Dodge incorporated acquires 15 of gates corporation on

Assignment Help Accounting Basics

Reference no: EM13586713

Dodge, Incorporated acquires 15% of Gates Corporation on January 1, 2013, for $105,000 when the book value of Gates was $600,000. During 2013 Gates reported net income of $150,000 and paid dividends of $50,000. On January 1, 2014, Dodge purchased an additional 25% of Gates for $200,000. Any excess cost over book value is attributable to goodwill with an indefinite life. The fair-value method was used during 2013 but Dodge has deemed it necessary to change to the equity method after the second purchase. During 2014 Gates reported net income of $200,000 and reported dividends of $75,000.

The balance in the investment account at December 31, 2014, is?

Reference no: EM13586713

Questions Cloud

On-the-go inc produces two models of traveling cases for : on-the-go inc. produces two models of traveling cases for laptop computers the programmer and the executive. the bags

Salina sports wear has designed a new athletic suit the : salina sports wear has designed a new athletic suit. the company plans to produce and sell 30000 units of the new

Compute the net amount of deferred income taxes to be : presented below are two independent situations related to future taxable and deductible amounts resulting from

On march 31 2013 the herzog company purchased a factory : on march 31 2013 the herzog company purchased a factory complete with machinery and equipment. the allocation of the

Dodge incorporated acquires 15 of gates corporation on : dodge incorporated acquires 15 of gates corporation on january 1 2013 for 105000 when the book value of gates was

List of types of investments proposed at least three you : you are the assistant treasurer for a company. your company has 10 million in excess cash that it does not plan to use

During may a machine malfunctioned and dumped salt into : corn meal in a continuous mass production process. corn is added at the beginning of the process. normal losses are

On december 20 2013 jamesway received a 4100 payment from a : the jamesway corporation had the following situations on december 2013.1.on december 20 2013 jamesway received a 4100

Elaines original basis in the hornbeam partnership was : elaines original basis in the hornbeam partnership was 25000. her share of the taxable income from the partnership

User Account

All Pages