On January 2, 2024, Miller Properties paid $19 million for 1 million shares of Marion Company's 6 million outstanding common shares. Miller's CEO became a member of Marlon's board of directors during the first quarter of 2024. The carrying amount of Marlon's net assets was $72 million. Miller estimated the fair value of those net assets to be the same except for a patent valued at $36 million above cost. The remaining amortization period for the patent is 10 years. Marion reported earnings of $27 million and paid dividends of $6 million during 2024. On December 31, 2024, Marlon's common stock was trading on the NYSE at $18.50 per share. Required: 2. Assume Miller accounts for its Investment in Marlon using the equity method. Ignoring Income taxes, determine the amounts related to the Investment to be reported in its 2024. Note: Do not round Intermediate calculations. Enter all amounts as positive values. Enter your answers in millions rounded to 1 decimal place, (l.e., 5,500,000 should be entered as 5.5).: Income statement b. Balance sheet c. Statement of cash flows Operating cash flow Investing cash flow million million million million

On January 2, 2024, Miller Properties paid $19 million for 1 million shares of Marion Company's 6 million outstanding common shares. Miller's CEO became a member of Marlon's board of directors during the first quarter of 2024. The carrying amount of Marlon's net assets was $72 million. Miller estimated the fair value of those net assets to be the same except for a patent valued at $36 million above cost. The remaining amortization period for the patent is 10 years. Marion reported earnings of $27 million and paid dividends of $6 million during 2024. On December 31, 2024, Marlon's common stock was trading on the NYSE at $18.50 per share. Required: 2. Assume Miller accounts for its Investment in Marlon using the equity method. Ignoring Income taxes, determine the amounts related to the Investment to be reported in its 2024. Note: Do not round Intermediate calculations. Enter all amounts as positive values. Enter your answers in millions rounded to 1 decimal place, (l.e., 5,500,000 should be entered as 5.5).: Income statement b. Balance sheet c. Statement of cash flows Operating cash flow Investing cash flow million million million million

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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Question

7
On January 2, 2024, Miller Properties paid $19 million for 1 million shares of Marlon Company's 6 million outstanding common shares.
Miller's CEO became a member of Marlon's board of directors during the first quarter of 2024.
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References
The carrying amount of Marlon's net assets was $72 million. Miller estimated the fair value of those net assets to be the same except
for a patent valued at $36 million above cost. The remaining amortization period for the patent is 10 years.
Marlon reported earnings of $27 million and paid dividends of $6 million during 2024. On December 31, 2024, Marlon's common stock
was trading on the NYSE at $18.50 per share.
Required:
2. Assume Miller accounts for its Investment In Marlon using the equity method. Ignoring Income taxes, determine the amounts related
to the Investment to be reported in its 2024.
Note: Do not round Intermediate calculations. Enter all amounts as positive values. Enter your answers in millions rounded to 1
decimal place, (l.e., 5,500,000 should be entered as 5.5).:
a. Income statement
b. Balance sheet
c. Statement of cash flows
Operating cash flow
Investing cash flow
million
million
million
million

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