Course hero on january 1 2013 pierce inc purchased 15000 shares of marion company for $435,0002/20/2024 ![]() ![]() However, Pine retains the ability to significantly influence the investee. ![]() Pine sold 15,200 shares of Seacrest on August 1, 2015, for $165,354 in cash. During 2015, Seacrest reports net income of $558,000 and a $228,000 other comprehensive loss, both incurred uniformly throughout the year. Excess patent cost amortization of $22,800 is still being recognized each year. Since the date of acquisition, the equity method has been properly applied, and the carrying amount of the investment account as of January 1, 2015, is $549,100. ![]() Pine Company owns 40 percent (76,000 shares) of Seacrest, Inc., which it purchased several years ago for $423,700. Using the equity method, what amounts appear in Pierce's 2015 income statement? However, the company retains the ability to significantly influence Marion. Dividends are declared and paid in the same period. These amounts are assumed to have occurred evenly throughout these years. Marion reports net income and dividends as follows. Any excess of cost over book value acquired for either investment was attributed solely to goodwill. The original 10 percent investment was categorized as an available-for-sale security. This latest purchase gave Pierce the ability to apply significant influence over Marion. ![]() On January 1, 2014, Pierce purchased an additional 21,000 shares (20 percent) for $661,500. On January 1, 2013, Pierce, Inc., purchased 10,500 shares of Marion Company for $283,500, giving Pierce 10 percent ownership of Marion. ![]()
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