Ramiro Company purchased 40% of the outstanding stock of Marco Company on January 1. Marco reported net income of $95,300 and declared dividends of $21,200 during the year. How much would Ramiro adjustits investment in Marco Company under the equity method?of $DecreaseIncrease

Equity Method : The equity method in accounting is the technique of accounting for investments in…

Answered: Ramiro Company purchased 40% of the…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

For Year 1, prepare any journal and adjusting entries related to the investment in Band Inc.
Acker Company bought 100% of Howell Company on 1/1/X1 for $1,440,000 and began applying the equity method. The book value of Howell's equity on that date was $1,440,000. In year X1, Howell reported net income of $100,000 and paid $40,000 in dividends. During year X1, Howell sold 1,000 units of inventory to Acker for $20,000 that had cost $10,000. On 12/31/X1, 400 of the units remained in Acker's inventory. How much investment income should Acker report in year X1
An investor company owns 40% of the outstanding common stock of an investee company, which allows the investor to exercise significant influence over the investee. The Equity Investment was reported at $1,050,000 as of the end of the previous year. During the year, the investor received dividends of $110,000 from the investee. The investee reports the following income statement for the year: Revenues Expenses $2,700,000 1,800,000 900,000 100,000 Comprehensive income $1,000,000 a. How much equity income should the investor report in its net income (i.e., as part of the current year income statement)? Net income Other comprehensive income $0 b. What amount should the investor report for the Equity Investment in its balance sheet at the end of the year? $0
Acme Company owns 35% of Superior Company. Superior Company declared and paid $44,000 cash dividends for the year. Acme Company's journal entry to record the dividends includes a: Ocredit to the Investment account for $44.000. credit to Dividend Revenue for $15.400. credit to the Investment account for $15,400. credit to Dividend Revenue for $44,000. None of the above. C
Mozart Co. owns 35% of Melody Inc. Melody pays $50,000 in cash dividends to its shareholders for the period. Mozart's entry to record the Melody dividend includes a? O Debit to Cash for $50,000 O Credit to Cash for $17,500 Credit to Investment Revenue for $50,000 O Credit to Equity Method Investments for $17,500
How would I go about finding the income and dividends. I am not sure weather I'm supposed to subtract $24,000 from $78,000?
Dengar
Zach Company owns 45% of the voting stock of Tomas Corporation and uses the equity method in recording this investment. Tomas Corporation reported a $11,100 net loss. Zach Company's entry would include a Oa. credit to cash for $4,995 Ob. credit to the investment account for $4,995 Oc. credit to a loss account for $4,995 Od. debit to the investment account for $4,995 K Previous Next 3:23 PM 53°F Sunny ^ 12/14/2021 a. 近

On January 2, 20Y4, Whitworth Company acquired 40% of the outstanding stock of Aloof Company for $340,000. For the year ended December 31, 20Y4, Aloof Company earned income of $180,000 and paid dividends of $10,000. On January 31 20Y5, Whitworth Company sold all of its investment in Aloof Company stock for $405,000. Journalize the entries for Whitworth Company for the purchase of the stock, the share of Aloof income, the dividends received from Aloof Company, and the sale of the Aloof Company stock. If an amount box does not require an entry, leave it blank. Jan. 2, 20Y4 - Purchase Dec. 31, 20Y4 - Income Dec. 31, 20Y4 - Dividends Jan. 31, 20Y5 - Sale
Please answer part D a. On January 1, Yourkie Company acquired 30% of the outstanding stock of Harris Company for $300,000. DATE Debit Credit X/X b. For the year ended December 31, Harris Company earned income of $50,000. DATE Debit Credit X/X c. For the year ended December 31, Harris Company paid dividends of $8,000. DATE Debit Credit X/X d. On January 8th of the next year, Yorkshire Company sold the Harris Company stock for $301,000. DATE Debit Credit X/X
Equity Method. At midyear, Courtland Containers, Inc. purchased a 35 percent ownership interest in Water-town Consolidated, Inc. for $52 million. At year end, Watertown reported an operating loss of $2million, of which only $1million related to the second half of they ear. Despite the operating loss, Watertown paid its regular quarterly dividend of $1.25 million in both the third and fourth quarters. Required 1. What is Courtland’s share of Watertown’s earnings after its investment? 2. Calculate the book value that Courtland should record on its balance sheet for its investment in Watertown at year-end.

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS

Expert Answers to Latest Homework Questions

Q: General Account Subject

Q: Hii expert please provide correct answer

Q: posting in general account subject questions.

Q: Need Answer of this one with correct option that one given

Q: Hello can u help me with this problem

Q: Need Correct Option of this General Accounting Question

Q: choose correct option

Q: What is the average inventory on this accounting question?

Q: Subject:- General Account

Q: What are the estimated direct labor costs?

Q: how much is the gross profit margin

Q: Only expert of financial accounting can accept this

Q: Calculate the inventory days on hand, assuming:

Q: General Accounting

Q: Please provide correct answer

Q: None

Q: K&I Corp. has current liabilities of $445,000, a quick ratio of 0.82, an inventory turnover of 5.8,…

Q: Answer? ?

Q: Chipa Corp. started the year with total assets of $303,000 and total liabilities of $243,000. During…

Q: 5670 mm The apartment in the ground floor of three floors building in Fig. in Baghdad city. The…

Q: Need Answer fast please tutor

Ramiro Company purchased 40% of the outstanding stock of Marco Company on January 1. Marco reported net income of $95,300 and declared dividends of $21,200 during the year. How much would Ramiro adju its investment in Marco Company under the equity method? of $ Decrease Increase

Expert Answers to Latest Homework Questions