Assume allan applies the equity method

Assignment Help Financial Accounting

Reference no: EM13966267

Income Dividends

2012 $80,000 $30,000

2013 $100,000 $40,000

In each purchase, Allan attributes any excess of cost over book value to Bellevue's franchise agreements that had a remaining life of 10 years at January 1, 2012. Also at January 1, 2012, Bellevue reports a net book value of $280,000.

a. Assume Allan applies the equity method to its Investment in Bellevue account:

1.On Allan's December 31, 2013, balance sheet, what amount is reported for the Investment in Bellevue account?
2. What amount of equity income should Allan report for 2013?
3. Prepare the January 1, 2013, journal entry to retrospectively adjust the Investment in Bellevue account to the equity method.

b. Assume Allan elects the fair-value reporting option for its investment in Bellevue
1 On Allan's December 31, 2013, balance sheet, what amount is reported for the Investment in Bellevue account?
2. What amount of income from its investment in Bellevue should Allan report for 2013?

Reference no: EM13966267

Questions Cloud

Difference between macroeconomics and microeconomics : Why is it desirable for a country to have a larger GDP? Give an example of something that would raise GDP and yet be undesirable.

Develop a risk assessment matrix for the briargrove project : Develop a risk assessment matrix for The Briargrove Project. Develop a Matrix for assessing an aspect of the project

Analyze your data and display it in a histogram : You can analyze your data and display it in a histogram (a column chart that displays frequency data) by using the Histogram tool of the Analysis ToolPak. This data analysis add-in (add-in: A supplemental program that adds custom commands or custom f..

Having a sustainable supply deals with : Having a sustainable supply deals with

Assume allan applies the equity method : Assume Allan applies the equity method to its Investment in Bellevue account

Positions of a test machine : In order to test the wear on four hyperalloys, a test piece of each alloy was extracted from each of the three positions of a test machine. The reduction of weight in milligrams due to wear was determined on each piece, and the data are given in T..

Pivotal roles in upholding ethical conduct : Analyze the primary way in which different staffing levels may play pivotal roles in upholding ethical conduct, including treating patients with dignity. Justify your position.

How the fish bone diagram is created : In addition, in your paper include a discussion on: How the Fish Bone diagram is created. The benefits of using a Fish Bone diagram. An example of when the Fish Bone diagram is most useful

Correcting errors in trial balance of joy mcdowell tutoring : Correcting errors in trial balance. The following trial balance of Joy McDowell Tutoring Service as of May 31, 2015, does not balance. Joy McDowell Tutoring Service.

User Account

All Pages