What did mac corporation report as dividends for the year

Assignment Help Accounting Basics
Reference no: EM133090949

Question - Analyzing Investment Account: Equity Method - Assume that Fleetwood Inc. purchased 40% of the voting stock of Mac Corporation on January 1, 2020, for $100,000, an amount equal to 40% of Mac's book value. Assume that the fair value and book value of all net assets of Mac were the same at that time. During the year, Fleetwood Inc. debited the Investment account for $12,000 and credited the Investment account for $4,000. The ending balance of Fleetwood's Investment account is $108,000 at December 31, 2020. Assume that Fleetwood Inc. has significant influence over Mac Corporation.

Required -

1. What did Mac Corporation report as net income for the year 2020?

2. What is Fleetwood's share of Mac Corporation's net income for the year?

3. What did Mac Corporation report as dividends for the year 2020?

4. What is Fleetwood's share of Mac Corporation's dividends for the year?

Reference no: EM133090949

Questions Cloud

Implement and maintain communication networks : Develop a communication management plan according to project objectives and Identify and resolve communication and information-management system issues
What is the approximate real rate of interest : According to the approximation to the Fisher Equation, given a nominal interest rate of 5.75%. What is the approximate real rate of interest
Discuss the exchange rate system : Discuss the exchange rate system classification of the home country of the company you have chosen to study.
Why did Ryan report the phantom income : Question - Ryan had just finished a finance class and had learned about the importance time value of money. Why did Ryan report the phantom income
What did mac corporation report as dividends for the year : The ending balance of Fleetwood's Investment account is $108,000 at December 31, 2020. What did Mac Corporation report as dividends for the year 2020
Love travel stops and country stores : Two young female cashiers sued Love's Travel Stops due to sex-based abuse by customers. Who do you think won the case? The female cashiers or Love's? Why?
How many of each product should Sandhill Co produce : The company has only 1,600 direct labor hours available to commit to production of any new products. How many of each product should Sandhill Co produce
Discuss accomplishment-event or realization : Discuss an accomplishment, event, or realization that sparked a period of personal growth and a new understanding of yourself or others
How much would you expect each share to sell for today : If shareholders require a 12% return to hold the firm's shares, how much would you expect each share to sell for today

Reviews

Write a Review

Accounting Basics Questions & Answers

  The equipment is delivered when the lease is signed

Assuming the equipment is delivered when the lease is signed prepare all journal entries necessary to record the lease transaction for 2012 and the payment made in 2013.

  Has the Rand family acted properly

The Rands are successful professionals and have combined AGI of approximately $450,000. Has the Rand family acted properly

  What accounts get debited to account for the transaction

What accounts get debited and credited to account for the transaction? What is the classification of the journal entry in question?

  Compute estimated cash collections during october

Coyote Loco is a manufacturer of salsa. Compute estimated cash collections during October from credit sales

  Prepare the cash budget for july for penelope ltd

Cash disbursement for operating expenses in July was $8,000. Prepare the cash budget for July for Penelope Ltd

  Present value of gold mine

How much should Mr. Graff pay for a gold mine expected to yield an annual return of $20,000 and to have a life expectancy of 20 years, if he wants to have a 15% annual return on his investment and he can set up a sinking fund that earns 10% a year..

  Compute the springfield club return on investment

The managers of the clubs, who have authority to make investments as needed, Compute the Springfield club return on investment

  Department for the month of june

A Rosenthal Company manufactures bowling balls through two processes: Molding and Packaging. In the Molding Department, the urethane, rubber

  Discuss customers are not required to tip the waiter

Customers are not required to tip the waiter. Carey is especially attentive and friendly

  What was millikens stockholders equity as of december

What was Millikens stockholders equity as of December 31, 2006 and what was the amount of net income for 2007?

  What motivated to speak up and act

How satisfied are you? How would you like to have responded? (This question is not about rejecting or defending past actions but rather about imagining

  Marion dexter company is evaluating a proposal to purchase

Marion Dexter Company is evaluating a proposal to purchase a new machine that would cost

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