Gant Company purchased 30 percent of the outstanding shares of Temp Company for $88,000 on January...
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Gant Company purchased 30 percent of the outstanding shares of Temp Company for $88,000 on January 1, 20X6. The following results are reported for Temp Company: Net income Dividends paid Fair value of shares held by Gant: January 1 December 31 a. Carries the investment at fair value. b. Uses the equity method. 20X6 $ 45,000 15,000 88,000 107,000 Required A Required B 20X7 $ 40,000 28,000 20X8 $ 52,000 20,000 Required: Determine the amounts reported by Gant as income from its investment in Temp for each year and the balance in Gant's investment in Temp at the end of each year assuming that Gant uses the following options in accounting for its investment in Temp: 107,000 104,000 104,000 115,000 Complete this question by entering your answers in the tabs below. Determine the amounts reported by Gant as income from its investment in Temp for each year and the balance in Gant's Required A Required B Determine the amounts reported by Gant as income from its investment in Temp for each year and the balance in Gant's investment in Temp at the end of each year assuming that Gant uses the fair value option in accounting for its investment in Temp. Income from investment Balance in investment 20X6 20X7 20X8 Required B Gant Company purchased 30 percent of the outstanding shares of Temp Company for $88,000 on January 1, 20X6. The following results are reported for Temp Company: Net income Dividends paid Fair value of shares held by Gant: January 1 December 31 a. Carries the investment at fair value. b. Uses the equity method. 20X6 $ 45,000 15,000 88,000 107,000 Required A Required B 20X7 $ 40,000 28,000 20X8 $ 52,000 20,000 Required: Determine the amounts reported by Gant as income from its investment in Temp for each year and the balance in Gant's investment in Temp at the end of each year assuming that Gant uses the following options in accounting for its investment in Temp: 107,000 104,000 104,000 115,000 Complete this question by entering your answers in the tabs below. Determine the amounts reported by Gant as income from its investment in Temp for each year and the balance in Gant's Required A Required B Determine the amounts reported by Gant as income from its investment in Temp for each year and the balance in Gant's investment in Temp at the end of each year assuming that Gant uses the fair value option in accounting for its investment in Temp. Income from investment Balance in investment 20X6 20X7 20X8 Required B
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Related Book For
Advanced Financial Accounting
ISBN: 978-0078025624
10th edition
Authors: Theodore E. Christensen, David M. Cottrell, Richard E. Baker
Posted Date:
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