Q: Several years ago, Einstein, Inc., bought 40 percent of
Several years ago, Einstein, Inc., bought 40 percent of the outstanding voting stock of Brooks Company. The equity method is appropriately applied. On August 1 of the current year, Einstein sold a por...
See AnswerQ: Matthew, Inc. owns 30 percent of the outstanding stock of
Matthew, Inc. owns 30 percent of the outstanding stock of Lindman Company and has the ability to significantly influence the investee’s operations and decision making. On January 1, 2018, the balance...
See AnswerQ: On December 31, 2016, Akron, Inc. purchased 5
On December 31, 2016, Akron, Inc. purchased 5 Percent of Zip Company’s common shares on the open market in exchange for $16,000. On December 31, 2017, Akron, Inc., acquires an additi...
See AnswerQ: Belden, Inc. acquires 30 percent of the outstanding voting shares
Belden, Inc. acquires 30 percent of the outstanding voting shares of Sheffield, Inc. on January 1, 2017, for $312,000, which gives Belden the ability to significantly influence Sheffield. Sheffield ha...
See AnswerQ: Harper, Inc. acquires 40 percent of the outstanding voting stock
Harper, Inc. acquires 40 percent of the outstanding voting stock of Kinman Company on January 1, 2017, for $210,000 in cash. The book value of Kinman’s net assets on that date was $400,000, although o...
See AnswerQ: On January 1, 2018, Pine Company owns 40 percent (
On January 1, 2018, Pine Company owns 40 percent (40,000 shares) of Seacrest, Inc., which it purchased several years ago for $182,000. Since the date of acquisition, the equity method has been properl...
See AnswerQ: What is a control premium and how does it affect consolidated financial
What is a control premium and how does it affect consolidated financial statements?
See AnswerQ: On July 1, 2016, Killearn Company acquired 88,000
On July 1, 2016, Killearn Company acquired 88,000 of the outstanding shares of Shaun Company for $13 per share. This acquisition gave Killearn a 25 percent ownership of Shaun and allowed Killearn to s...
See AnswerQ: On January 1, 2017, Fisher Corporation purchased 40 percent (
On January 1, 2017, Fisher Corporation purchased 40 percent (80,000 shares) of the common stock of Bowden, Inc., for $982,000 in cash and began to use the equity method for the investment. The price p...
See AnswerQ: On January 1, 2017, Stream Company acquired 30 percent of
On January 1, 2017, Stream Company acquired 30 percent of the outstanding voting shares of Q-Video, Inc., for $770,000. Q-Video manufactures specialty cables for computer monitors. On that date, Q-Vid...
See Answer
