On January 1, 2024, Pine Company owns 40 percent (44,000 shares) of Seacrest, Incorporated, which it purchased several years ago for $211,200. Since the date of acquisition, the equity method has been properly applied, and the carrying amount of the investment account as of January 1, 2024, is $283,800. Excess patent cost amortization of $13,200 is still being recognized each year. During 2024, Seacrest reports net income of $366,000 and a $132,000 other comprehensive loss, both incurred uniformly throughout the year. No dividends were declared during the year. Pine sold 8,800 shares of Seacrest on August 1, 2024, for $105,336 in cash. However, Pine retains the ability to significantly influence the investee.

On January 1, 2024, Pine Company owns 40 percent (44,000 shares) of Seacrest, Incorporated, which it purchased several years ago for $211,200. Since the date of acquisition, the equity method has been properly applied, and the carrying amount of the investment account as of January 1, 2024, is $283,800. Excess patent cost amortization of $13,200 is still being recognized each year. During 2024, Seacrest reports net income of $366,000 and a $132,000 other comprehensive loss, both incurred uniformly throughout the year. No dividends were declared during the year. Pine sold 8,800 shares of Seacrest on August 1, 2024, for $105,336 in cash. However, Pine retains the ability to significantly influence the investee.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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