Regard to the gates investment

Assignment Help Financial Accounting
Reference no: EM13864765

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. The income reported by Dodge for 2012 with regard to the Gates investment is

A. $80,000. B. $30,000. C. $50,000. D. $15,000. E. $75,000.

Reference no: EM13864765

Questions Cloud

How to help your toddler begin developing empathy : The reading for the paragraphs: How to help Your Toddler Begin Developing Empathy
Analyze basic aspects related with recruitment and selection : Students are required to analyze the crucial aspects associated with recruitment and selection which could be adopted as a best practice by other organizations.
Find the pre-equalizer weights : Find the pre-equalizer weights g(1), g(2), ....,g(ψ) using the zero forcing equalization principle. Consider a time-invariant channel with channel response as
Recorded organization having a paid-up offer : ABC Ltd. is a recorded organization having a paid-up offer capital of ' 36 crore and general stores of ' 24 crore. It cravings to make a credit of ' 10 crore to XYZ  Ltd. ABC Ltd. holds 60% of the value offers in XYZ Ltd. ABC Ltd. has as of now  made..
Regard to the gates investment : 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. During 2012 Gates reported net income o..
Based on anticipated production : Lines, Inc. applies overhead at the standard rate of $20/units, based on anticipated production of 2,000 units. If Line's actual overhead is $41,000, the overhead volume variance is
What effect will this event have on the accounting equation : Flynn Corp. which is authorized to issue 25,000 shares of no-par common stock issued 10,000 shares for 150,000. What effect will this event have on the accounting equation?
Asswin ltd. is an open restricted organization : Asswin Ltd. is an open restricted organization, fused under the Companies  Act, 1956. The Board of chiefs of the said organization has as of late chosen to  embed an article in its articles of affiliation identifying with ejection of a part  by the B..
Dividends is lower than the tax rate on compensation : Robin Corporation would like to transfer excess cash to its sole shareholder, Adam, who is also an employee. Adam is in the 28% tax bracket, and Robin is in the 34% bracket. However, Robin is considering paying Adam a $25,000 dividend because the tax..

Reviews

Write a Review

Financial Accounting Questions & Answers

  What is their average tax rate and effective tax rate

Scot and Vidia, married taxpayers, earn $240,000 in taxable income and $5,000 in interest from an investment in City of Tampa bonds. Using the U.S. tax rate schedule for married filing jointly, how much federal tax will they owe? What is their averag..

  Calculate taxable income and net income

Bateman Light began operations in 20X1. The company sometimes sells used warehouses on an instalment basis. In those cases, Bateman Light reports income in its income statement in the year of the sale, In its income tax return, though Bateman Light r..

  What projects would be hindered

What industries are most severely impacted by this increase? What projects would go forward as a result, what projects would be hindered?

  Material accounts receivable from customer

Long and Short, CPAs, were auditing Island Corporation for the year ended December 31, 2014. On January 11, 2015, a major customer of Island Corporation declared bankruptcy as the result of an uninsured loss due to a major fire in their warehouse on ..

  What should be the salvage value of the def model

What should be the salvage value of the DEF model at the end of 10 years so that you would be indifferent between the two models?

  How about withdrawal from the engagement

Why is it important to do the kind of due diligence testing and risk assessment review conducted by Cardinal & Coyote prior to determining whether to make a bid for the audit of a potential client?

  Determined with absorption costing amp direct costing1 the

determined with absorption costing amp direct costing.1. the shift in the amount of manufacturing overhead costs

  Journalize the transactions for the company

Use the Work in process inventory T-account to prepare a schedule of cost of goods manufactured for the month of June.

  Evaluate the gross profits to be identifies

Evaluate the gross profits to be identifies for each of the three years. If the outcome of the construction contract can't be reliably estimated, evaluate the gross profit for each year be?

  The initial acquisition of the pluto corp bonds

Mars investments acquired $150,000 of pluto corp., 8% bonds at their face amount on September 1, 2014. the bonds pay interest on September 1 and march 1. on march 1, 2015 mars sold $75,000 of pluto corp. bonds at 102.

  Prepare public and private accounting position

Develop a thorough understanding of accounting standards and principles and fulfill the core accounting educational requirement to sit for the CPA exam.

  Sales revenue-sales returns and allowances

Assume Kader Company has the following reported amounts: Sales revenue $510,000, Sales returns and allowances $15,000,Cost of goods sold $330,000, and Operating Expense: $110,000.

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