Explain how must dermot account for the change to the equity

Assignment Help Financial Accounting

Reference no: EM13130203

On January 1, 2009, Dermot Company purchased 15% of the voting common stock of Horne Corp. On January 1, 2011, Dermot purchased 28% of Horne's voting common stock. If Dermot achieves significant influence with this new investment, how must Dermot account for the change to the equity method?

Reference no: EM13130203

Questions Cloud

Explain how much cost in total would be allocated : How much cost, in total, would be allocated to the Business Development activity cost pool? Explain how much cost, in total, would be allocated to the Other activity cost pool?

Current ratio-quick ratio-working capital : As of December 31, 2010, Walton Corporation had a current ratio of 1.84, quick ratio of 1.45, and working capital of $18,000. The company uses a perpetual inventory system and sells merchandise for more than it cost.

Participate in the discussion activity : Orced sterilization is possibly one of the greatest affronts to individual autonomy, as the permanent impairment of one’s ability to reproduce not only robs the individual of their natural ability to procreate, but denies them a future genetic l..

What was the total actual cost of the direct materials : Based on the information in question #1 what was the total standard cost of direct materials allowed during May?

Explain how must dermot account for the change to the equity : If Dermot achieves significant influence with this new investment, explain how must Dermot account for the change to the equity method?

Realization of the gain on the sale of land : On November 8, 2006, Power Corp. sold land to Wood Co., its wholly owned subsidiary. The land cost $61,500 and was sold to Wood for $89,000. From the perspective of the combination, when is the gain on the sale of the land realized?

Computing percentage of total assets : What percentage of total assets was composed of current assets? Total Assets 2004 was $53,902

What limits are placed on the selection of a tax year : What limits are placed on the selection of a tax year of an S corporation? How do these limits differ from those applicable to C corporations and partnerships?

Probability that vice-presidents not invitged to any games : One of the three vice-presidents has not been invitged to attend any of the last four games. what is the probability that this could happen?

User Account

All Pages