User Account

All Pages

Do you agree with the change

Assignment Help Financial Accounting
Reference no: EM133077914

Question - VV bought $20 million in equity securities from J Company. The investment is 19% of the voting common stock of the J Company, but the CFO of J company is selected from VV. VV has impact on the J Company's decision-making. VV uses an equity approach to record this investment. The balance of the J company investment in December 2021 is $20 million. Some managers argue that the impact is not significant and want to change the accounting approach to use fair value and recognize the investment gains. The J Company has zero net income in 2021, but its stock price has increased to $21.4 million. Do you agree with the change and recognize the $1.4 million gains? Prepare a journal entry?

Reference no: EM133077914

Questions Cloud

Normative ethics and meta-ethics : Explain the difference between normative ethics and meta-ethics and some examples
Compare and contrast a commercial portal : Q1: Compare and contrast a commercial portal (such as Yahoo) with corporate portal. Furthermore, compare a collaborative hub and collaborative network.
What amount of total income will Loire Corporation report : Loire Corporation purchased 1,600 ordinary shares of Comma Co. for $52,800. What amount of total income will Loire Corporation report
Shape of the distribution of the sample mean : CRA CDs Inc. wants the mean lengths of the "cuts" on a CD to be 125 seconds (2 minutes and 5 seconds). This will allow the disk jockeys to have plenty of time f
Do you agree with the change : VV bought $20 million in equity securities from J Company. Do you agree with the change and recognize the $1.4 million gains? Prepare a journal entry
Compare the competitive balance of football : Compare the competitive balance of football in the MAC Conference to the SEC. Using the HHI, calculate the frequency of championships in each league over the pa
Prepare the necessary journal entry to record the payroll : Prepare the necessary journal entry to record the payroll of Hotel Properties Inc, on February 15, 20X1
Determine the balance on october : Suppose that on January 1, 1992 Shannon decides to deposit $180 into an account at the end of each month starting at the end of this month.
What arguments would arturo tuzon manager of mining division : What arguments would Arturo Tuzon, manager of the Mining Division, make to support the transfer-pricing method that he prefers

Reviews

Write a Review

Financial Accounting Questions & Answers

  Restate net income assuming use of the average cost method

Restate net income assuming use of the average cost method since the company's inception. What inventory cost flow policy would you expect

  Eliminate most of boring work of processing routine accounts

Certified public account (CPA), Sal Colt, has discovered a way to eliminate most of the boring work of processing routine accounts receivable confirmations by contracting with the Cohen Mail Service. After the auditor has prepared the confirmations, ..

  Determine the compound amount and compound interest

Determine the compound amount and compound interest. A certain sum of money is invested for 6 years and 7 months at 8 1/2% converted.

  Calculate the amount of interest expense that will appear

On January 1, 2016, the Mason Manufacturing Company began construction of a building to be used as its office headquarters. The building was completed on September 30, 2017. Expenditures on the project were as follows: January 1, 2016 $ 1,180,000 Mar..

  What is the profit or loss associated with copper

Allocate the joint costs using the relative sales values. With these costs, what is the profit or loss associated with Copper?

  What is firm marginal cost of capital at a total investment

What is the firm's marginal cost of capital at a total investment level of $130 million? Marginal Incorporated (MI) has determined that after-tax cost of debt.

  Alfie has preferences represented by the utility function

Solve for Alfie’s optimal consumption bundle when the interest rate is r = 0.1. Does he save or borrow? Solve for Alfie’s optimal consumption bundle when the interest rate is r = 0.2. Does he save or borrow?

  Calculate the revised annual amortization

Frye Company bought machinery on January 1, 1999 at a cost of $200,000. Calculate the revised annual amortization

  What total amount should be reported as adjusting events

What total amount should be reported as "adjusting events" on December 31, 2018? The financial statements of entity were authorized for issue on March 31, 2019.

  Find what was the bay net cost of the inventory

Nike receives the money the same day. Journalize The Bay's (a) purchase and (b) cash payment transactions. What was The Bay's net cost of this inventory?

  Calculate goodwill and non-controlling interest

Prepare the amortization schedule of the acquisition differential, and calculate the consolidated net income and NCI for Year 5.

  Compute the Total Cost Function

Compute the Total Cost Function. The sales target of the Company is 500 TL next year for January. Compute the total cost and profit of January

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