What amount should be recognized by Berry Corporation

Assignment Help Accounting Basics
Reference no: EM132882366

Question - Berry Corporation acquired as a long term investment for $7,000,000 a 40% interest in an investee when the fair value of the net assets was $17,500,000 on January 1, 2017. The investee has reported the following net losses:

2017 - 5,000,000

2018 - 7,000,000

2019 - 8,000,000

2020 - 4,000,000

Berry Corporation made cash advances of $2,000,000 to the investee on January 1, 2019. On December 31, 2020, it is not expected that Berry Corporation will provide further financial support for the investee. Assuming in 2021, the investee earned a net income of $3,000,000, what amount should be recognized by Berry Corporation as its share in the 2021 net income of the investee?

Reference no: EM132882366

Questions Cloud

Describe the training delivery methods : 5-7 slides with speaker notes with a couple hundred words per slide (excluding title and reference slides)
Canadian organizational behaviour by mcshane tasa and steen : Wilson Bros is known for its incredibly rapid decision making process. It is one of their major competitive advantages to be able to go from product conception
What is the residual income for the division : The Magnolia Company's Division A has income from operations of $80,000 and assets of $400,000. What is the residual income for the division
Streamlining of operations and downsizing : You are the HR manager of renowned hotel chain in India. In the aftermath of the Covid Crisis, business has been slow and best course of action at this point se
What amount should be recognized by Berry Corporation : Assuming in 2021, the investee earned a net income of $3,000,000, what amount should be recognized by Berry Corporation
Developing a new employee retention strategy : Assume the role of a human resource manager tasked with developing a new employee retention strategy.
What can hr departments do to increase success of expatriate : In the past, a large share of expatriate managers from Canada have returned home before successfully completing their international assignments.
Design of a new product-tool or piece of equipment : You are the primary Health & Safety professional at a manufacturing plant and are also responsible for the facility Ergonomics program (including in the office)
How does covid-19 affect human resources management : How does Covid-19 affect Human Resources Management?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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