What is peregrines investment income from serine

Assignment Help Accounting Basics

Reference no: EM131957663

Problem

Peregrine Corporation acquired an 80% interest in Serine Corporation in 2009 at a time when Serine's book values and fair values were equal to one another. On January 1, 2012, Serine sold a truck with a $55,000 book value to Peregrine for $100,000. Peregrine is depreciating the truck over 10 years using the straight-line method. The truck has no salvage value. Separate incomes for Peregrine and Serine for 2012 were as follows:

Peregrine Serine
Sales $1,800,000 $1,050,000
Gain on sale of truck 45,000
Cost of Goods Sold (750,000) (285,000)
Depreciation expense (450,000) (135,000)
Other expenses (180,000) (450,000)
Separate incomes $ 420,000 $ 225,000

What is Peregrine's investment income from Serine for 2012?

Reference no: EM131957663

Questions Cloud

Would you accept the control as working properly : You perform a nonstatistical test of control. The acceptable risk of assessing control risk. Would you accept the control as working properly? Why or why not?

Drugs used to treat diseases and conditions : List the classifications of drugs used to treat diseases and conditions of the respiratory system, and provide specific examples.

Compute the net realizable value of accounts receivable : Determine the amount of the adjusting entry for uncollectible accounts. Compute the net realizable value of accounts receivable.

What do you receive praise for at work or home : What do you receive praise for at work or home? What is something you do where you lose track of time when you are doing it?

What is peregrines investment income from serine : Peregrine Corporation acquired an 80% interest in Serine Corporation in 2009. What is Peregrine's investment income from Serine for 2012?

What barriers do you need to overcome to be successful : Reflect on your resources. What barriers do you need to overcome to be successful? Are there individuals in your personal or professional network.

Identify a problem in your organization : Identify a problem in your organization or community by describing the problem and creating an introduction to the problem.

What type of strategy did the leadership team pursue : Write a vision statement reflecting the new mission statement. What type of strategy did the leadership team at St. Mary's pursue?

Identify the competing claims of the case : Identify the competing claims of the case which mean identify what is being argued by both sides.

User Account

All Pages