Determine the amounts related to the investment

Assignment Help Accounting Basics
Reference no: EM132694996

Question - On January 2, 2021, Miller Properties paid $28 million for 1 million shares of Marlon Company's 6 million outstanding common shares. Miller's CEO became a member of Marlon's board of directors during the first quarter of 2021.

The carrying amount of Marlon's net assets was $117 million. Miller estimated the fair value of those net assets to be the same except for a patent valued at $36 million above cost. The remaining amortization period for the patent is 10 years.

Marlon reported earnings of $54 million and paid dividends of $6 million during 2021. On December 31, 2021, Marlon's common stock was trading on the NYSE at $27.50 per share.

Required - Assume Miller accounts for its investment in Marlon using the equity method. Ignoring income taxes, determine the amounts related to the investment to be reported in its 2021.

Reference no: EM132694996

Questions Cloud

What is Bryce basis in the distributed assets : Bryce's basis in the Markit Partnership is $60,790. In a proportionate liquidating distribution, What is Bryce's basis in the distributed assets
Relationship between suicide and depression from text : Based on what you learned about the relationship between suicide and depression from the text,
Prepare entries for falk to record the lease asset : Prepare entries for Falk to record the lease asset and obligation at January 1, and the $110,400 straight-line amortization at December
Importance of quality control in supply chain management : What is the Importance of Quality Control in Supply Chain Management?
Determine the amounts related to the investment : Assume Miller accounts for its investment in Marlon using the equity method. Ignoring income taxes, determine the amounts related to the investment
Changing trends in suicide and perceptions of intimacy : Summarize the case you identified in the e-activity and identify the type of suicide. Then, examine the role that social media played.
Give a succinct overview of the global company : Imagine you work for one of the following global companies:
Prepare the appropriate journal entry for each transaction : Prepare the appropriate journal entry for each transaction or event during 2021, as well as any adjusting entries necessary at year-end
List five common registration errors : List five common registration errors that affect the revenue cycle.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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