Determine the balance in the investment in investee account

Assignment Help Accounting Basics
Reference no: EM132463939

Question 1: On January 1, 2013, an investor purchases 10,000 common shares of an investee at $9 (cash) per share.

The shares represent 20% ownership in the investee. The investee shares are not considered ; because they do not trade on an active exchange. On January 1, 2013, the book value of the investee's assets and liabilities equals $600,000 and $150,000, respectively. On that date, the appraised fair values of the investee's identifiable net assets approximated the recorded book values. During the year ended December 31, 2013, the investee company reported net income equal to $22,500 and dividends equal to $12,000.

Question 2: Noncontrolling investment accounting (price equals book value) Assume the investor does not exert significant influence over the investee. Determine the balance in the Investment in Investee account at December 31, 2013.

a. $2,400

b. $90,000

$92,100

d. $460,500

 

Reference no: EM132463939

Questions Cloud

How do calculate the unit product cost and operating income : Explain How do you calculate the unit product cost and operating income under BOTH variable and absorption costing
Calculate the net income : Calculate the Net income / (net loss),Ending retained earnings,Total assets $ enter a dollar amount.(Enter loss using either a negative sign preceding number)
Discuss historical and contemporary migration trends : Describe and discuss historical and contemporary migration trends in a country or sub-region on the American continents including for example countries such
ENGT5112 Sustainable Buildings Assignment : ENGT5112 Sustainable Buildings Assignment Help and Solution, De Montfort University - Assessment Writing Service - describe the main impacts buildings
Determine the balance in the investment in investee account : Assume the investor does not exert significant influence over the investee. Determine the balance in the Investment in Investee account at December 31, 2013.
Calculate the gross profit percentage and inventory turnover : Calculate the gross profit percentage and inventory turnover?Which company has the highest and which has the lowest rate of inventory turnover?
What is the probability that the proportion of persons : What is the probability that the proportion of persons with a college degree will be less than 54%? Round your answer to four decimal places.
Create table that shows the impact of changing initial unit : Create a table that shows the impact of changing Initial Unit Sales on Revenue, Total Variable Costs and Total Net Income.E-Toys
What is the probability that the tire inflation : What is the probability that the tire's inflation is within the recommended range? (Round your intermediate calculations and final answer to 4 decimal places.)

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