Hw Es Week 1

Chapter 1-Problem 1 - When an investor uses the virtue method to account for investments in ordinary stock, cash dividends received by the investor from the investee should be recorded as... bookman conclude: A import from the investors share of the investees profits. Dividend income. A deduction from the stockholders truth 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 panoptic nous support be found in the casebook on summon 28) Student Answer: A accumulative effect of an accounting change is shown in the underway income statement. No change is recorded; the equity method is apply from the witness of the new acquisition. A retrospective adjustment is make to recapitulate all prior twelv emonths using the equity method. Sisk has the plectrum 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 coronation 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 cost $700,000 Income accruals: 2008$170,000 × 20% 34,000 2009$210,000 × 20% 42,000 Amortiza tion (below): 2008 (10,000) Amortization: 2! 009 (10,000) Dividends: 2008$70,000 × 20% (14,000) 2009$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 union of unrealized...If you want to get a full essay, run it on our website: OrderCustomPaper.com

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