On July 1, 20X8, Pair Logic Corporation acquires 75 percent of Systems Inc. common stock for its underlying book value. At the time of acquisition, the fair value of the noncontrolling interest is equal to its proportionate share of book value of Systems. On January 1, 20X8 Systems reported common stock of $100,000 and retained earnings of $130,000. For the year 20X8, Systems reports the following items:
Before combinaiton (January 1 to June 30) After combination (July 1 to December 31)
Sales $150,000 $160,000
Cost of Goods Sold 90,000 93,000
Depreciation Expense 20,000 20,000
Other Expenses 15,000 17,000
Net Income 25,000 30,000
Dividends 15,000 18,000
Pair Logic uses the equity method in accounting for this investment. Based on the preceding information, what is the book value of shares acquired by Pair Logic on July 1, 20X8?
a. 191,250
b. 230,000
c. 240,000
d. 180,000
Answers: 3
Other questions on the subject: Business
Business, 22.06.2019 13:40, ilovecatsomuchlolol
A. j. was a newly hired attorney for idle time gaming, inc. even though he reported directly to the president of the company, a. j. noticed that the president always had time to converse with the director of sales, calling on him to get a pulse on legal/regulatory issues that, as the company attorney, a. j. could have probably handled. a. j. also noted that the hr manager’s administrative assistant was the go-to person for a number of things that would make life easier at work. a. j. was recognizing the culture at idle time gaming.
Answers: 3
Business, 22.06.2019 23:50, natalie2sheffield
Mauro products distributes a single product, a woven basket whose selling price is $15 and whose variable expense is $12 per unit. the company’s monthly fixed expense is $4,200. required: 1. solve for the company’s break-even point in unit sales using the equation method. 2. solve for the company’s break-even point in dollar sales using the equation method and the cm ratio. (do not round intermediate calculations. round "cm ratio percent" to nearest whole percent.) 3. solve for the company’s break-even point in unit sales using the formula method. 4. solve for the company’s break-even point in dollar sales using the formula method and the cm ratio. (do not round intermediate calculations. round "cm ratio percent" to nearest whole percent.)
Answers: 2
Business, 23.06.2019 01:00, jdeelc
Lycan, inc., has 7.5 percent coupon bonds on the market that have 8 years left to maturity. the bonds make annual payments and have a par value of $1,000. if the ytm on these bonds is 9.5 percent, what is the current bond price? (do not round intermediate calculations and round your answer to 2 decimal places, e. g., 32.16.) current bond price
Answers: 2
Business, 23.06.2019 01:40, sospls352
During a liquidation, a partner's capital account balance drops below zero. what should happen? select one: a. the deficit balance should be removed from the accounting records with only the remaining partners sharing in future gains and losses. b. the partner with a deficit should contribute enough assets to offset the deficit balance if he is solvent. c. the other partners should contribute enough assets to offset the amount of deficit if the partner with a deficit is insolvent. d. both b & c
Answers: 3
Do you know the correct answer?
On July 1, 20X8, Pair Logic Corporation acquires 75 percent of Systems Inc. common stock for its und...
Questions in other subjects:
Mathematics, 10.11.2019 13:31
Mathematics, 10.11.2019 13:31
Mathematics, 10.11.2019 13:31
Chemistry, 10.11.2019 13:31
