nzelmo Corporation invested in Jones Manufacturing by purchasing a​ 10% interest in the company. Anzelmo had no significant influence in Jones. Over​ time, Anzelmo acquired more shares in​ Jones, and in​ 2016, Anzelmo's president became a member of the board of directors when its ownership interest reached​ 30% of Jones. The cost basis of its investment is​ $2,000,000. Under the equity​ method, the valuation of the investment would be​ $2,400,000. The fair value of the investment is​ $2,600,000. What is the amount of the adjustment to the investment account necessary to properly record the change in accounting​ principal?

Golf Guide is seeking new customers through both direct mail and magazine ads. In a recent period, Golf Guide spent $25,277 on direct mail and spent $34,173 on golf magazine ads. The company gained 548 new customers through its direct mail and gained 805 new customers through its magazine ads. Calculate the overall cost per customer acquired for the combined program of direct mail and magazine ads. (Rounding: nearest penny.)

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Your friend Tom Smith has decided to expand Smith Sales Company. He has acquired an expansion loan and purchased $500,000 of plant assets as part of the expansion. Tom values your advice and requests your help in properly depreciating the plant assets. Tom has paid you well for your advice and you readily accept the challenge.

Explain the different methods that can be used to calculate depreciation including: Straight-line, Double declining balance, Units of production & Sum of years digits.

Firm X is being acquired by Firm Y for $35,000 worth of Firm Y stock (valued at the pre-merger current price of Y). Both firms are all-equity financed. The incremental value created by the merger is $2,500. Firm X has 2,000 shares of stock outstanding at $16 per share. Firm Y has 1,200 shares of stock outstanding at a price of $40 per share. What is the actual cost of the acquisition to Firm Y using company stock? Why is the actual cost less than $35,000?

1. Firm X is being acquired by Firm Y for $35,000 worth of Firm Y stock (valued at the pre-merger current price of Y). Both firms are “all-equity” financed. The incremental value created by the merger is $2,500. Firm X has 2,000 shares of stock outstanding at $16 per share. Firm Y has 1,200 shares of stock outstanding at a price of $40 per share. What is the actual cost of the acquisition to Firm Y using company stock? Why is the actual cost less than $35,000?

For this final discussion, I would like you to venture out beyond the information presented in this class and find a news article or magazine article (something "current") that is related to a company software upgrade. Identify what software was updated and why, security concerns, etc. Explain how the story or example works in regards to the things we have focused on in this course. Given your newly acquired knowledge on these topics, what stands out to you from this story? Is there anything you feel could have been done better?  

Bohemian Company has 500,000 shares of no par common stock with a stated value of $8 per share issued and outstanding as of January 1, originally issued for $14 per share. During 2018, Bohemian Company had the following transactions involving its own stock: On March 6, acquired 27,965 shares of treasury stock at a cost of $12 per share On April 18, resold 5,280 shares of treasury stock at $19 per share. On June 11, resold an additional 2,210 shares of treasury stock at $10 per share If Bohemian uses the cost method of accounting for treasury stock, what will be the balance in additional paid in capital from treasury stock as a result of these transactions?

Summer Company sells all its output at 25 percent above cost. Parade Corporation purchases all its inventory from Summer. Selected information on the operations of the companies over the past three years is as follows:

Parade acquired 70 percent of the ownership of Summer on January 1, 20X1, at underlying book value.

Required:
Compute consolidated net income and income assigned to the controlling interest for 20X2, 20X3, and 20X4

Summer Company sells all its output at 25 percent above cost. Parade Corporation purchases all its inventory from Summer. Selected information on the operations of the companies over the past three years is as follows:

Parade acquired 60 percent of the ownership of Summer on January 1, 20X1, at underlying book value.

Required:
Compute consolidated net income and income assigned to the controlling interest for 20X2, 20X3, and 20X4.