Reference no: EM132967065
On January 1, 2018, Hanson Inc. purchased 54,000 voting shares out of Marvin Inc.'s 90,000 outstanding voting shares for $240,000. On that date, Marvin's common shares and retained earnings were valued at $60,000 and $90,000, respectively. Marvin's book values approximated its fair values on the acquisition date with the exception of the company's equipment, which was estimated to have a fair value that was $50,000 in excess of its recorded book value. The equipment was estimated to have a useful life of eight years. Both companies use straight line amortization exclusively.
On January 1, 2019, Hanson purchased an additional 9,000 shares of Marvin Inc. on the open market for $45,000. Marvin's net income and dividends for 2018 and 2019 are as follows:
2018 2019
Net Income $60,000 $80,000
Dividends $9,000 $14,000
Marvin's goodwill suffered an impairment loss of $5,000 during 2018. Hanson Inc. uses the equity method to account for its investment in Marvin Inc.
Problem a. What is the amount of goodwill arising from Hanson's January 1, 2018 acquisition?
Problem b. What is the amount of the the non-controlling interest as a result of the Hanson's second purchase?
Problem c. What is the amount of the acquisition differential amortization for 2018 (excluding goodwill impairment)?
Problem d. What would be the amount of the unamortized acquisition differential (excluding goodwill) at the end of 2019?
Problem e. What is the amount of the acquisition differential amortization (excluding goodwill impairment) for 2019?
Find what should be net accounts receivable for lorry co
: Lorry Co. uses aging of accounts receivable method. It had $5,000 gross accounts receivable.What should be the net accounts receivable after the two write-offs?
|
What is the market value of han co bond on january
: What is the market value (or issuing price) of Han Co. bond on January 1, 2005? Han Co. issued a $10,000, 3-year, 6% bonds on January 1, 2005.
|
Prepare an income statement for Calvin Company
: Prepare an income statement for Calvin Company for 2024 using the contribution margin format assuming total fixed costs for the company were $420,000
|
Should T J max Company buy or lease the equipment
: T J max Company is considering an acquisition of a transport equipment that costs $250,000. Should T J max Company buy or lease the equipment
|
What would be the amount of the unamortized acquisition
: Hanson Inc. purchased 54,000 voting shares, What would be the amount of the unamortized acquisition differential (excluding goodwill) at the end of 2019?
|
Record the selected transactions for January
: Record the following selected transactions for January in a two-column journal ? identifying each entry by letter
|
Which statement is true for party city
: The market value of pumpkin baby costumes dropped to $4. Party City regards any amount lower than $4,000 as not material. Which statement is true?
|
What would be the recognizable gain on january arising
: What would be the recognizable gain on January 1, 2020 arising from John's investment in Jinxtor? John Inc and Victor Inc. formed a joint venture on January.
|
Improve the efficiency and effectiveness of operations
: How could the data warehouses be used to help the police department to improve the efficiency and effectiveness of its operations?
|