What is the carrying amount of the investment in associate

Assignment Help Financial Accounting
Reference no: EM132859038

Question 1: On July 1, 2020, GREEN Company acquired 20% of the outstanding ordinary shares of another entity for ?5,000,000. The carrying amount of the acquired shares was ?4,000,000. The excess of cost over the carrying amount was attributable to an identifiable intangible asset which was undervalued on the investee's statement of financial position and which had a remaining useful life of 5 years. The investee reported net income of ?6,000,000 for 2020 and paid cash dividends of ?1,000,000 on ordinary shares and issued 10% stock dividend on December 31, 2020. What is the carrying amount of the investment in associate on December 31, 2020? 

Option 1: ? 5,300,000

Option 2: ? 5,800,000

Option 3: ? 5,900,000

Option 4: ? 5,400,000

Reference no: EM132859038

Questions Cloud

What amount of investment property should be reported : If the company is using the cost model what amount of investment property should be reported in the December 31, 2020 statement of financial position?
What total cost for goods should be included in inventory : These goods were received on December 31, 2020. On December 31, 2020, what total cost for these goods should be included in inventory?
How much is allocated to land and building upon initial : The date of acquisition are ?1,100,000 and ?1,650,000, respectively. How much is allocated to land and building upon initial recognition of BLUE?
What is the cost of goods sold for the year : Tulsa Company, (a merchandising co.) has the following data pertaining to the year ended December 31, 2019: What is the cost of goods sold for the year
What is the carrying amount of the investment in associate : Ordinary shares and issued 10% stock dividend on December 31, 2020. What is the carrying amount of the investment in associate on December 31, 2020?
SEE216 Analogue And Digital Electronics Assignment : SEE216 Analogue And Digital Electronics Assignment Help and Solution, Deakin University - Assessment Writing Service - Draw the logic circuit for the board
How much is the capital of C after Ds admission : A, B and C are partners with capital balances and profit and loss ratios of P50,000 (30%), How much is the capital of C after Ds admission
What amount of investment income should be reported by green : On ordinary shares and issued 10% stock dividend on December 31, 2020. What amount of investment income should be reported by GREEN for 2020?
At what amount should the notes payable be shown : At what amount should the Notes Payable be shown on the December 31, 2020 statement of financial condition of Madison Company

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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