On January 1, 2016 Baker Company purchased 300 of the 900 shares of Able Company for...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
On January 1, 2016 Baker Company purchased 300 of the 900 shares of Able Company for $30,000 On January 1, the book value of Able Company's assets were $90,000. All of the assets of Able had a book value equal to fair value except a truck with a book value of $14,000 and a book value of $20000. This truck has a 5 year life with no salvage and Able uses straight line depreciation REQUIRED: July 1st 2016 Able declared and paid a $2 per share dividend December 31, 2016 Able reported income of $24,000. Able's stock is selling at $98 per share 1-Jul-17 Able declared and paid a $1 per share dividend December 31, 2017 Able reported a loss of $1500. Able's stock is selling at $94 per share 1-Jan-18 Baker sold 200 shares of Able at $95 per share. Baker no longer has significant influence over Able 1-Jul-18 Able declares and pays a $2 per share dividend December 31, 2018 Able reported income of $15,000 and its stock is selling for $96 per share 1-Jul-19 Able declares and pays a $2 per share dividend October 1, 2019 Baker sold the Able stock at $99 per share 1) MAKE THE JOURNAL ENTRIES BAKER MAKES ON ITS INVESTMENT IN ABLE FOR 2016 TO 2019 2) WHAT IS THE BALANCE IN 'INVESTMENT IN ABLE' ON BAKER'S BOOKS DEC. 31 2016, 2017, 2018? 3) WHAT IS THE INCOME STATEMENT EFFECT OF THE INVESTMENT IN ABLE ON BAKER'S BOOKS 2016,2017,2018, 2019 On January 1, 2016 Baker Company purchased 300 of the 900 shares of Able Company for $30,000 On January 1, the book value of Able Company's assets were $90,000. All of the assets of Able had a book value equal to fair value except a truck with a book value of $14,000 and a book value of $20000. This truck has a 5 year life with no salvage and Able uses straight line depreciation REQUIRED: July 1st 2016 Able declared and paid a $2 per share dividend December 31, 2016 Able reported income of $24,000. Able's stock is selling at $98 per share 1-Jul-17 Able declared and paid a $1 per share dividend December 31, 2017 Able reported a loss of $1500. Able's stock is selling at $94 per share 1-Jan-18 Baker sold 200 shares of Able at $95 per share. Baker no longer has significant influence over Able 1-Jul-18 Able declares and pays a $2 per share dividend December 31, 2018 Able reported income of $15,000 and its stock is selling for $96 per share 1-Jul-19 Able declares and pays a $2 per share dividend October 1, 2019 Baker sold the Able stock at $99 per share 1) MAKE THE JOURNAL ENTRIES BAKER MAKES ON ITS INVESTMENT IN ABLE FOR 2016 TO 2019 2) WHAT IS THE BALANCE IN 'INVESTMENT IN ABLE' ON BAKER'S BOOKS DEC. 31 2016, 2017, 2018? 3) WHAT IS THE INCOME STATEMENT EFFECT OF THE INVESTMENT IN ABLE ON BAKER'S BOOKS 2016,2017,2018, 2019
Expert Answer:
Answer rating: 100% (QA)
1 Journal Entries for Bakers Investment in Able 20162019 2016 January 1 2016 Debit Investment in Abl... View the full answer
Related Book For
Modern Advanced Accounting In Canada
ISBN: 9781259066481
7th Edition
Authors: Hilton Murray, Herauf Darrell
Posted Date:
Students also viewed these accounting questions
-
Problem 1: Trace the following ARM program LDR X10,#8EC5 LDR X11,#7582 AND X12, X10, X11 ORR X13, X10, X11 EOR X14, X10, X11 LDR X15, #1000 LSR X16, X13, #4 ORR X16, X16, X15 //load hex value into...
-
Let Y have a density function f(y) = {y^2/3, if -1 y 2 elsewhere a) Find E(Y) b) Find V(Y) c)Find P(Y>1)
-
Use normal job-order costing to calculate the balance in the ending Work-in-Process account and the Cost of Goods Sold account on 31 December 20X3 after any necessary adjustment(s). Sweet Memories...
-
The plaintiff was partially paralyzed from a carotid artery tear that resulted from his being tackled during a high school football scrimmage. While he was on the field, his coaches removed his...
-
Rohn Corporation entered into a written contract to hire Layman for five years at a salary of $ 200,000 per year. After three years, Layman asked Rohn for a $ 25,000 per year raise under the current...
-
A typical neuron has dendrites, a cell body, and an axon. What is the function of each of these parts?
-
Bram Real Estate Corporation is being liquidated. It has one major asset, an office building, which was converted into $16.4 million cash. The stockholders equity has been wiped out by past losses....
-
Explain the structure/form of the supply chain management practiced by Gardenia Bakeries (KL) Sdn Bhd. Provide an appropriate diagram that illustrates the supply chain management practiced AND its...
-
When possible, compute the truth values of the simple components in the following compound propositions. If no truth value can be computed, write a question mark (?) under the letter or letters with...
-
Phoebe and Ruby have been in a relationship for many years which is not supported by their families. They would like to ensure that their individually owned assets will transfer directly to a...
-
Which tax may or may not be withheld from your paycheck depending on where you live? Explain.
-
How do sculptors engage with critical theories and philosophical frameworks in their exploration of themes such as identity, power dynamics, and the relationship between the human and the natural...
-
Chastain Corporation is trying to determine the effect of its inventory turnover ratio and days sales outstanding (DSO) on its cash conversion cycle. Chastain's 2021 sales (all on credit) were...
-
How is allowable depreciation of a home office or workspace factored in to the sale of home exclusion?
-
Explore the ethical considerations associated with the taxation of consolidated companies. How can companies ensure compliance with tax regulations while optimizing their tax strategies?
-
If a person's kidneys are not working well, drinking high amounts of water can cause the fluid that surrounds the bodies tissues to become dilute: the fluid around the cells has a very high level of...
-
From 1970 to 1990, Sri Lanka's population grew by approximately 2.2 million persons every five years. The population in 1970 was 12.2 million people.What is the best formula for P, Sri Lanka's...
-
Why is it important to supplement studies of Canadian accounting principles with studies of the accounting practices used in other countries?
-
Required: (a) Determine who lost the $300,000. (b) Explain how the loss should be allocated on the consolidated financial statements. Several years ago, the Penston Company purchased 90% of the...
-
The following are a number of scenarios that show variations in the nature of long term intercorporate investments. Assume that all companies are public companies. 1. A Ltd. owns 45% of B Co....
-
Name three or more branches of Earth science, and describe the focus of each.
-
Earth has remained about the same size since it formed 4.6 billion years ago. What does this suggest about the rate of seafloor spreading compared to the rate of subduction?
-
Why is Earth science an integrated science?
Study smarter with the SolutionInn App