Business, 06.03.2020 23:29 kukisbae

Pell Company acquires 80% of Demers Company for $500,000 on January 1, 2014. Demers reported common stock of $300,000 and retained earnings of $210,000 on that date. Equipment was undervalued by $30,000 and buildings were undervalued by $40,000, each having a 10-year remaining life. Any excess consideration transferred over fair value was attributed to goodwill with an indefinite life. Based on an annual review, goodwill has not been impaired. Demers earns income and pays dividends as follows:

2014 2013 2012

Net Income 100000 120000 130000
Dividends 40000 50000 60000

a. Assume the Initial Value is applied. Compute Pell's investment in Demers at Dec 31, 2014.
b. Assume Equity Method is applied. Compute the non-controlling interest in Demers at Dec 31, 2016.
c. Assume Partial Equity method is applied. Compute Pell's investment in Demers at Dec 31, 2015.
d. Assume Initial Value is applied. Compute the non-controlling interest in the net income of Demers at Dec 31, 2016.

Answers: 3

Show answers

Another question on Business

Business, 22.06.2019 03:40

Electronics assembly inc. is a contract manufacturer that assembles consumer electronics for a number of companies. currently, the operations manager is assessing the capacity requirements as input into a bid for a job to assemble cell phones for a major global company. the company would assemble three models of cell phones in the same assembly cell. setup time between the phones is negligible. electronics assembly inc. operates two 8-hour shifts for 275 days per year. cell phone demand forecast (phones/year) processing time (minutes/phone) mars 47,000 19.8 saturn 35,000 20.7 neptune 7,500 16.2 a. calculate total capacity required by line. b. determine the total operating time available. c. calculate the total number of assembly cells. (round up your answer to the next whole number.)

Answers: 2

Answer

Business, 22.06.2019 06:10

Amanda works as an industrial designer

Answers: 1

Answer

Business, 22.06.2019 09:30

Stock market crashes happen when the value of most of the stocks in the stock market increase at the same time. question 10 options: true false

Answers: 1

Answer

Business, 22.06.2019 12:50

Demand increases by less than supply increases. as a result, (a) equilibrium price will decline and equilibrium quantity will rise. (b) both equilibrium price and quantity will decline. (c) both equilibrium price and quantity will rise

Answers: 3

Answer

You know the right answer?

Pell Company acquires 80% of Demers Company for $500,000 on January 1, 2014. Demers reported common...

Questions