How much difference would there have been

Assignment Help Accounting Basics
Reference no: EM133005181

Question - On January 1, 2020, Hemingway Co. acquired all of the common stock of Crotec Corp. For 2020, Crotec earned net income of $375,000 and paid dividends of $200,000. Amortization of the patent allocation that was included in the acquisition was $8,000.

How much difference would there have been in Hemingway's income with regard to the effect of the investment, between using the equity method or using the initial value method of internal recordkeeping?

Reference no: EM133005181

Questions Cloud

Prepare journal entries to account for lease transaction : Prepare the journal entries to account for the lease transaction in the books of Bill Ltd, at 1 July 2020 and 30 June 2021
What is the approximate yield rate : Question - A $15320, 8% bond with semi-annual coupons redeemable at par in 5 years is purchased at 102.5. What is the approximate yield rate
What will you pay for a share today : Antiques R Us is a mature manufacturing firm. The company just paid a dividend of $11.40, what will you pay for a share today
What is the capital expenditure : Lynda Inc purchased a piece of equipment with a purchase price of $30,000. Additional costs include transportation costs $400, What is the capital expenditure
How much difference would there have been : How much difference would there have been in Hemingway's income with regard to the effect of the investment, between using the equity method
What constant growth rate in dividends : What constant growth rate in dividends is expected for a stock valued at $60 if next year's dividend is forcast at $4, and the appropriate discount rate is 8%
Determine the entries to record the transactions : Axie Company sells new automobiles. A new Escapade costing P700,000 was sold on October 1, 2020. Determine the entries to record the transactions
What will happen to total revenue : You have been informed by the landlord that the rent on the shop front will increase to $45,000 per year. What will happen to total revenue
Identify three lapses in the hr department control : Identify three (3) lapses in the H.R. Department's control environment and explain the risks that each lapse presents

Reviews

Write a Review

Accounting Basics Questions & Answers

  How do find the estimated cost of the ending inventory

Find the estimated cost of the ending inventory, assuming the gross profit rate is 35%. At May 31, Bramble Company has net sales of $350,000

  How much interest will be earned over the six years

How much would Katrina have in her account at the end of six years if she earns 12% on the investment? How much of this would be interest earned during the six years?

  What should be reported as total intangible assets

In the preparation of Banner's balance sheet as of December 31, 2004, what should be reported as total intangible assets

  Compute and show journal entries necessary to account

Compute and Show journal entries necessary to account for all the above transactions and events up to 1 July 2023, in accordance with AASB 116

  Prepare the appropriate adjusting entry for vacations

Prepare a journal entry that summarizes 2019 wages and the payment for 2018 vacations taken in 2019. Prepare the appropriate adjusting entry for vacations

  Journalize the entries for July and November

Journalize the entries for July 12 and November 18, assuming that the common stock is to be credited with the stated value

  What would be the increase or decrease in profit

Should HJM modify the existing assembly? What would be the increase/decrease in profit if HJM modifies the assembly

  What is howard excess business loss for the year

His proprietorship generates gross income of $210,000 and deductions of $580,000. What is Howard's excess business loss for the year

  List and briefly explain four of the five differences

list and briefly describe four of the five differences between managerial accounting and financial

  Prepare the stockholders equity section of the balance sheet

Prepare the stockholders' equity section of the balance sheet at December 31, 2017. Declared and paid a cash dividend of $84,700

  Why are graphical representations of processes prepared

Why are graphical representations of processes prepared? What do BPDs and flowcharts show in common? How do BPDs and flowcharts differ

  Calculate future value of ordinary annuity

James Smith has a 4 year ordinary annuity that 1000 per year and has an interest rate of 6%. Calculate future value of ordinary annuity

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