User Account

All Pages

At what amount would John record its initial investment

Assignment Help Financial Accounting
Reference no: EM133022869

Question - John Inc and Victor Inc. formed a joint venture on January 1, 2020. John invested plant and equipment with a book value of $500,000 and a fair value of $800,000 for a 30% interest in the venture which was to be called Jinxtor Ltd.

Victor contributed assets with a fair value of $2,000,000 (including $200,000 in cash) for its 70% stake in Jinxtor.

Jinxtor reported a net income of $3,000,000 for 2020. John's plant and equipment were estimated to provide an additional 5 years of utility to Jinxtor. The transactions set out above were considered to have commercial substance.

At what amount would John record its initial investment in Jinxtor?

Reference no: EM133022869

Questions Cloud

What is your? company market? debt-equity ratio : Your company has enterprise value of ?$700 ?million, excess cash of ?$36 ?million, 17 million shares? outstanding, What is your? company's market? debt-equity r
What are the primary benchmarking approaches : What are the primary benchmarking approaches? How can productivity be measured if an industry standard cannot be found
What is the present value of the contract : A contract requires lease payments of $700 at the beginning of every month for 6 years. What is the present value of the contract
How much is her taxable income : She had private insurance from 1 January 2021 and a HELP debt of $20,000. How much is her taxable income
At what amount would John record its initial investment : Victor contributed assets with a fair value of $2,000,000 (including $200,000 in cash) for its 70% stake in Jinxtor. At what amount would John record investment
What change in NWC occurs at the end of year one : The tax rate is 21 percent and the required return on the project is 10 percent. What change in NWC occurs at the end of year 1
What will the cash flows for this project be : If your cost of capital is 10 percent and your firm faces a 21 percent tax rate, what will the cash flows for this project be
Determine what rate of return must be earned : Determine what rate of return must be earned on the proceeds to the corporation so there will be a 10 percent increase in earnings per share during the year
What elements must a plaintiff prove : What elements must a plaintiff prove to be successful in action against an auditor for negligence

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd