ADVANCED FIN. ACCT. LL W/ACCESS>CUSTOM<
12th Edition
ISBN: 9781265074623
Author: Christensen
Publisher: MCG CUSTOM
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Question
Chapter 4, Problem 4.8E
To determine
Concept Introduction:
Equity Method of valuation of investment: In this method parent, company value investment on the historical cost of the investment plus apportioned profit in the associate company less dividend paid by the associate company.
To Prepare:
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Pirate Corporation purchased 100 percent ownership of Ship Company on January 1, 20X5, for $279,000. On that date, the book value
of Ship's reported net assets was $206,000. The excess over book value paid is attributable to depreciable assets with a remaining
useful life of 5 years. Net income and dividend payments of Ship in the following periods were as shown below:
Year
20x5
20x6
28X7
Net Income
$30,000
50,000
30,000
Required:
Prepare journal entries on Pirate Corporation's books relating to its investment in Ship Company for each of the three years, assuming
it accounts for the investment using the equity method.
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
View transaction list
Dividends
$5,000
15,000
47,000
Journal entry worksheet
Company X transfers an asset that originally cost of P10,000 to its wholly
owned subsidiary Company Y in 20X1. The transfer price was P13,000. Both
companies charge straight-line depreciation at 10 per cent per annum. A
full year's charge is made in the year of acquisition and none in the year of
disposal. Company X had owned the asset for five years prior to the period
in which the asset was transferred. Ignoring the effects of deferred tax,
what is the net adjustment required to group profit in 20X1? *
Your answer
Baghiben
Chapter 4 Solutions
ADVANCED FIN. ACCT. LL W/ACCESS>CUSTOM<
Ch. 4 - When is the carrying value of the investment...Ch. 4 - What is a differential? How is a differential...Ch. 4 - Prob. 4.3QCh. 4 - Prob. 4.4QCh. 4 - Prob. 4.5QCh. 4 - Prob. 4.6QCh. 4 - Prob. 4.7QCh. 4 - Prob. 4.8QCh. 4 - Prob. 4.9QCh. 4 - Prob. 4.10Q
Ch. 4 - Prob. 4.11QCh. 4 - What determines whether the balance assigned to...Ch. 4 - What does the termpushdown accountingmean?Ch. 4 - Under what conditions is push-down accounting...Ch. 4 - Prob. 4.15QCh. 4 - Prob. 4.2CCh. 4 - Prob. 4.3CCh. 4 - Prob. 4.4CCh. 4 - Prob. 4.1ECh. 4 - Prob. 4.2ECh. 4 - Prob. 4.3ECh. 4 - Prob. 4.4ECh. 4 - Prob. 4.5ECh. 4 - Prob. 4.6ECh. 4 - Prob. 4.7ECh. 4 - Prob. 4.8ECh. 4 - Prob. 4.9ECh. 4 - Prob. 4.10.1ECh. 4 - Prob. 4.10.2ECh. 4 - Prob. 4.10.3ECh. 4 - Prob. 4.10.4ECh. 4 - Prob. 4.10.5ECh. 4 - Prob. 4.11.1ECh. 4 - Prob. 4.11.2ECh. 4 - Prob. 4.11.3ECh. 4 - Prob. 4.11.4ECh. 4 - Prob. 4.12ECh. 4 - Prob. 4.13ECh. 4 - Prob. 4.14ECh. 4 - Prob. 4.15ECh. 4 - Prob. 4.16ECh. 4 - Prob. 4.17ECh. 4 - Prob. 4.18.1ECh. 4 - Prob. 4.18.2ECh. 4 - Prob. 4.18.3ECh. 4 - Prob. 4.18.4ECh. 4 - Prob. 4.18.5ECh. 4 - Prob. 4.18.6ECh. 4 - Prob. 4.19ECh. 4 - Prob. 4.20ECh. 4 - Prob. 4.21ECh. 4 - Prob. 4.22ECh. 4 - Prob. 4.23ECh. 4 - Prob. 4.24AECh. 4 - Prob. 4.25PCh. 4 - Prob. 4.26PCh. 4 - Prob. 4.27PCh. 4 - Consolidated Balance Sheet Powder Company spent...Ch. 4 - Prob. 4.29PCh. 4 - Prob. 4.30PCh. 4 - Prob. 4.31PCh. 4 - Prob. 4.32PCh. 4 - Prob. 4.33PCh. 4 - Prob. 4.34PCh. 4 - Prob. 4.35PCh. 4 - Prob. 4.36PCh. 4 - Prob. 4.37AP
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