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kobusy [5.1K]
3 years ago
5

Cleaverland purchased 100% of Omaha on January 1, 2019 for $650,000. On that date, Omaha's stockholders' equity was $650,000, an

d the recognized book values of Ottowa’s individual net assets approximated their fair values. Omaha had net incomes of $150,000 and $190,000 for 2019 and 2020, respectively. The subsidiary paid dividends amounting to $30,000 in both years. Cleaverland uses the equity method to account for its pre-consolidation investment in Omaha. What was the balance in Equity Investment at December 31, 2020?
Business
1 answer:
zzz [600]3 years ago
5 0

Answer:

$960,000

Explanation:

The balance in equity investment made by Cleaverland in Omaha as at December 31, 2020 shall be determined using the following method:

Purchased price of Cleaverland as at January 1, 2019    $650,000

Net income for the year 2019                                            $150,000

Net income for the year 2020                                           $190,000

Less: Dividend paid by Omaha to Cleaverland                ($30,000)

Balance as at December 31, 2020                                   $960,000

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Answer:

B. Pass-through scheme.

Explanation:

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3 years ago
Why might a person decide to take advantage of a non-installment credit offer?
Korolek [52]
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3 years ago
The Converting Department of Hopkinsville Company had 640 units in work in process at the beginning of the period, which were 70
pav-90 [236]

Answer:

Whole units 14,320

Direct materials equivalent units 13,680

Conversion costs equivalent units 13,332

Explanation:

Calculation to Determine the number of equivalent units of production with respect to direct materials and conversion costs.

Hopkinsville Company Number of Equivalent Units of Production

WHOLE UNITS

Inventory in process, beginning 640

Started and completed 12,960

(13,600-640)

Transferred to Packing Department 13,600

(640+12,960)

Inventory in Process ending 720

Total 14,320

(13,600+720)

DIRECT MATERIALS EQUIVALENT UNITS

Inventory in process, beginning 0

Started and completed 12,960

(13,600-640)

Transferred to Packing Department 12,960

Inventory in Process ending 720

Total 13,680

(12,960+720)

CONVERSION EQUIVALENT UNITS

Inventory in process, beginning 192

[640-(640*70%)]

Started and completed 12,960

(13,600-640)

Transferred to Packing Department 13,152

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Inventory in Process ending 180

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Total 13,332

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2 years ago
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Therefore, Puffin’s E & P after taking into account the distribution of the car is $6,000.

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Answer:

Collateral

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