Reference no: EM132481701
Question - Konica Company acquires 40% of the voting stock of Lexmark Corporation on January 1, 2017, for $60,000,000, and treats it as an equity method investment. There were no basis differences. Lexmark reports total net income of $20,000,000 for the period 2017 - 2020, and $5,000,000 for 2021. Lexmark paid no dividends during the period 2017 - 2020 but paid $1,000,000 in dividends in 2021. The accounting year for both companies ends December 31. Lexmark sells merchandise to Konica at a markup of 30% on cost. The inventory balances held by Konica, purchased from Lexmark, are as follows.
Inventory Held by Konica; Purchased from Lexmark
December 31, 2020 $1,560,000
December 31, 2021 2,600,000
Required -
a. Calculate equity in net income of Lexmark, reported on Konica's 2021 income statement.
b. Calculate investment in Lexmark, reported on Konica's December 31, 2021 balance sheet.
|
Discuss how will the change work on the other side
: Discuss The connection between human need & what we're flogging loses almost all meaning & value. How will this change our work on the other side?
|
|
Find the interest rate implied
: Find the interest rate implied by the following combinations of present and future values:
|
|
What amount should Delta report on its income statement
: Delta Corporation has owned 45% of the voting stock of Egret Company for many years, What amount should Delta report on its 2019 income statement
|
|
Discuss expected outcomes of your implementation
: The Quality and Sustainability Paper is a practice immersion assignment designed to be completed in three sections. This is part three of the assignment.
|
|
Calculate equity in net income of Lexmark
: Konica Company acquires 40% of the voting stock of Lexmark Corporation on January 1, 2017, for $60,000,000, Calculate equity in net income of Lexmark
|
|
How will change our work on the other side
: The connection between human need & what we're flogging loses almost all meaning & value. How will this change our work on the other side?
|
|
Describe issues related to consent for treatment
: Research the definition and purpose of a privileged psychotherapy note. Prepare a privileged note that you would use to document your impressions of therapeutic
|
|
Discuss two types of media methods
: Determine how you will measure the marketing activities (i.e., what metrics will be used to determine success or failure). Discuss two types of media methods
|
|
Calculate the balance in Investment in Jake
: Grant Company acquired 40% of the voting stock of Jake Corporation on January 1, 2016, for $50,000,000. Calculate the balance in Investment in Jake
|