Belden, inc. acquires 30 percent of the outstanding voting shares of sheffield, inc. on january 1, 2017, for $306,000, which gives belden the ability to significantly influence sheffield. sheffield has a net book value of $784,000 at january 1, 2017. sheffield's asset and liability accounts showed carrying amounts considered equal to fair values except for a copyright whose value accounted for belden's excess cost over book value in its 30 percent purchase. the copyright had a remaining life of 16 years at january 1, 2017. no goodwill resulted from belden's share purchase.
sheffield reported net income of $182,000 in 2017 and $244,000 of net income during 2018. dividends of $64,000 and $90,000 are declared and paid in 2017 and 2018, respectively. belden uses the equity method.
on its 2018 comparative income statements, how much income would belden report for 2017 and 2018 in connection with the company's investment in sheffield?
if belden sells its entire investment in sheffield on january 1, 2019, for $412,000 cash, what is the impact on belden's income? assume that belden sells inventory to sheffield during 2017 and 2018 as follows.
what amount of equity income should belden recognize for the year 2018?
Answers: 3
Other questions on the subject: Business
Business, 22.06.2019 19:30, buggamarshall85
The owner of firewood to go is considering buying a hydraulic wood splitter which sells for $50,000. he figures it will cost an additional $100 per cord to purchase and split wood with this machine, while he can sell each cord of split wood for $125. if, for this machine, design capacity is 50 cords per day, effective capacity is 40 cords per day, and actual output is expected to be 32 cords per day, what would be its efficiency?
Answers: 1
Business, 22.06.2019 19:50, leannamat2106
At the beginning of 2014, winston corporation issued 10% bonds with a face value of $2,000,000. these bonds mature in five years, and interest is paid semiannually on june 30 and december 31. the bonds were sold for $1,852,800 to yield 12%. winston uses a calendar-year reporting period. using the effective-interest method of amortization, what amount of interest expense should be reported for 2014? (round your answer to the nearest dollar.)
Answers: 2
Business, 23.06.2019 02:00, zymikaa00
Upper a fish farm raises salmon and trout. a fish farm raises salmon and trout. the marginal cost of producing each of these products increases as more is produced. draw the firm's ppf. label it ppf1. the fish farmfish farm adopts a new technology that allows it to use fewer resources to feed the salmonfeed the salmon. draw a ppf that shows the impact of the new technology. label it ppf2.
Answers: 2
Business, 23.06.2019 03:00, natalie407888
For example, the upper right cell shows that if expresso advertises and beantown doesn't advertise, expresso will make a profit of $15 million, and beantown will make a profit of $2 million. assume this is a simultaneous game and that expresso and beantown are both profit-maximizing firms. if expresso decides to advertise, it will earn a profit of $ million if beantown advertises and a profit of $ million if beantown does not advertise. if expresso decides not to advertise, it will earn a profit of $ million if beantown advertises and a profit of $ million if beantown does not advertise. if beantown advertises, expresso makes a higher profit if it chooses . if beantown doesn't advertise, expresso makes a higher profit if it chooses . suppose that both firms start off not advertising. if the firms act independently, what strategies will they end up choosing? expresso will choose to advertise and beantown will choose not to advertise. expresso will choose not to advertise and beantown will choose to advertise. both firms will choose to advertise. both firms will choose not to advertise.
Answers: 1
Do you know the correct answer?
Belden, inc. acquires 30 percent of the outstanding voting shares of sheffield, inc. on january 1, 2...
Questions in other subjects:
Mathematics, 26.06.2020 15:01
