Illustrate what is the income reported by dodge

Assignment Help Financial Accounting

Reference no: EM13128617

Dodge, Incorporated acquires 15% of Gates Corporation on January 1, 2011, for $105,000 when the book value of Gates was $600,000. During 2011 Gates reported net income of $150,000 and paid dividends of $50,000. On January 1, 2012, 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 2011 but Dodge has deemed it necessary to change to the equity method after the second purchase. During 2012 Gates reported net income of $200,000 and reported dividends of $75,000.

What is the income reported by Dodge for 2011 and 2012 with regard to the Gates investment?

Reference no: EM13128617

Questions Cloud

Corporations conducting performance measurement : What are the issues and complications that may arise when multinational corporations conduct performance measurement and comparisons among subsidiaries located in different countries?

What amount in september would excom debit product warranty : If 5% typically need to be replaced over the warranty period and one is actually replaced during September, for what amount in September would Excom debit Product Warranty Expense?

Find sample proportion of women who died before christmas : Calculate the sample proportion of women who died in the week before Christmas. (Round your answer to three decimal places.)

Depreciation on the concession stand : After using the concession stand for 4 years, Six Flags determines that the building will remain useful for only 2 more years. Record Six Flags' depreciation on the concession stand for year 5 by the straight line method.

Illustrate what is the income reported by dodge : During 2012 Gates reported net income of $200,000 and reported dividends of $75,000. Illustrate what is the income reported by Dodge for 2011 and 2012 with regard to the Gates investment?

Compare and contrast an income statement : Compare and contrast an income statement and a balance sheet. What do they measure? Why would a marketing manager find the income statement more useful than the balance sheet?

How many professors anthropologist sample to get average : The mean number of books each professor has. How many professors must the anthropologist sample to obtain an average accurate to within 14 books per professor?

Projects having normal cash flows : Ahyee Corp. is considering two equally risky, mutually exclusive projects, both of which projects have normal cash flows. Project A has an IRR of IRR of 11%, while Project B's IRR is 14%.

Illustrate what is brett outside tax basis in his llc : The building has an FMV of $45,000, an adjusted basis of $30,000, and is secured by a $35,000 nonrecourse mortgage that the business LLC will assume. Illustrate what is Brett's outside tax basis in his LLC interest?

User Account

All Pages