Calculate the balance in squeak investment

Assignment Help Accounting Basics
Reference no: EM133153187

Question - On January 1, 2020, Squeak Inc. paid $900,000 to purchase 30% of Pip Inc.'s outstanding voting shares. On the date of acquisition, Pip's net assets were valued at $3,900,000. The full purchase price discrepancy was allocated to Plant & Equipment, which had a remaining useful life of 10 years. Pip's earned $150,000 in both 2020 and 2021. Pip paid dividends of $20,000 and $10,000 during 2020 and 2021, respectively. Pip declared dividends of $10,000 and $10,000 during 2020 and 2021, respectively. Squeak Inc. has significant influence over Pip Inc. and uses the equity method. Calculate the balance in Squeak's Investment in Pip account as at December 31, 2021.

Reference no: EM133153187

Questions Cloud

Impact of social media on the provision of mis : With the aid of relevant examples, evaluate the current impact and potential impact of social media on the provision of MIS.
Bonus recommendation assignment : Assume that you have $10,000 in bonus money to be distributed among your management team (not including yourself.) Allocate the bonus among your team members (n
Relationship between business and political parties : What is the relationship between business and political parties?
Provision of case management for this client group : Discuss the different stages of the case management process and Illustrate ability to co-ordinate case management in a complex and diverse environment
Calculate the balance in squeak investment : Squeak Inc. has significant influence over Pip Inc. and uses the equity method. Calculate the balance in Squeak's Investment
Components in human resource management : Describes the following components in human resource management: human resource planning job analysis
Contrast important market considerations for canada : Compare and contrast important market considerations for Canada against those in the domestic market. Explain the similarities, differences, and considerations
Calculate cost of goods sold and remaining inventory : Then they sold 3 units on May 8Ith for $10 each. Calculate cost of goods sold and remaining inventory under each method below a. FIFO b. LIFO
Identify an organization that initiated a project : Identify an organization that initiated a project in response to COVID-19. Then identify the project initiation force(s) at work that caused the organization to

Reviews

Write a Review

Accounting Basics Questions & Answers

  What rate would you expect to see on treasury bill

Suppose the real rate is 2.6 and the inflation rate is 4.2 percent. What rate would you expect to see on Treasury bill

  What is the preferred dividend per share

Prepare the journal entry to close net income for the year to retained earnings. Net income was $500,000. What is the preferred dividend per share

  Discuss what is total average cost per unit

A companys costs are shown below. What is total average cost per unit

  Compute the tax payable by Ex Ltd

The subsidiary had paid a total dividend of $120,000 and had received a dividend refund from non-eligible RDTOH of $18,000. Compute the Part IV tax payable

  Determine the amount to be received by bb

Sales for the period were as follows: BB, P170,000; WW, P260,000; FF, P60,000. Determine the amount to be received by BB

  Carmack company has credit sales of 26 million for year

carmack company has credit sales of 2.6 million for year 2011. on december 31 2011 the companys allowance for doubtful

  What is the ethical dilemma you face

What is the ethical dilemma you face? What are the ethical considerations? Consider your options and responsibilities as assistant controller

  Prepare entries on Lawton Co books related to transactions

Prepare the entries on Lawton Co.'s books related to the transactions that occurred on January 10, February 12, and March 10. (Omit cost of goods sold entries.)

  What firm margin of safety ratio and in quantity would be

Suppose the Firm's target net income for the coming year is 20,000 K.D., then the firm's margin of safety ratio and in quantity would be respectively as follows

  Determine the ratio of cash to monthly cash expenses

Determine the ratio of cash to monthly cash expenses as of December 31, 2008, 2007, and 2006. Round to one decimal place

  What is the appropriate amount of cost

What is the appropriate amount of cost to be reported in Renter Co.'s balance sheet (at the time the lease was signed) with respect to this asset

  What amount must ryan gosling include in income this year

At year-end the Necrotising Fasciitis shares were worth $32 per share. What amount must Ryan Gosling include in income this year

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!

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