Prepare a schedule to show the balance

Reference no: EM13137312

On January 3, 2011, Jenkins Corp. acquired 40% of the outstanding common stock of Bolivar Co for $1,200,000. This acquisition gave Jenkins the ability to exercise significant influence over the investee. The book value of the acquired shares was $950,000. Any excess cost over the underlying book value was assigned to a patent that was undervalued on Bolivar's balance sheet. This patent has a remaining useful life of ten years. For the year ended December 31, 2011, Bolivar reported net income of $312,000 and paid cash dividends of $96,000. Required: Prepare a schedule to show the balance Jenkins should report as its Investment in Bolivar Co. at December 31, 2011.

Reference no: EM13137312

Questions Cloud

Computer security and etiquette are critical incommunication : Computer security and etiquette are critical in effective communication. Each day we must be careful to insure that our personal information is not compromised. Computer etiquette is critical for effective communication.How does proper computer etiqu..

Carry out hypothesis test to see if claim may be refuted : Carry out a hypothesis test to see if this claim may be refuted. State the null hypothesis and the alternative hypothesis that we would use for this test.

Calculate discount rate used by the lender : Columbo Co treasurer signed a note promising to pay 240000 on December 31 2010 .The proceeds of the note were 232,000 . calculate discount rate used by the lender

Conduct a hypothesis test for each sample : Conduct a hypothesis test for each sample at the 0.01 level of significance and determine what action, if any should be taken.

Prepare a schedule to show the balance : On January 3, 2011, Jenkins Corp. acquired 40% of the outstanding common stock of Bolivar Co for $1,200,000. This acquisition gave Jenkins the ability to exercise significant influence over the investee.

Correction of an error in the financial statements : Correction of an error in the financial statements of a prior period discovered subsequent to their issuance.

Calculate return on total assets : A company had net income of $450,000 in 2009 and $620,000 in 2010. The company had average total assets of $2,500,000 in 2009 and $3,000,000 in 2010. Calculate the return on total assets for 2009 and 2010. Comment on the results.

Calculate the mass : calculate the mass, in grams, at 25 degrees celcius of 30.0mL of propylene glycol, which has a density of 1.036g/mL

What amount should mateo corporation report as inventory : Merchandise costing $12,000 was being held on consignment by Traynor Company. What amount should Mateo Corporation report as inventory in its December 31, 2011, balance sheet?

User Account

All Pages