What transactions or event create changes in the investment

Assignment Help Accounting Basics
Reference no: EM131772192

Question -

1. Why does the equity method record dividends received from an investee as a reduction in the investment account, not as dividend income?

2. Jones Company possesses a 25 percent interest in the outstanding voting shares of Sandridge Company. Under what circumstances might Jones decide that the equity method would not be appropriate to account for this investment?

3. Smith, Inc., has maintained an ownership interest in Watts Corporation for a number of years. This investment has been accounted for using the equity method. What transactions or event create changes in the Investment in Watts Corporation account being recorded by Smith?

Reference no: EM131772192

Questions Cloud

Create a medical care index for each of the given years : Comment on how the cost of medical care has changed between 1987 and 1993, relative to the change in the Consumer Price Index, which was 113.6 in 1987.
Prepare a tabular analysis of the transactions : Prepare a tabular analysis of the transactions, utilizing the Excel spreadsheet provided
How much is the amount of gross profit for the year : The cost of goods manufactured during the year amounted to $665,000, how much is the amount of gross profit for the year
Assignment-managing change analysis of a hypothetical case : Develop a Communication Management Plan that should be used by Mercer Medical Center to effectively manage and lead the proposed change management programme
What transactions or event create changes in the investment : What transactions or event create changes in the Investment in Watts Corporation account being recorded by Smith
How much amount should give to the nephew : Suppose that you gave your niece a check for $50 on her 16th birthday in 1997 (when the CPI was 160.5). Your nephew is now about to turn 16.
Prepare general journal entries to reord the march sales : A company that uses perpetual inventory system made the following cash purchases and sales: Prepare general journal entries to reord the March 16 sales
Listed spot and futures prices of a treasury : On January 1, the listed spot and futures prices of a Treasury bond were 95.4 and 95.6. You sold $100,000 par value Treasury bonds and purchased
What will be the initial payment : The money used to purchase the annuity will earn 4.8% compounded monthly. If payments grow by 2.4% compounded monthly

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.

  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!

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