Question: I need help with A,B,C, and D please. please use excel if possible. Thank You! 13 Change in Reporting for Equity Investment Stream Company buys
13 Change in Reporting for Equity Investment Stream Company buys 10 percent of Topsia Company's stock for $1.6 million in cash on January 1, 2023, and reports the investment as having no significant influence. Fair value of the investment on December 31, 2023, is $1.8 million. On January 1, 2024, Stream acquires another 30 percent of Topsia's stock for $6 million in cash, and changes to the equity method of reporting for this investment. Fair value of the 40 percent interest on December 31,2024 , is $10 million. Topsia reported the following amounts for the years 2023 and 2024: Topsia reported no other comprehensive income, and any basis difference is attributed to goodwill. Stream and Topsia have no intercompany transactions. Required Calculate the balances appearing in the following accounts of Stream Company for 2023 and 2024: a. Investment in Topsia, reported on Stream's December 31, 2023, and December 31,2024 , balance sheets. b. Dividend income reported on Stream's income statements, 2023 and 2024. c. Unrealized gain on investment in Topsia, reported on Stream's 2023 and 2024 income statements. d. Equity in net income of Topsia, reported on Stream's 2023 and 2024 income statements
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
