The following selected account balances were taken from the financial statements of Concord Inc. concerning its long-term investment in shares of Bramble Inc. over which it has had significant influence since 2017: Investment in associate, Bramble Inc. Investment income recorded for Bramble At December 31, 2020, the following information is available: Dec. 31, 2020 $508,200 21.500 2. 3. Dec. 31, 2019 1. Concord purchased additional common shares in Bramble Inc. on January 2, 2020, for $73,000. As a result of this purchase, Concord's ownership interest in Bramble increased to 50%. $422.200 10,700 Bramble reported income of $43,000 for the year ended December 31, 2020. Bramble declared and paid total dividends of $17,000 on its common shares for the year ended December 31, 2020.
The following selected account balances were taken from the financial statements of Concord Inc. concerning its long-term investment in shares of Bramble Inc. over which it has had significant influence since 2017: Investment in associate, Bramble Inc. Investment income recorded for Bramble At December 31, 2020, the following information is available: Dec. 31, 2020 $508,200 21.500 2. 3. Dec. 31, 2019 1. Concord purchased additional common shares in Bramble Inc. on January 2, 2020, for $73,000. As a result of this purchase, Concord's ownership interest in Bramble increased to 50%. $422.200 10,700 Bramble reported income of $43,000 for the year ended December 31, 2020. Bramble declared and paid total dividends of $17,000 on its common shares for the year ended December 31, 2020.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Do not hive image format
Transcribed Image Text:Prepare a table that contrasts the direct and indirect methods for presenting all transactions related to the Concord Inc.
investment on Concord's statement of cash flows based on the assumption that Bramble uses IFRS and adopts the policy of
classifying dividends received as investing activities. Be specific about the classification in the statement for each item that is
reported. (Show amounts that decrease cash flow with either a-sign e.g.-15,000 or in parenthesis e.g. (15,000). Do not leave any
answer field blank. Enter O for amounts.)
Operating Activities
Investing Activities
> Show Transcribed Text
Operating Activities:
$
Investing Activities
Direct
Ĵ
Ĉ
$
Prepare a table that contrasts the direct and indirect methods for presenting all transactions related to the Bramble Inc.
investment on Concord's statement of cash flows based on the assumption that Bramble uses ASPE and must therefore classify
dividends received as operating cash flows. (Show amounts that decrease cash flow with either a-sign e.g.-15,000 or in parenthesis
eg. (15,000). Do not leave any answer field blank. Enter O for amounts)
Indirect
10
Direct
$
Indirect
Transcribed Image Text:The following selected account balances were taken from the financial statements of Concord Inc. concerning its long-term
investment in shares of Bramble Inc. over which it has had significant influence since 2017:
Investment in associate, Bramble Inc.
Investment income recorded for Bramble
1.
At December 31, 2020, the following information is available:
2.
3.
Dec. 31, 2020
$508,200
Show Transcribed Text
21,500
Balance Dec. 31, 2020 $
Concord purchased additional common shares in Bramble Inc. on January 2, 2020, for $73,000. As a result of this.
purchase, Concord's ownership interest in Bramble increased to 50%.
Bramble reported income of $43,000 for the year ended December 31, 2020.
Bramble declared and paid total dividends of $17,000 on its common shares for the year ended December 31, 2020.
Dec. 31, 2019
$422.200
S
10,700
Ć
Determine the balance of the Investment in Bramble Inc. account at December 31, 2020, assuming Concord Inc. uses the equity
method for this investment.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 5 steps with 1 images
Recommended textbooks for you
Accounting
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,
Accounting
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