Equity method : Equity method is the accounting method used for accounting equity investments which claim a significant influence of above 20% but less than 50% in the outstanding stock of the investee company. To indicate : The effect of dividend revenue under equity method

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Chapter 12, Problem 12.18Q

To determine

Equity method: Equity method is the accounting method used for accounting equity investments which claim a significant influence of above 20% but less than 50% in the outstanding stock of the investee company.

To indicate: The effect of dividend revenue under equity method

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ABF's metal spare parts manufacturing company uses the customised production method by attributing the GST to the products it produces with the help of predetermined attribution coefficients. The processing of metal parts is carried out in two production departments: the Cutting and Drilling department, and the Assembly department. The GIS attribution coefficients for the two departments are based on the operating hours of machines and the cost of direct work respectively. At the beginning of the year, the following budgets were implemented: Cutting and Drilling Department Assembly Department Direct Labor Costs (in euros) 1.320.000 2.000.000 G.B.E. (in euros) 4.800.000 2.400.000 Machinery Operating Hours 80.000 5.000 Direct Work Hours 27.000 12.000 Requested: To calculate the coefficient of attribution of the General Secretariat that will be used in each department. (4 units) To determine the production cost per unit for order 158 which…

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Question

Chapter 12, Problem 12.18Q

To determine

Equity method: Equity method is the accounting method used for accounting equity investments which claim a significant influence of above 20% but less than 50% in the outstanding stock of the investee company.

To indicate: The effect of dividend revenue under equity method

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Answer 3

Question

Chapter 12, Problem 12.18Q

To determine

Equity method: Equity method is the accounting method used for accounting equity investments which claim a significant influence of above 20% but less than 50% in the outstanding stock of the investee company.

To indicate: The effect of dividend revenue under equity method

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Answer 4

Question

Chapter 12, Problem 12.18Q

To determine

Equity method: Equity method is the accounting method used for accounting equity investments which claim a significant influence of above 20% but less than 50% in the outstanding stock of the investee company.

To indicate: The effect of dividend revenue under equity method

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Answer 5

Chapter 12, Problem 12.18Q

To determine

Equity method: Equity method is the accounting method used for accounting equity investments which claim a significant influence of above 20% but less than 50% in the outstanding stock of the investee company.

To indicate: The effect of dividend revenue under equity method

Answer 6

Chapter 12, Problem 12.18Q

To determine

Equity method: Equity method is the accounting method used for accounting equity investments which claim a significant influence of above 20% but less than 50% in the outstanding stock of the investee company.

To indicate: The effect of dividend revenue under equity method

Answer 7

Chapter 12, Problem 12.18Q

To determine

Equity method: Equity method is the accounting method used for accounting equity investments which claim a significant influence of above 20% but less than 50% in the outstanding stock of the investee company.

To indicate: The effect of dividend revenue under equity method

Answer 8

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Answer 9

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Answer 11

Ch. 12 - All investments in debt securities are classified...Ch. 12 - When market rates of interest rise after a...Ch. 12 - Does GAAP distinguish between fair values that are...Ch. 12 - When a debt investment is acquired to be held for...Ch. 12 - Prob. 12.5Q Ch. 12 - What is comprehensive income? Its composition...Ch. 12 - Why are holding gains and losses treated...Ch. 12 - Prob. 12.8Q Ch. 12 - Prob. 12.9Q Ch. 12 - Prob. 12.10Q

Equity method : Equity method is the accounting method used for accounting equity investments which claim a significant influence of above 20% but less than 50% in the outstanding stock of the investee company. To indicate : The effect of dividend revenue under equity method

Solution Summary: The author explains the accounting method used for accounting equity investments which claim a significant influence of above 20% but less than 50% in the outstanding stock of the investee company.

Concept explainers

Equity method: Equity method is the accounting method used for accounting equity investments which claim a significant influence of above 20% but less than 50% in the outstanding stock of the investee company.

To indicate: The effect of dividend revenue under equity method

Want to see the full answer?

Chapter 12 Solutions

Equity method : Equity method is the accounting method used for accounting equity investments which claim a significant influence of above 20% but less than 50% in the outstanding stock of the investee company. To indicate : The effect of dividend revenue under equity method

Solution Summary: The author explains the accounting method used for accounting equity investments which claim a significant influence of above 20% but less than 50% in the outstanding stock of the investee company.

Concept explainers

Equity method: Equity method is the accounting method used for accounting equity investments which claim a significant influence of above 20% but less than 50% in the outstanding stock of the investee company. To indicate: The effect of dividend revenue under equity method

Want to see the full answer?

Chapter 12 Solutions

Equity method: Equity method is the accounting method used for accounting equity investments which claim a significant influence of above 20% but less than 50% in the outstanding stock of the investee company.

To indicate: The effect of dividend revenue under equity method