Outstanding voting common stock of company

Assignment Help Financial Accounting

Reference no: EM131257392

On January 1, 2013, Company A purchased 36% of the outstanding voting common stock of Company B for $300,500. The book value of the acquired shares was $275,600. The excess of cost over book value is attributable to an intangible asset on Company B's books that was undervalued and had a remaining useful life of five years. For the year ended December 31, 2013, Company B reported net income of $125,400 and paid cash dividends of $26,000. What is the carrying value of Company A's investment in Company B at December 31, 2013?

All methods and formulas used must be in concordence with GAAP standards, also please show how you got your numbers and no calculator or excel tricks, please.

Reference no: EM131257392

Questions Cloud

Active market likely to exist for intangible assets : What is an active market, and is an active market likely to exist for intangible assets such as brand names or development related expenditures?

Calculate the present value of the minimum lease payments : Burt Ltd enters into a non-cancellable five-year lease agreement with Earnie Ltd on 1 July 2015. The lease is for an item of machinery that, at the inception of the lease, has a fair value of $1294384. Determine the rate of interest implicit in the l..

Determine the margin of safety in units-sales dollars : Information concerning a product produced by Ender Company appears here: Determine the margin of safety in units, sales dollars, and as a percentage?

Property tax on an apartment complex assessed : The property tax in a certain country varies directly as assessed valuation. If a tax of $1,575 is charged on a single-family home assessed at $84,000, determine the property tax on an apartment complex assessed at $257,600.

Outstanding voting common stock of company : On January 1, 2013, Company A purchased 36% of the outstanding voting common stock of Company B for $300,500. The book value of the acquired shares was $275,600. All methods and formulas used must be in concordence with GAAP standards, also please sh..

Determine the sales volume in dollars : Lindo Company incurs annual fixed costs of $54,180. Variable costs for Lindo’s product are $27.09 per unit, and the sales price is $43.00 per unit. Lindo desires to earn an annual profit of $62,000. Determine the sales volume in dollars and units req..

Pretax earnings increase from this lease : On December 31, 2013, Corporation A leased equipment to Company B for a five-year period. The annual lease payment, excluding executory costs is $42,000. The interest rate for this lease is 10%. The payments are due on December 31 of each year. For t..

Determine the break-even point in units and dollars : Agassi Corporation sells products for $28 each that have variable costs of $11 per unit. Agassi’s annual fixed cost is $385,900. Determine the break-even point in units and dollars.

Prepare journal entry to record the issuance of the shares : ICOT Industries issued 16 million of its $1 par common shares for $444 million on April 11. Legal, promotional, and accounting services necessary to effect the sale cost $2 million. Prepare the journal entry to record the issuance of the shares.

User Account

All Pages