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Kobotan [32]
3 years ago
11

An investor purchases a 30% interest in an investee company, and the investor concludes that it can exert significant influence

over the investee. The book value of the investeeâs Stockholdersâ Equity on the acquisition date is $800,000, and the investor purchases its 30% interest for $312,000. The investor is willing to pay the purchase price because the investee owns an unrecorded (internally developed) patent that the investor estimates is worth $240,000. The patent has a remaining useful life of 10 years. Subsequent to the acquisition, the investee reports net income of $180,000, and pays a cash dividend to the investor of $13,000. At the end of the first year, the investor sells the Equity Investment for $390,000.
Required:
Prepare all of the required journal entries to account for this Equity Investment during the year.

Business
1 answer:
love history [14]3 years ago
3 0
This is the answer I hope it helps you

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On January 1, 2019, Wasson Company purchased a delivery vehicle costing $47,550. The vehicle has an estimated 7-year life and a
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Answer:

$35,660

Explanation:

the depreciable value of the vehicle = $47,550 - $4,500 = $43,050

depreciation expense per mile driven = $43,050 / 105,000 miles = $0.41

depreciation expense 2019 = $0.41 x 10,500 = $4,305

depreciation expense 2020 = $0.41 x 18,500 = $7,585

accumulated depreciation = $11,890

book value = $47,550 - $11,890 = $35,660

4 0
3 years ago
The faculty member on my study abroad trip to Costa Rica has traveled there many times and is quite knowledgeable about the coun
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Answer:

B. Expert power

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I don’t really know I just need points
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why have many companies decided to adopt a socially responsible stance when they conduct their business?
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Countries that currently have low real GDPs per capita are destined to always have lower living standards than countries that cu
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Answer:

The correct answer is the option: True.

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Secondly, the living standards refers to the combination of factors that determinates the quality of life inside a certain economy, therefore that with higer level of living standards the life inside a country is better for most of the individuals within and lower living standards determinates that the life in a country is not so good as others. Moreover, <u><em>this type of measure is affected by the GDPs per capita</em></u> of the economy and therefore that a low GDPs per capita impacts in a low living standard and a high GDPs per capita determinates a high living standard.

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2 years ago
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