at 110 V. The output shaft delivers a torque of 10 N-m at a speed of 1500 RPM. Determine (a) The electric power transferred. (b) Shaft power. (c) The rate...
-
Using the attached files, Term.java, Polynomial.java, and PolynomialTester.java as starting points, writte a class Polynomial that stores a polynomial such as: p(x)=5x^10 + 9x^7 - x - 10 as a linked...
-
code shown below fails the JUnit Test, Can you please help java.lang.AssertionError: Expected :916368163 Actual :3045627254 public static BigInteger sevenZero(int n) Since seven is a lucky number in...
-
1- Bernard Callebaut operates a chocolate shop in Kensington. The annual demand for chocolate-covered cherries is 2,500 units. The setup cost is $15 per order. The holding cost per unit per year is...
-
A vector field flows across a surface S with function z = g(x, y), which is oriented downwards. To calculate the flux across the surface S, the normal vector for the surface is <9x, 9y, 1> <1,9x, gy...
-
Suppose you buy a stock at a price of $25 per share today. Next year you expect to be able to sell the stock at a price of $28 per share. In addition, you anticipate total dividend payments of $2 per...
-
If you asked your broker to buy you a 12% bond when the market interest rate for such bonds was 11%, would you expect to pay more or less than the face amount for the bond? Explain.
-
On October 31 Juanita Ortega, owner of Outback Guide Service, received a bank statement dated October 30. Juanita found the following: 1. The checkbook has a balance of $2,551.34. 2. The bank...
-
The 2008 Form 20-F published by Unilever, which uses IFRS, notes that during 2008 assets were writtendown by 246 million Euros to market value for damaged obsolete, and lost inventories. It also...
-
Whitney Tilson, a noted analyst, warns investors in an article in The Motley Fool that more than any other type of company, financial companies have immense discretion regarding what earnings to...
-
Enron was one of the worlds largest power companies before it went bankrupt in one of the most spectacular financial frauds in history. One aspect of the fraud involved the creation of a separate...
-
Two vectors are given by a = 3.0 +5.0 and b = 2.0 + 4.0. Find (a) a xb, (b) a. b, c) (a + b). b, and (d) the component of a along the direction of b.
-
Consider two parallel wires, each carrying an identical current I in the same direction. The moving charges create magnetic fields, and react to each other's magnetic fields, causing the wires to...
Study smarter with the SolutionInn App