29 Jun Jan 1 investor Corporation purchased 8,000 shares (20%) of Investee Company’s outstanding stock at a cost of $150,000. May
uestion
2011
Jan
1
investor Corporation purchased 8,000 shares (20%) of Investee Company’s outstanding stock at a cost of $150,000.
May
31
Investee
company declared and paid a cash
dividend of $1.50 per share.
Dec
31
Investee Company announced that it net income for the year was $100,000.
2012
Oct
1
Investee Company declared and paid a cash dividend
of $1.00 per share.
Dec
31
Investee Company announced that its net income for the year was $80,000.
2013
Jan
1
Investorcorporaion sold all of its shares of Investee Company for $178,000 cash
Required:
Prepare journal entries on Investor Corporation’s books using theeqity method, which assumes that Investor has significant influence over Investee Company.
Prepare journal entries on Investor Corporation’s books using the cost method, which assumes that even though Investor owns 20% of Invitees stock, Investor does not have significant influence over Investee (for example, another corporation owns 70% of Investee Company’stock).
Write a brief report between 200-300 words in length outlining
Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Fill in all the assignment paper details that are required in the order form with the standard information being the page count, deadline, academic level and type of paper. It is advisable to have this information at hand so that you can quickly fill in the necessary information needed in the form for the essay writer to be immediately assigned to your writing project. Make payment for the custom essay order to enable us to assign a suitable writer to your order. Payments are made through Paypal on a secured billing page. Finally, sit back and relax.
About Writedemy
We are a professional paper writing website. If you have searched a question and bumped into our website just know you are in the right place to get help in your coursework. We offer HIGH QUALITY & PLAGIARISM FREE Papers.
How It Works
To make an Order you only need to click on “Order Now” and we will direct you to our Order Page. Fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Are there Discounts?
All new clients are eligible for 20% off in their first Order. Our payment method is safe and secure.