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On December 12, 2018, an equity investment costing $80,000 was sold for $100,000. The investment was carried in the balance sheet at $75,000, and was accounted for under the equity method. An error wa...
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Fizer Pharmaceutical paid $68 million on January 2, 2018, for 4 million shares of Carne Cosmetics common stock. The investment represents a 25% interest in the net assets of Carne and gave Fizer the a...
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On January 1, 2018, Cameron Inc. bought 20% of the outstanding common stock of Lake Construction Company for $300 million cash. At the date of acquisition of the stock, Lake’s net assets had a fair va...
See AnswerQ: On July 1, 2018, Gupta Corporation bought 25% of
On July 1, 2018, Gupta Corporation bought 25% of the outstanding common stock of VB Company for $100 million cash. At the date of acquisition of the stock, VB’s net assets had a total fair value of $3...
See AnswerQ: Lance Brothers Enterprises acquired $720,000 of 3% bonds
Lance Brothers Enterprises acquired $720,000 of 3% bonds, dated July 1, on July 1, 2018, as a long-term investment. Management has the positive intent and ability to hold the bonds until maturity. The...
See AnswerQ: Tanner-UNF Corporation acquired as a long-term investment $
Tanner-UNF Corporation acquired as a long-term investment $240 million of 6% bonds, dated July 1, on July 1, 2018. Company management has the positive intent and ability to hold the bonds until maturi...
See AnswerQ: At April 1, 2019, the Food and Drug Administration is
At April 1, 2019, the Food and Drug Administration is in the process of investigating allegations of false marketing claims by Hulkly Muscle Supplements. The FDA has not yet proposed a penalty assessm...
See AnswerQ: The following selected transactions relate to contingencies of Classical Tool Makers,
The following selected transactions relate to contingencies of Classical Tool Makers, Inc., which began operations in July 2018. Classical’s fiscal year ends on December 31. Financial statements are i...
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