Perfect Corporation acquired 70 percent of Storm Company's shares on December 31, 20X8, for $140,000. At that date, the fair value of the noncontrolling interest was $60,000. On January 1, 20X0, Perfect acquired an additional 10 percent of Storm's common stock for $32,500. Summarized balance sheets for Storm on the dates indicated are as follows: Dec 31
20X8 20X9 20X0
Cash $25,000 35,000 50,000
Accounts Receivable 30,000 45,000 80,000
Inventory 45,000 60,000 70,000
Buildings and Equipment 200,000 180,000 160,000
Total Assets $300,000 $320,000 $360,000
Accounts Payable $40,000 35,000 40,000
Notes Payable 60,000 60,000 60,000
Common Stock 100,000 100,000 100,000
Retained Earnings 100,000 125,000 160,000
Total Liabilities
and Equities $300,000 $320,000 $360,000
Storm paid dividends of $10,000 in each of the three years.
Perfect uses the fully adjusted equity method in accounting for its investment in Storm and amortizes all differentials over 5 years against the related investment income. All differentials are assigned to patents in the consolidated financial statements. Based on the preceding information, what was the balance in Perfect's Investment in Storm Company Stock account on December 31, 20X0?
A. $211,500
B. $218,000
C. $216,000
D. $173,000
Answers: 1
Other questions on the subject: Business
Business, 21.06.2019 21:00, pinkmoonlight
You decide that structural changes must be made at holden evans immediately to deal with the additional product lines. equipment and employees will have to be moved around to optimize production of all of the products in house. this shouldn't be too difficult because many of the vitamins and supplements are produced using similar processes. you have several options available to facilitate this process. which of the following methods do you think is the best choice? select an option from the choices below and click submit. because the changes may result in the loss of several key employees, you hire outside consultants who specialize in hr law. this way any employee terminations will not result in lawsuits. you select an outside consulting firm that your company has never worked with before, but it has a reputation for using new technology in product lines that are similar to yours. you select several trusted managers to facilitate the transition of operations from overseas. these individuals can gather information and also smooth any rough spots that may occur.
Answers: 3
Business, 22.06.2019 20:30, anilauferc
You are in the market for a new refrigerator for your company’s lounge, and you have narrowed the search down to two models. the energy efficient model sells for $700 and will save you $45 at the end of each of the next five years in electricity costs. the standard model has features similar to the energy efficient model but provides no future saving in electricity costs. it is priced at only $500. assuming your opportunity cost of funds is 6 percent, which refrigerator should you purchase
Answers: 3
Business, 23.06.2019 01:00, softballgirl3589
Tariffs and quotas are often imposed when a government is more responsive to interests, and the benefits of those trade restrictions are often ; concentrated producer; widely dispersed consumer; widely dispersed consumer; concentrated
Answers: 3
Business, 23.06.2019 02:50, seanisom7
Ll companies has sales of $9,800, net income of $1,060, total assets of $8,950, and total debt of $4,760. assets and costs are proportional to sales. debt and equity are not. a dividend of $371 was paid, and the company wishes to maintain a constant payout ratio. next year's sales are projected to be $10,584. what is the amount of the external financing need?
Answers: 3
Do you know the correct answer?
Perfect Corporation acquired 70 percent of Storm Company's shares on December 31, 20X8, for $140,000...
Questions in other subjects:
Chemistry, 05.09.2020 20:01
Health, 05.09.2020 20:01
Chemistry, 05.09.2020 20:01
