On 1/1/19, Minion Company purchased 30% of Banana Company's common stock for $150,000. Banana's book value...

  

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On 1/1/19, Minion Company purchased 30% of Banana Company's common stock for $150,000. Banana's book value of equity at that date consisted of $100,000 common stock and $400,000 retained earnings. During 2019, Banana reported income of $80,000 and paid dividends of $30,000. The total fair value of Banana's stock on 12/31/19 is $575,000. Also during 2019, Banana sold inventory to Minion for $100,000. Banana's price to Minion is based on 35% on cost mark up. Minion has $25,000 of this inventory on hand at 12/31/19. Assuming that Minion is an important customer to Banana and that its ownership percentage allows membership on Banana's board of directors, answer the following questions (use the $XXX,XXX) format. Round to the nearest dollar. The total asset amount related to the Investment in Banana on Minion's 12/31/2019 balance sheet is The Banana investment increased Minion's retained earnings at 12/31/19 by In 2020, Minion sold all of the remaining inventory from the Banana purchase. No additional purchases occurred in 2020. If Banana reported income of $90,000 in 2020, what is Minion's investment income for 2020? On 1/1/19, Major Company purchased 10% of Minor Company's common stock for $50,000. Minor's book value of equity at that date consisted of $100,000 common stock and $250,000 retained earnings. On 1/1/19, any difference between the fair value and book value of equity of Minor's stock is attributable to land, $100,000 and the rest of the difference to equipment. The equipment has a 5 year remaining life at 1/1/19. During 2019, Minor reported income of $80,000 and paid dividends of $30,000. The total fair value of Minor's stock on 12/31/19 is $575,000. Assuming that Major is investing in Minor because it has excess cash and thinks Minor stock price prospects are good, answer the following questions (use the $XXX,XXX) format. The investment will be sold within a month after year-end. Round to the nearest dollar. The total asset amount related to the Investment in Minor on Majors 12/31/2019 balance sheet is The Minor investment increased Major's retained earnings at 12/31/19 by On 1/1/19, Minion Company purchased 30% of Banana Company's common stock for $150,000. Banana's book value of equity at that date consisted of $100,000 common stock and $400,000 retained earnings. During 2019, Banana reported income of $80,000 and paid dividends of $30,000. The total fair value of Banana's stock on 12/31/19 is $575,000. Also during 2019, Banana sold inventory to Minion for $100,000. Banana's price to Minion is based on 35% on cost mark up. Minion has $25,000 of this inventory on hand at 12/31/19. Assuming that Minion is an important customer to Banana and that its ownership percentage allows membership on Banana's board of directors, answer the following questions (use the $XXX,XXX) format. Round to the nearest dollar. The total asset amount related to the Investment in Banana on Minion's 12/31/2019 balance sheet is The Banana investment increased Minion's retained earnings at 12/31/19 by In 2020, Minion sold all of the remaining inventory from the Banana purchase. No additional purchases occurred in 2020. If Banana reported income of $90,000 in 2020, what is Minion's investment income for 2020? On 1/1/19, Major Company purchased 10% of Minor Company's common stock for $50,000. Minor's book value of equity at that date consisted of $100,000 common stock and $250,000 retained earnings. On 1/1/19, any difference between the fair value and book value of equity of Minor's stock is attributable to land, $100,000 and the rest of the difference to equipment. The equipment has a 5 year remaining life at 1/1/19. During 2019, Minor reported income of $80,000 and paid dividends of $30,000. The total fair value of Minor's stock on 12/31/19 is $575,000. Assuming that Major is investing in Minor because it has excess cash and thinks Minor stock price prospects are good, answer the following questions (use the $XXX,XXX) format. The investment will be sold within a month after year-end. Round to the nearest dollar. The total asset amount related to the Investment in Minor on Majors 12/31/2019 balance sheet is The Minor investment increased Major's retained earnings at 12/31/19 by

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The total asset amount related to the Investment in Banana on Minions 123120... View the full answer