Question

In: Accounting

Dye Corporation purchaesd all of Ventura Company's common stock on January 1, 2017, for $2,000,000 cash....

Dye Corporation purchaesd all of Ventura Company's common stock on January 1, 2017, for $2,000,000 cash. The investee's stockholder's equity amounted to 1,600,000. The excess of $400,000 was due to an unrecorded patent with an eight- year life. In 2017, Ventura reported net income of $320,000 and paid dividends of $50,000.

What is the equity investment balance at December 2017 ?

Solutions

Expert Solution

Investment amount 2000000
Add:net income 270000
Less:dividends 50000
Investment balance 2220000
Net Income 320000
Amortization 50000
(400000/8)
Equity Income 270000

ekkarill92 answered 3 years ago
Next > < Previous

Related Solutions

Pennant Corporation acquired 80 percent of Saylor Company's common stock for $12,000,000 in cash on January...
Pennant Corporation acquired 80 percent of Saylor Company's common stock for $12,000,000 in cash on January 2, 2013. At that date, Saylor's $7,200,000 of reported net assets were fairly stated, except land was undervalued by $600,000 and unrecorded developed technology was valued at $1,200,000. The estimated fair value of the noncontrolling interest is $2,400,000 at the acquisition date. (a) Calculate total goodwill and its allocation to the controlling and noncontrolling interests. Enter answers using all zeros (do not abbreviate to...
1. On January 1, 2017, Ostrander Corporation was authorized to issue 150,000 shares of common stock,...
1. On January 1, 2017, Ostrander Corporation was authorized to issue 150,000 shares of common stock, par value $7 per share, and 40,000 shares of 5 percent cumulative preferred stock, par value $50 per share. Prepare journal entries to record the following 2017 transactions for Ostrander Corporation: 1. Issued 60,000 shares of common stock at $12 per share. 2. Issued 12,000 shares of preferred stock at $56 per share. 3. Reacquired 2,000 shares of common stock at $12 per share....
) Matthews Co. acquired all of the common stock of Jackson Co. on January 1, 2017....
) Matthews Co. acquired all of the common stock of Jackson Co. on January 1, 2017. As of that date, Jackson had the following trial balance: Debit Credit Accounts payable $ 60,000 Accounts receivable $ 50,000 Additional paid-in capital 60,000 Buildings (net) (20-year life) 140,000 Cash and short-term investments 70,000 Common stock 300,000 Equipment (net) (8-year life) 240,000 Intangible assets (indefinite life) 110,000 Land 90,000 Long-term liabilities (mature 12/31/19) 180,000 Retained earnings, 1/1/17 120,000 Supplies 20,000 Totals $ 720,000 $...
a company has the following at January 1, 2018 2,000,000 shares of common stock issued and...
a company has the following at January 1, 2018 2,000,000 shares of common stock issued and $1 par outstanding 4,000,000 shares authorized Additional paid in capital $5,750,000 retained earnings $12,345,000 During 2018 the following happened Net income: $6,789,000 cash dividend declared May 15: $.70 per share cash dividends paid on Jun 30th stock dividends declared on November 30th : 17% stock dividend distributed on 12/31 the market price of the stock has been $36 all year Prepare journal entries to...
1-On January 1, 2019, Ramtha Corporation acquired 75 percent of Ajman Company's common stock in exchange...
1-On January 1, 2019, Ramtha Corporation acquired 75 percent of Ajman Company's common stock in exchange for Ajman‘s stocks, Ramtha issued bonds payable with the par value for $500,000 and fair value of $510,000 directly to the selling stockholders of Ajman. T that date, the fair value of the noncontrolling interest was $170,000. The two companies continued to operate as separate entities subsequent to the combination. Immediately prior to the combination, the book values and fair values of the companies’...
On January 1, 2017, Fisher Corporation purchased 40 percent (80,000 shares) of the common stock of...
On January 1, 2017, Fisher Corporation purchased 40 percent (80,000 shares) of the common stock of Bowden, Inc. for $976,000 in cash and began to use the equity method for the investment. The price paid represented a $60,000 payment in excess of the book value of Fisher's share of Bowden's underlying net assets. Fisher was willing to make this extra payment because of a recently developed patent held by Bowden with a 15-year remaining life. All other assets were considered...
On January 1, 2017, Fisher Corporation purchased 40 percent (74,000 shares) of the common stock of...
On January 1, 2017, Fisher Corporation purchased 40 percent (74,000 shares) of the common stock of Bowden, Inc. for $978,000 in cash and began to use the equity method for the investment. The price paid represented a $66,000 payment in excess of the book value of Fisher's share of Bowden's underlying net assets. Fisher was willing to make this extra payment because of a recently developed patent held by Bowden with a 15-year remaining life. All other assets were considered...
On January 1, 2017, Fisher Corporation purchased 40 percent (74,000 shares) of the common stock of...
On January 1, 2017, Fisher Corporation purchased 40 percent (74,000 shares) of the common stock of Bowden, Inc. for $978,000 in cash and began to use the equity method for the investment. The price paid represented a $66,000 payment in excess of the book value of Fisher's share of Bowden's underlying net assets. Fisher was willing to make this extra payment because of a recently developed patent held by Bowden with a 15-year remaining life. All other assets were considered...
On January 1, 2017, Fisher Corporation purchased 40 percent (80,000 shares) of the common stock of...
On January 1, 2017, Fisher Corporation purchased 40 percent (80,000 shares) of the common stock of Bowden, Inc. for $978,000 in cash and began to use the equity method for the investment. The price paid represented a $66,000 payment in excess of the book value of Fisher's share of Bowden's underlying net assets. Fisher was willing to make this extra payment because of a recently developed patent held by Bowden with a 15-year remaining life. All other assets were considered...
On January 1, 2017, Fisher Corporation purchased 40 percent (86,000 shares) of the common stock of...
On January 1, 2017, Fisher Corporation purchased 40 percent (86,000 shares) of the common stock of Bowden, Inc. for $974,000 in cash and began to use the equity method for the investment. The price paid represented a $60,000 payment in excess of the book value of Fisher's share of Bowden's underlying net assets. Fisher was willing to make this extra payment because of a recently developed patent held by Bowden with a 15-year remaining life. All other assets were considered...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT