A.
Equity Method Accounting:
The equity method of accounting is the process of creating investments in associate companies. Equity accounting is usually applied wherein the investor entity holds 20-50% of the voting stock of the associate company.
Calculation of investment amount when A’s Company invested in K’s company and uses the equity-method accounting.
B.
Non-Controlling Interest:
Non-Controlling Interest is the portion of a subsidiary corporation’s stock that is not owned by the parent company. Non-controlling Interest is also known as Minority interest.
Calculation of Non-controlling interest in the consolidated income statement for 20
4.
C.
Consolidated Net Income:
Consolidated Net Income is the sum of net income of Parent Company excluding any income from subsidiaries recognized in its financial statement plus net income of its subsidiaries determine after excluding unrealized gains, income from intra group transactions etc.
Calculation of consolidated Net income for 20
4.
D.
Treatment of dividend
Holding the Company’s share of dividends will appear with
The reason why A’s company did not report net income $79,000
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Chapter 3 Solutions
Advanced Financial Accounting
- If you give me wrong answer this general accounting question I will give you unhelpful ratearrow_forwardA company currently has $54 million in sales, $23 million in current assets, $43 million in fixed assets, and $15 million in accounts payable. The fixed assets are currently operated with full capacity and will change proportionally with the sales growth. Sales are projected to be $85 million, current assets are projected to be $32.2 million, and accounts payable are projected to be $21.0 million. What are fixed assets projected to be, given this information?arrow_forwardAccountingarrow_forward
Cornerstones of Financial AccountingAccountingISBN:9781337690881Author:Jay Rich, Jeff JonesPublisher:Cengage Learning