Question
In: Accounting
On January 4, 2016, Spandella Company purchased 175,000 shares of Filington Company directly from one of...
On January 4, 2016, Spandella Company purchased 175,000 shares of Filington Company directly from one of the founders for a price of $30 per share. Filington has 500,000 shares outstanding, including the shares acquired by Spandella Company. On July 2, 2016, Filington paid $620,000 in total dividends to its shareholders. On December 31, 2016, Filington reported a net income of $1,050,000 for the year. Spandella uses the equity method in accounting for its investment in Filington.
Determine the December 31, 2016, balance of the Investment in Filington Company Stock account.
Solutions
ekkarill92 answered 1 year agoRelated Solutions
On January 4, 2016, Spandella Company purchased 168,000 shares of Filington Company directly from one of...
On January 4, 2016, Spandella Company purchased 168,000 shares
of Filington Company directly from one of the founders for a price
of $27 per share. Filington has 560,000 shares outstanding,
including the shares acquired by Spandella Company. On July 2,
2016, Filington paid $717,000 in total dividends to its
shareholders. On December 31, 2016, Filington reported a net income
of $963,000 for the year. Spandella uses the equity method in
accounting for its investment in Filington.
Required:
A.
Provide the...
On January 1st 2016 the Snoke Company purchased 100 of the 1000 shares of The First...
On January 1st 2016 the Snoke Company purchased 100 of the 1000
shares of The First Order Company stock for $6000 At this time
Snoke has no influence over The First Order.
On July 1st The First Order paid a $1 per share dividend
On December 31st The First order reported income for 2016 of
$5000 and its stock was selling for $63 per share
On January 2nd 2017 the Snoke Company purchased another 100
shares of The First Order...
On January 1, 2016, the Turner Company purchased a patent from the Hanson Company for $172,000....
On January 1, 2016, the Turner Company purchased a patent from
the Hanson Company for $172,000. The patent had an estimated useful
life of 12 years at that time. On January 1, 2018, the Turner
Company incurred legal costs of $42,000 to successfully defended
their patent against infringement by another company. On January 1,
2019, the Turner Company purchased a competing patent from the
Miller Company for $36,000. They have no plans to use the competing
patent in their business....
a. A patent was purchased from the Lou Company for $1,600,000 on January 1, 2016. Janes...
a. A patent was purchased from the Lou Company for $1,600,000 on
January 1, 2016. Janes estimated the remaining useful life of the
patent to be 10 years. The patent was carried on Lou’s accounting
records at a net book value of $530,000 when Lou sold it to
Janes.
b. During 2018, a franchise was purchased from the Rink Company
for $680,000. The contractual life of the franchise is 10 years and
Janes records a full year of amortization in...
On January 1, 2016, Halstead, Inc., purchased 71,000 shares of Sedgwick Company common stock for $1,392,000,...
On January 1, 2016, Halstead, Inc., purchased 71,000 shares of
Sedgwick Company common stock for $1,392,000, giving Halstead 25
percent ownership and the ability to apply significant influence
over Sedgwick. Any excess of cost over book value acquired was
attributed solely to goodwill.
Sedgwick reports net income and dividends as follows. These
amounts are assumed to have occurred evenly throughout these years.
Dividends are declared and paid in the same period.
Net Income
Annual Cash Dividends (paid quarterly)
2016
$406,000...
On January 1, 2016, Halstead, Inc., purchased 81,000 shares of Sedgwick Company common stock for $1,533,000,...
On January 1, 2016,
Halstead, Inc., purchased 81,000 shares of Sedgwick Company common
stock for $1,533,000, giving Halstead 25 percent ownership and the
ability to apply significant influence over Sedgwick. Any excess of
cost over book value acquired was attributed solely to
goodwill.
Sedgwick reports net
income and dividends as follows. These amounts are assumed to have
occurred evenly throughout these years. Dividends are declared and
paid in the same period.
Net
Income
Annual Cash
Dividends (paid quarterly)
2016
$378,000...
1) On January 4, Year 1, Barber Company purchased 7,500 shares of Convell Company for $84,500...
1) On January 4, Year 1, Barber Company purchased 7,500 shares
of Convell Company for $84,500 plus a broker's fee of $1,500.
Convell Company has a total of 37,500 shares of common stock
outstanding and it is presumed the Barber Company will have a
significant influence over Convell. During each of the next two
years, Convell declared and paid cash dividends of $0.85 per share,
and its net income was $97,000 and $92,000 for Year 1 and Year 2,
respectively....
On January 4, Year 1, Barber Company purchased 7,500 shares of Convell Company for $84,500 plus...
On January 4, Year 1, Barber Company purchased 7,500 shares of
Convell Company for $84,500 plus a broker's fee of $1,500. Convell
Company has a total of 37,500 shares of common stock outstanding
and it is presumed the Barber Company will have a significant
influence over Convell. During each of the next two years, Convell
declared and paid cash dividends of $0.85 per share, and its net
income was $97,000 and $92,000 for Year 1 and Year 2, respectively.
What...
Fortran Inc. purchased 100,000 shares, representing more than 20%, of Cobol Company on January 1, 2016....
Fortran Inc. purchased 100,000 shares, representing more than
20%, of Cobol Company on January 1, 2016. On July 1, 2016, Cobol
paid dividends. The cost of the purchase, Cobol’s net income and
total dividends for 2016 are given below. The market price of
Cobol’s stock at 12/31/16 was $60 per share.
25% purchased, $5,125,000 cost, $600,000 total dividends paid,
$3,000,000 Net Income
a.) What method of accounting should Fortran Inc. use to account
for the investment in Cobol.
b.) Prepare...
On January 1, 2016, Tiger Company purchased 6,720 shares of Eagle Corporation’s common stock when Eagle...
On January 1, 2016, Tiger Company purchased 6,720 shares of
Eagle Corporation’s common stock when Eagle had 22,400 shares
outstanding. On that date, the following information pertained to
Eagle:
Eagle Corporation Balance Sheet January 1, 2016
Depreciable assets (remaining life, 8 years) Book Value
$600,000.00 Fair Value $620,000.00
Other non-depreciable assets Book Value 290,000.00 Fair Value
300,000.00
Total Book Value $890,000.00 Fair Value $920,000.00
Liabilities Book Value $300,000.00 Fair Value $330,000.00
Shareholders’ equity Book value $590,000.00
Total $890,000.00
During 2016,...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Case Study Harwood Medical Instruments PLC Harwood Medical Instruments PLC (HMI), based just outside of Birmingham,...
- Use C language Write a program that reads in a series of lines of input character...
- 1. Explain why the earliest evidence of animals in fhe fossil record would come from chemicals...
- How much energy is required to change a 60 g ice cube from ice at -25
- Assume a property can be purchased for $105,000. The existing mortgage has a balance of only...
- 1. In general, why is it really wet in Eureka, CA and quite dry in San...
- Which one of the following was NOT a problem regarding utilitarian ethics? A) utilitarianism allows for...
ADVERTISEMENT