don't give me incorrect solution On January 1, 2015, Paul Corp. paid $1,800,000 for 45,000shares of Melrose Inc.'s voting common stock, representing a30% ownership. No allocation to goodwill or other specificaccount was made. Significant influence over Melrose wasachieved by this acquisition. During 2015, Melrose reported netincome of $600,000 and declared a dividend of $2.50 per share.What was the balance in the Investment in Melrose Inc. accountfound in the financial records of Paul as of December 31, 2015?

The equity method treats the investor (Paul Corp.) as if it is a partial owner of the investee…

Answered: On January 1, 2015, Paul Corp. paid…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter3: Evaluation Of Financial Performance

Section: Chapter Questions

Problem 18P

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On January 1, 2015, Paul Corp. paid $1,800,000 for 45,000 shares of Melrose Inc.'s voting common stock, representing a 30% ownership. No allocation to goodwill or other specific account was made. Significant influence over Melrose was achieved by this acquisition. During 2015, Melrose reported net income of $600,000 and declared a dividend of $2.50 per share. What was the balance in the Investment in Melrose Inc. account found in the financial records of Paul as of December 31, 2015? I want answer
On January 1, 2015, Paul Corp. paid $1,800,000 for 45,000 shares of Melrose Inc.'s voting common stock, representing a 30% ownership. No allocation to goodwill or other specific account was made. Significant influence over Melrose was achieved by this acquisition. During 2015, Melrose reported net income of $600,000 and declared a dividend of $2.50 per share. What was the balance in the Investment in Melrose Inc. account found in the financial records of Paul as of December 31, 2015? Right answer
On January 1, 2015, Paul Corp. paid $1,800,000 for 45,000 shares of Melrose Inc.'s voting common stock, representing a 30% ownership. No allocation to goodwill or other specific account was made. Significant influence over Melrose was achieved by this acquisition. During 2015, Melrose reported net income of $600,000 and declared a dividend of $2.50 per share. What was the balance in the Investment in Melrose Inc. account found in the financial records of Paul as of December 31, 2015? Hel
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What was the balance in the investment in Lennon co. Account found in the financial records of pacer as of December 31, 2013?
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On July 1, 2016, Miller Company purchased 25% of Wall Company’s outstanding ordinary shares and no goodwill resulted from the purchase. Miller appropriately carried this investment at equity and the balance in Miller’s investment account was ₱1,900,000 on December 31, 2016. Wall Company reported net income of ₱1,200,000 for the year ended December 1, 2016, and paid dividend totaling ₱480,000 on December 31, 2016. How much did Miller pay for the 25% interest in Wall? a. 1,720,000b. 2,020,000c. 1,870,000d. 2,170,000 What is the solution for option C?
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On July 1, 2016 TICKLE Company purchased 80% of the outstanding shares of DOODLE Company at a cost of P1,600,000. On that date, DOODLE had P1,000,000 of capital stock and P1,400,000 of retained earnings. For 2016, TICKLE had income of P560,000 from its separate operations and paid dividends of P300,000. For 2016, DOODLE reported income of P130,000 and paid dividends of P60,000. All the assets and liabilities of DOODLE have book values equal to their respective fair market values. Assume income was earned evenly throughout the year except for the intercompany transaction on October 1. On October 1, TÍCKLE purchased an equipment from DOODLE for P200,00O. The book value of the equipment on that date was P240,000. The loss of P40,000 is reflected in the income of DOODLE indicated above. The equipment is expected to have a useful life of 5 years from the date of sale. In the December 31, 2016 consolidated statement of financial position, determine the consolidated net income attributable to…
Liala Ltd acquired all the issued shares of Jordan Ltd on 1 January 2015. The following transactions occurred between the two entities:  On 1 June 2016, Liala Ltd sold inventory to Jordan Ltd for $12,000, this inventory previously costed Liala Ltd $10,000. By 30 June 2016, Jordan Ltd had sold 20% of this inventory to other entities for $3,000. The other 80% was all sold to external entities by 30 June 2017 for $13,000.  During the 2016–17 period, Jordan Ltd sold inventory to Liala Ltd for $6,000, this being at cost plus 20% mark-up. Of this inventory, 20 % remained on hand in Liala Ltd at 30 June 2017. The tax rate is 30%. Required: (i) Prepare the consolidation worksheet entries for Liala Ltd at 30 June 2017 in relation to the intragroup transfers of inventory 2. Compute the amount of cost of goods sold to be reported in the consolidated income statement for 2017 relating to the relevant intra-group sales.
Z Inc. acquired 75% of the outstanding voting common stock ofY Inc. on January 1, 2016, for $350,00. At the end of 2016, Z Inc. reported revenues of $300,000 and Y Inc. reported revenues of $210,000. During 2016, Z Inc. sold inventory for $75,000 to Y Inc. which has paid only half of this purchase till the end of 2016. Also, 60% of these goods are still in Y Inc.'s warehouse. What should be recorded as consolidated revenues for 2016 by Z Inc.? a. $435,000 b. $465,000 c. $510,000 d. $457,500

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