Business, 06.04.2021 02:40, genyjoannerubiera
On January 1, 2017, Fisher Corporation purchased 40 percent (78,000 shares) of the common stock of Bowden, Inc. for $982,000 in cash and began to use the equity method for the investment. The price paid represented a $60,000 payment in excess of the book value of Fisher's share of Bowden's underlying net assets. Fisher was willing to make this extra payment because of a recently developed patent held by Bowden with a 15-year remaining life. All other assets were considered appropriately valued on Bowden's books.
Bowden declares and pays a $94,000 cash dividend to its stockholders each year on September 15. Bowden reported net income of $408,000 in 2017 and $356,000 in 2018. Each income figure was earned evenly throughout its respective year.
On July 1, 2018, Fisher sold 10 percent (19,500 shares) of Bowden's outstanding shares for $328,000 in cash. Although it sold this interest, Fisher maintained the ability to significantly influence Bowden's decision-making process.
=Prepare the journal entries for Fisher for the years of 2017 and 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Round your final answers to the nearest whole dollar.)
1. Record cost of 78,000 shares of Bowden Company. (1/01/2017)
2. Record the annual dividend declared and received from Bowden. (9/15/2017)
3. Record accrue 2017 income based on 40% ownership of Bowden. (12/31/2017)
4. Record amortization of $60,000 excess patent fair value [indicated in problem] over 15 years. (12/31/2017)
5. Record the entry to accrue ½ year income of 40% ownership. (7/01/2018)
6. Record ½ year amortization of patent to establish correct book value for investment as of 7/1/18. (7/01/2018)
7. Record 19,500 shares of Bowden Company sold; investment basis computed below. (7/01/2018)
8. Record annual dividend declared and received. (9/15/2018)
9. Record ½ year income based on remaining 30% ownership. (12/31/2018)
10. Record ½ year of patent amortization. (12/31/2018)
Answers: 3
Business, 22.06.2019 18:00, 20jhuffman
Bond j has a coupon rate of 6 percent and bond k has a coupon rate of 12 percent. both bonds have 14 years to maturity, make semiannual payments, and have a ytm of 9 percent. a. if interest rates suddenly rise by 2 percent, what is the percentage price change of these bonds?
Answers: 2
Business, 23.06.2019 07:40, fansofboys
S. you are changing planes in london for a flight to paris where you will connect with your flight to capetown. you are picking up reading material for the flight and are looking at the prices listed on the economist magazine which conveniently lists prices in several different global currencies. you note that the price in pounds is 2.40 pounds and the price in euros is 2 euros. the exchange rate for the dollar (your credit card was issued in the usa) is $1.59/pound and s1.3837/euro. should you buy reading materials now or wait until you're in paris?
Answers: 3
On January 1, 2017, Fisher Corporation purchased 40 percent (78,000 shares) of the common stock of B...
English, 30.06.2019 10:00
Biology, 30.06.2019 10:00
Biology, 30.06.2019 10:00
Mathematics, 30.06.2019 10:00