Depreciation Expense a. b. C. Straight- Units of Double-Declining-
Image transcription text Depreciation Expense a. b. C. Straight- Units of Double-Declining- Year Line Production Balance 2014 $28,000 37,380 60,000 2015 28,000 29,820 20,000 2016 28,000 16,800 4,000 23 Totals $ 84,000 $ 84,000$ 84,000 24 25 Calculations: 26 27 Straight-line method: 28 (Cost Residual Vi Years = Yearly De…
Equity method journal entries with intercompany sales of inventory
Equity method journal entries with intercompany sales of inventoryAssume that an investor owns 20% of an investee, and accounts for its investment using the equity method. At the beginning of the year, the Equity Investment was reported on the investor’s balance sheet at $480,000. During the year, the investee reported net income of $120,000 and…
Equity method journal entries (price greater than book value) An
Equity method journal entries (price greater than book value) An investor company purchases a 20% interest in an investee company, and the investor concludes that it can exert significant influence over the investee. The book value of the investee’s Stockholders’ Equity on the acquisition date is $500,000 and the investor purchases its 20% interest for…
Change from the fair value method to the equity method Assume an
Change from the fair value method to the equity method Assume an investor company acquires for $300,000 an 10% investment in the common stock of an investee company on February 15, 2021. The investor determined the common stock of the investee has a readily determinable fair value. On December 31, 2021, the fair value of…
In a standard liquidating partnership distribution, which of the
In a standard liquidating partnership distribution, which of the following is not true: Group of answer choices The assets distributed take on the partner’s outside basis. Gain is recognized for any difference between the partner’s outside basis and the inside basis of partnership assets. The partner’s outside basis will be reduced to zero.
1. During 2022, Thomas Corporation repurchased some shares of its
1. During 2022, Thomas Corporation repurchased some shares of its own common stock usingits excess cash on hand. What effect did this transaction have on 2022 stockholders’ equityand earnings per share, respectively?Stockholder’s Equity Earnings Per ShareA) Decrease No EffectB) Increase No EffectC) Decrease DecreaseD) Decrease Increase 2. Graham Company had trade accounts receivable of $450,000…
Mikey, Ronny and Waldo are equal owners of a FireHot LLC being
Mikey, Ronny and Waldo are equal owners of a FireHot LLC being treated as a partnership. FireHot uses the accrual method of accounting and is a manufacturer of matches. On June 30, 2017, FireHot has accounts receivable of $100,000, match inventory of $75,000, fixed assets with original cost basis of $90,000, accumulated depreciation of $60,000,…
Sarah is a 30% partner in the King Partnership. On January 1, King
Sarah is a 30% partner in the King Partnership. On January 1, King distributes $15,000 cash, inventory with a fair value of $20,000 (inside basis of $10,000), and a parcel of land worth $10,000 and basis of $5,000 to Sarah in complete liquidation of her partnership interest. King has no liabilities at the date of…