Balance Sheet and Net Income

1268 WordsDec 13, 20136 Pages
On January 4, 2010, Harley, Inc. acquired 40% of the outstanding common stock of Bike Co. for $2,400,000. This investment gave Harley the ability to exercise significant influence over Bike. Bike's assets on that date were recorded at $10,500,000 with liabilities of $4,500,000. There were no other differences between book and fair values. During 2010, Bike reported net income of $500,000. For 2011, Bike reported net income of $800,000. Dividends of $300,000 were paid in each of these two years. 49. How much income did Harley report from Bike for 2010? 
A. $120,000.
B. $200,000.
C. $300,000.
D. $320,000.
E. $500,000. 26. Under the equity method, when the company's share of cumulative losses equals its investment and the company has no…show more content…
What is consolidated net income for 2014? Consolidated NCI = $406,000 All of the following are variable interests except A. Asset purchase options B. Participation rights C. Lease residual value guarantees D. Guarantees of debt E. Stock Options 8. On June 1, CamCo received a contract to sell inventory for ‘500,000. The sale would take place in 90 days. CamCo immediately signed a 90-day forward contract to sell the yen as soon as they are received. The spot rate on June 1 was $1 = 240 and the 90-day forward rate was $1 = 234. At what amount would CamCo record the Forward Contract on June 1? B. $0 8. Mills Inc. had a receivable from a foreign customer that is due in the local currency of the customer (stickles). On December 31, 2010, this receivable for §200,000 was correctly included in Mills' balance sheet at $132,000. When the receivable was collected on February 15, 2011, the U.S. dollar equivalent was $144,000. In Mills' 2011 consolidated income statement, how much should have been reported as a foreign exchange gain? 
 A. $0.
B. $36,000.
C. $48,000.
D. $10,000.
E. $12,000. 9. All of the following data may be needed to determine the fair value of a forward contract at any point in time except
 A. The forward rate when the forward contract was entered into.
 B. The current forward rate for a contract that matures on the same date as the forward contract entered into. C. The future spot rate. D. A discount rate. E. The
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