Beginning Assets were $437,600, Beginning Liabilities were $262,560, Common Stock sold during the year totaled $45,000, Revenue for the year was $414,250, Expenses for the year were $280,000, Dividends declared was $22,700, and Ending Liabilities is $350,000. What was the Beginning Equity for the year? a. $700,160 b. $787,600 c. $187,600 d. $612,560 e. $175,040 Elaine's original basis in the Hornbeam Partnership was $25,000. Her share of the taxable income from the partnership since she purchased the interest has been $100,000, and Elaine has received $75,000 in cash distributions from the partnership. Elaine did not recognize any gains as a result of the distributions. Calculate Elaine's current basis in her partnership interest. Panner, Inc., owns 30 percent of Watkins and applies the equity method. During the current year, Panner buys inventory costing $110,400 and then sells it to Watkins for $138,000. At the end of the year, Watkins still holds only $25,300 of merchandise. a) What amount of unrealized gross profit must Panner defer in reporting this investment using the equity method? 1. $6,318. 2. $11,118. 3. $1,518. 4. $8,418. b) Explain the result.
Beginning Assets were $437,600, Beginning Liabilities were $262,560, Common Stock sold during the year totaled $45,000, Revenue for the year was $414,250, Expenses for the year were $280,000, Dividends declared was $22,700, and Ending Liabilities is $350,000. What was the Beginning Equity for the year? a. $700,160 b. $787,600 c. $187,600 d. $612,560 e. $175,040 Elaine's original basis in the Hornbeam Partnership was $25,000. Her share of the taxable income from the partnership since she purchased the interest has been $100,000, and Elaine has received $75,000 in cash distributions from the partnership. Elaine did not recognize any gains as a result of the distributions. Calculate Elaine's current basis in her partnership interest. Panner, Inc., owns 30 percent of Watkins and applies the equity method. During the current year, Panner buys inventory costing $110,400 and then sells it to Watkins for $138,000. At the end of the year, Watkins still holds only $25,300 of merchandise. a) What amount of unrealized gross profit must Panner defer in reporting this investment using the equity method? 1. $6,318. 2. $11,118. 3. $1,518. 4. $8,418. b) Explain the result.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Beginning Assets were $437,600, Beginning Liabilities were $262,560, Common Stock sold during
the year totaled $45,000, Revenue for the year was $414,250, Expenses for the year were
$280,000, Dividends declared was $22,700, and Ending Liabilities is $350,000. What was the
Beginning Equity for the year?
a. $700,160
b. $787,600
c. $187,600
d. $612,560
e. $175,040
Elaine's original basis in the Hornbeam Partnership was $25,000. Her share of the taxable income
from the partnership since she purchased the interest has been $100,000, and Elaine has received
$75,000 in cash distributions from the partnership. Elaine did not recognize any gains as a result
of the distributions.
Calculate Elaine's current basis in her partnership interest.
Panner, Inc., owns 30 percent of Watkins and applies the equity method. During the current year,
Panner buys inventory costing $110,400 and then sells it to Watkins for $138,000. At the end of
the year, Watkins still holds only $25,300 of merchandise.
a) What amount of unrealized gross profit must Panner defer in reporting this investment using
the equity method?
1. $6,318.
2. $11,118.
3. $1,518.
4. $8,418.
b) Explain the result.
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