Journalize the entries to record these transactions

Reference no: EM132815070

Question - Forte Inc. produces and sells theater set designs and costumes. The company began operations on January 1, 20Y6. The following transactions relate to securities acquired by Forte Inc., which has a fiscal year ending on December 31, 20Y6:

Jan. 10 Purchased an influential interest in Imboden Inc. for $770,000 by purchasing 99,200 shares directly from the estate of the founder of Imboden Inc. There are 320,000 shares of Imboden Inc. stock outstanding.

Dec. 31 Received $57,000 of cash dividends on Imboden Inc. stock. Imboden Inc. reported net income of $470,000 in 20Y6. Forte Inc. uses the equity method of accounting for its investment in Imboden Inc.

Required -

1. Journalize the entries to record these transactions?

2. Should Forte Inc.'s investment in Imboden Inc. be reported at fair value on its financial statements for the year ending December 31, 20Y6?

Reference no: EM132815070

Questions Cloud

What is the equipment after-tax net salvage value : The used equipment can be sold today for $6 million, and its tax rate is 25%. What is the equipment's after-tax net salvage value

Bulimia nervosa discussing purpose : Evaluate three Please provide citations and references peer-reviewed research studies for Bulimia Nervosa discussing purpose, subjects studied, methods used, an

How much interest-on-interest would betty earn in five years : How much interest-on-interest would Betty earn in 5 years? What would be the simple interest earned on this investment in 5 years?

Health status of different populations in society : How does social stratification impact health status of different populations in society?

Journalize the entries to record these transactions : Forte Inc. uses the equity method of accounting for its investment in Imboden Inc. Journalize the entries to record these transactions

How has the copyright law evolved in educational settings : How has the copyright law evolved in educational settings? How do or should schools address the copyright or technology challenges with staff?

Prepare packers journal entries : Sheffield Corporation agrees on January 1, 2020, Prepare Packers' 2020 journal entries, assuming company uses straight-line depreciation and no salvage value.

Develop and document sustainability policies : Prepare workplace sustainability policies - Develop and document sustainability policies according to organisational processes

Different types of cohort effects in today world : Explain the four different types of cohort effects in today's world? Explain how childcare can have an effect in later development?

User Account

All Pages