Assume A owns 10% of B on January 1, 2012. On July 1, 2012 A increases ownership

Fantastic news! We've Found the answer you've been seeking!

Question:

Assume A owns 10% of B on January 1, 2012. On July 1, 2012 A increases ownership to 40% by purchasing additional shares in B. The following represent the earnings and dividends of B for 2012.

1. How much equity income is recognized by A in 2012.

2. How much dividend income is recognized by A in 2012.

Related Book For answer-question

Intermediate Accounting

ISBN: 978-0470587287

14th Edition

Authors: kieso, weygandt and warfield.

See More Books

Posted Date: Feb 26, 2019 01:28 AM

See More Questions

QUESTION 6 1. For Starrite Co., beginning capital balances on January 1, 2012, are Donna Noble $18,000 and Amy Bond $16,000. During the year, drawings were Noble $7,000 and Bond $4,000. Net income...
On January 1 2012 a company buys equipment for 10 000 It has estimated residual value of 1 000 and an estimated life of 5 years Assume the company uses double declining balance depreciation Please...
6 Year 3% 5% .837 1.746 8 10 Table of Present Value Factors 12 15 20 Interest Rate .744 7% 8% 666 .630 9% .789 .677 582 .540 .502 .614 508 463 .701 557 444 .642 481 1362 .554 .377 1.258 596 .215 422...
The American Chamber of Commerce Researchers Association compiles cost-of-living indexes for selected metropolitan areas. Shown here are cost-of-living indexes for 25 different cities on five...
Mondetta Clothing prepared its annual financial statements dated December 31, 2013. The company used the FIFO inventory costing method, but it failed to apply LCM to the ending inventory. The...
Assume that the gates in Figure 4-41 are all CMOS. When the technician tests the circuit, he finds that it operates correctly except for the following conditions: 1. A = 1, B = 0, C = 0 2. A = 0, B =...
How would graphs $c$ and $d$ in Figure 3. 8 be different if the same experiment was conducted on the surface of the Moon, where the acceleration due to gravity is six times less than it is on...
BKFin.com provides banks access to sophisticated financial information and analysis systems over the Web. The company combines these tools with benchmarking data access, including e-mail and wireless...
Quality Brick Company produces bricks in two processing departments-Molding and Firing. Information relating to the company's operations in March follows: a. Raw materials used in production: Molding...
A dam is to be constructed using the cross-section shown. Assume the dam width is w = 160 ft. For water height H = 9 ft. calculate the magnitude and line of action of the vertical force of water on...
What are human resource planning and its effect? How do organizations deal with human resource management?
The dean of the school of business wants the proportion of A grades given out by his faculty members to be around 10 %. He randomly surveys 2,000 students in 50 classes and finds that of the 2,000...
A food company claims that its new product, low-fat yogurt, is 99 % fat-free. The management wants to keep the proportion of bad (not 99 % fat-free) products below 2 %. Inspectors check 500 cups of...
Assume that youre taking a part-time job in a zoo. You are called upon to inspect a new cage built to contain a ferocious lion. Do you set up the null hypothesis that the cage is safe or that the...
A new medicine was invented to treat hay fever, but the new drug was found to have unpleasant side effects. An experiment on 5,000 women and 4,000 men showed that 100 women and 60 men suffered side...
A production manager is interested in the number of defects in batches derived from different production processes. He examines a random sample drawn from each process and records the following data:...
For what are Adjustments used? Group of answer choices To correct errors made in batches before they are posted. All of the above To correct errors made in posted batches. To correct accounting...
The unadjusted trial balance of Secretarial Services is as follows: SECRETARIAL SERVICES Unadjusted Trial Balance as at 31 December 2017 Account Debit Credit Cash at bank Office supplies Prepaid...
HONDA MOTOR COMPANY is a manufacturer of automobiles. It offers various options for consumers such as its Honda Civic for first time buyers, more expensive Honda SUV's for families, and high-end...
Generally accepted accounting principles usually require the use of accrual accounting to fairly present income. If the cash receipts and disbursements method of accounting will clearly reflect...
Keeton Company sponsors a defined benefit pension plan for its 600 employees. The companys actuary provided the following information about the plan. The average remaining service life per employee...
Mueller Ltd., a local retailing concern in the Bronx, N.Y., has decided to change from the conventional retail inventory method to the LIFO retail method starting on January 1, 2013. The company...
(a) Graph the binomial probability distribution with n = 10 and p = 0.2. Comment on the shape of the distribution. (b) Graph the binomial probability distribution with n = 10 and p = 0.5. Comment on...
Assuming = 5, compute (a) P(5) (b) P(X < 5) (c) P(X 5) (d) P(5 X 7) The random variable X follows a Poisson process with the given mean.
According to CTIA, 41% of all U.S. households are wireless-only households. In a simple random sample of 300 households, determine the mean and standard deviation number of wireless-only households....

Assume A owns 10% of B on January 1, 2012. On July 1, 2012 A increases ownership

Question:

January 1 - June 30 July 1 - December 31 Income 50,000 70,000 Dividends 30,000 40,000 January 1 - June 30 July 1 - December 31 Income 50,000 70,000 Dividends 30,000 40,000

Expert Answer:

1 Equity Income to be recognized by A in 2012 In... View the full answer

Intermediate Accounting

Students also viewed these accounting questions