= On 1/1/X4, Phillip invested $1,100,000 in Sleeper's ordinary shares (35% owned). Sleeper reported: Assets $3,500,000...
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= On 1/1/X4, Phillip invested $1,100,000 in Sleeper's ordinary shares (35% owned). Sleeper reported: Assets $3,500,000 Liabilities 600,000 The book value of Sleeper's net assets approximated market value except for the following assets: Inventory $20,000 overstated, Equipment (1/1/X2 purchased). $50,000 understated,  Trademark $70,000 understated For 20X4, Sleeper earned $90,000, declared cash dividends of $60,000, and paid dividends of $40,000. Sleeper's inventory always take perpetual, FIFO and Equipment useful life 6 years, straight line depreciation and no salvage value. For 20X5, Sleeper earned 100,000. () What amounts does Phillip report for 20X4? (Give calculating Process) Investment income Investment in Sleeper at yearend Retained earnings increase (decrease) Goodwill Recognized Cost Equity (=) Calculate and prepare Journal Entries if Philip sold 10% of Sleeper's stocks in $200,000 on April 1,2025 (Equity Method and Assume Sleeper's earning is evenly). = On 1/1/X4, Phillip invested $1,100,000 in Sleeper's ordinary shares (35% owned). Sleeper reported: Assets $3,500,000 Liabilities 600,000 The book value of Sleeper's net assets approximated market value except for the following assets: Inventory $20,000 overstated, Equipment (1/1/X2 purchased). $50,000 understated,  Trademark $70,000 understated For 20X4, Sleeper earned $90,000, declared cash dividends of $60,000, and paid dividends of $40,000. Sleeper's inventory always take perpetual, FIFO and Equipment useful life 6 years, straight line depreciation and no salvage value. For 20X5, Sleeper earned 100,000. () What amounts does Phillip report for 20X4? (Give calculating Process) Investment income Investment in Sleeper at yearend Retained earnings increase (decrease) Goodwill Recognized Cost Equity (=) Calculate and prepare Journal Entries if Philip sold 10% of Sleeper's stocks in $200,000 on April 1,2025 (Equity Method and Assume Sleeper's earning is evenly).
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Part 1 Amounts Phillip reports for 20X4 Investment Income Phillips share of Sleepers earnings for 20X4 Cost Initial investment cost plus Phillips shar... View the full answer
Related Book For
Intermediate Accounting
ISBN: 9780077400163
6th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
Posted Date:
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