User Account

All Pages

What is the amount of goodwill

Assignment Help Accounting Basics
Reference no: EM131565120

Problem - On January 1, 2016, Moline Co. paid $80,000 for a 20% interest in Oak Industries. Oak Industries' stockholders' equity amounted to $310,000 on that date. The excess of purchase price over book values was due to an unrecorded patent valued at $90,000 with a 10-year life. During 2016, Oak Industries reported income of $50,000 and paid dividends of $8,000. During 2017, it reported income of $60,000 and dividends of $12,000. Assume that Moline Co. has significant influence over the operations of Oak Industries.

Required:

a. What is the amount of goodwill?

b. What is Equity Income for 2016?

c. What is the balance in the Equity Investment account at December 31, 2016?

d. What is Equity Income for 2017?

e. What is the balance in the Equity Investment account at December 31, 2017?

Reference no: EM131565120

Questions Cloud

The invention of wings- synthesize it : Read the Book " The Invention of Wings" by Sue Monk Kidd.
How should alfred treat year results from these activities : Alfred has investments in three passive activities: How should Alfred treat the year 1 results from these activities
What should the audience learn from your presentation : What should the audience learn from your presentation? Discuss why you selected each visual and what you can conclude from the visuals.
Briefly describe the impact of managed care : Briefly describe the impact of managed care on the delivery of services to the customers of the organization.
What is the amount of goodwill : On January 1, 2016, Moline Co. paid $80,000 for a 20% interest in Oak Industries. What is the amount of goodwill? What is Equity Income for 2016
Explain the five-step model : Write a 300-word paper summarizing how you intend to solve the problem selected below. Explain the Five-Step Model in Ch. 3 of Thinking .
Describe an example of when inequality in type of equity : Describe an example of when inequality in this type of equity caused a problem. This may be from your own experience, or you may cite an outside source.
Calculate the past service costs : XYZ Company, a calendar-year entity, aCalculate the past service costs included in 2012 net pension expense (or revenue) under IAS 19
Provide a very brief synopsis : Post a Topic that discusses a text that you have found to be the most helpful and effective in your program of study.

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.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd