What balance should appear in the investment in chestnut

Assignment Help Accounting Basics

Reference no: EM133538000

Question: On January 1, 2023, Bertrand, Inc., paid $60,000 for a 40 percent interest in Chestnut Corporation's common stock. This investee had assets with a book value of $200,000 and liabilities of $75,000. A patent held by Chestnut having a $5,000 book value was actually worth $20,000. This patent had a six-year remaining life. Any further excess cost associated with this acquisition was attributed to an indefinite-lived asset. During 2023, Chestnut earned income of $30,000 and declared and paid dividends of $10,000. In 2024, it had income of $50,000 and dividends of $15,000. During 2024, the fair value of Bertrand's investment in Chestnut had risen from $68,000 to $75,000. Assuming Bertrand uses the equity method, what balance should appear in the Investment in Chestnut account as of December 31, 2024? Assuming Bertrand uses fair-value accounting, what income from the investment in Chestnut should be reported for 2024?

Reference no: EM133538000

Questions Cloud

How might sociologists explain the causes of the rising rate : How might sociologists explain the causes of the rising rates of obesity and what solutions would they propose? Apply the sociological imagination to go beyond

Budget for essential equipment : You are close to implementation of your plan, and you realize that you failed to budget for essential equipment. Discuss how you could reallocate

What characteristics may be more predictive of children : What characteristics may be more predictive of children's academic performance in their first grades of school, excluding their cognitive skills or family

Discuss some of the ways that we measure crime : Discuss some of the ways that we measure crime? Which of these methods seem to be the most useful in reaching and understanding crime/criminal behaviors?

What balance should appear in the investment in chestnut : what balance should appear in the Investment in Chestnut account as of December 31, 2024? Assuming Bertrand uses fair-value accounting, what income

What are the messages both writers are trying to send : what are the messages both writers are trying to send? What are we doing wrong? These are from 5 years ago. What things may have changed?

Pollan and others in film allude to cultural variation : Pollan and others in the film allude to the cultural variation with respect to the acceptability of intoxicants,

How large will the last depost be : How large will the last depost be? Do not round Intermediate calculations and How many years will it take you to reach your $10,000 goal

What do you think can be done to help with transitions from : Looking at post-incarceration, describe any consequences you see that follow an individual (and does it vary by race). What do you think can be done to help

User Account

All Pages