Hw Es Week 1

Chapter 1-Problem 1 - When an investor uses the virtue method to account for investments in habitual stock, cash dividends received by the investor from the investee should be recorded as...


bookman Answer: A import from the investors share of the investees profits.
Dividend income.
A deduction from the stockholders equity account, dividends to stockholders.
A deduction from the investment account.


Points Received: 10 of 10
Comments:



2. Question : Chapter 1-Problem 3 - How will the investor report this agitate? (Note: the full nous can be found in the textbook on page 28)


Student Answer: A cumulative effect of an accounting change is shown in the underway income statement.
No change is recorded; the equity method is apply from the date of the new acquisition.
A retrospective adjustment is make to restate all prior years using the equity method.
Sisk has the option to choose the method to show this change.


Points Received: 10 of 10
Comments:



3. Question : Chapter 1-Problem 5 - What is the equity method symmetry of Wilkinsons Investment in Bremm, Inc., at December 31, 2009? (Note: the full question can be found in the textbook on page 28)


Student Answer: $728,000.




$748,000.
$756,000.
$776,000.
Instructor Explanation: science worth $700,000
Income accruals: 2008â€"$170,000 × 20% 34,000
2009â€"$210,000 × 20% 42,000
Amortization (below): 2008 (10,000)
Amortization: 2009 (10,000)
Dividends: 2008â€"$70,000 × 20% (14,000)
2009â€"$70,000 × 20% (14,000)
Investment in Bremm, December 31, 2009 $728,000
Acquisition price $700,000
Bremms net assets acquired ($3,000,000 × 20%) (600,000)
Patent $100,000
Annual amortization (10 year life) $10,000




Points Received: 10 of 10
Comments:



4. Question : Chapter 1-Problem 9 - What amount of unrealized...If you want to get a full essay, run it on our website: Ordercustompaper.com



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