What amounts appear on Monroe income statement

Assignment Help Accounting Basics
Reference no: EM132762969

Question - On January 1, 2018, Monroe, Inc., purchased 12,150 shares of Brown Company for $250,300, giving Monroe 9 percent ownership of Brown. On January 1, 2019, Monroe purchased an additional 29,700 shares for $590,000. This latest purchase gave Monroe the ability to apply significant influence over Brown. The original 9 percent investment was categorized as an available for-sale security. Any excess of cost over book value acquired for either investment was attributed solely to goodwill.

Brown reports net income and dividends as follows. These amounts are assumed to have occurred evenly throughout these years.

 

Net Income  (Net Loss)

Cash Dividends (paid quarterly)

2018

$276,000

$168,000

2019

264,000

300,000

2020

(132,000)

100,000

On April 1, 2020, Monroe sells 5% ownership of Brown for $18 per share. Despite this sale, the company retains the ability to significantly influence Brown. Using the equity method what amounts appear on Monroe's 2020 income statement?

Reference no: EM132762969

Questions Cloud

How many months will it take you to pay off account balance : You have made arrangements to pay off the bill in installments of $380 per month, How many months will it take you to pay off the account balance
What the cash paid to the seller is : An investor purchased a bond as a long-term investment between interest dates at a premium. At the purchase date, the cash paid to the seller is
Discuss the accrual of a loss contingency : Discuss the accrual of a loss contingency and/or type of disclosure necessary (if any) and the reason(s) such a disclosure is appropriate for each of the three.
Calculate materials price and quantity variances for quarter : During the quarter ended December 31 the company manufactured 8,000. Calculate the materials price and quantity variances for the quarter.
What amounts appear on Monroe income statement : Despite this sale, company retains the ability to significantly influence Brown. Using the equity method what amounts appear on Monroe's 2020 income statement
Determine the 1-day bod and ultimate bod for a wastewater : Determine the 1-day BOD and ultimate BOD for a wastewater whose BOD5 at 20°C is 200 mg/L. The reaction constant k is 0.23/day.
Determine how much marcy to contribute to retirement fund : Time until retirement (in years) 18. How much does Marcy need to contribute to her retirement fund at the end of each year in order to fund her retirement?
Explain in detail using relevant tax laws : Calculate Total Assessable Income, Taxable Income, Tax Liability, Medicare Levy and Medicare Levy Surcharge, if applicable, for the tax payer
What is the implied standard deviation of daily yield change : A mean historical change in daily yields of 0.0 percent what is the implied standard deviation of daily yield changes measured in basis points?

Reviews

Write a Review

Accounting Basics Questions & Answers

  Calculate the metlock days in inventory

Metlock, Inc. at December 31, 2017: beginning inventory $79000; ending inventory $134000; Calculate the Metlock days in inventory (rounded) in 2017

  What exactly is a contingent liability

What exactly is a contingent liability? Can you provide an example and also indicate when contingent liabilities have to be recognized in a company.

  Select a current price that you have seen or paid recently

to complete the following assignment go to this weeks final project link in the left navigation. focus of the final

  Fixed costs remain constant at 200000 per month during

fixed costs remain constant at 200000 per month. during high-output months variable costs are 160000 and during

  Rose wilson is entering her senior year as an accounting

rose wilson is entering her senior year as an accounting major and has a number of options for her summer break. her

  Prepare a multiple-step income statement for 2013 including

cemptex corporation prepares its statement of cash flows using the indirect method to report operating activities. net

  Prepare a 2011 statement of stockholders equity

The Cleaning Authority provides janitorial services for commercial customers. On December 31, 2010, the credit balance of the Common Stock and Retained Earnings accounts were $12,000 and $5,500, respectively. During 2011, the company issued $4,200..

  Journalize the entry to record the write-off

Journalize the entry to record the write-off, assuming that (a) the direct write-off method is used. (b) the allowance method is used

  Which is not a general characteristic of year-end published

Which is not a general characteristic of year-end published accounts? The financial information they contain is the bare minimum required by the companies act

  Discuss whether the changes described in each of the cases

The company disposed of one of the two subsidiaries that had been included in its consolidated statements for prior years.

  Compute the company cm ratio and its break-even point

Sales (13,000 units × $30 per unit) $390,000. Compute the company's CM ratio and its break-even point in unit sales and dollar sales

  What is the required return for stock

What is the required return for stock if the market return is 8%, the risk free rate is 1% and the beta for the stock is 1.2? The response must be typed.

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