Dazed Corporation paid $ 387,000 for 30% of Dawson Corporation outstanding common stock on January 1, 2010. Dawson shareholders equity on January 1, 2010 was $ 500,000 consisting of $ 300,000 common stock and $ 200,000 retained earnings. During 2010 Dawson had net income of $ 120,000 and on November 1, 2010 paid dividends of $ 50,000. Dawson assets and liabilities were stated at fair value on January 1, 2010 except for building with a remaining useful life of 20 years that was overstated by $60,000 and equipment with a remaining useful life of 10 years that was understated by $ 150,000 ANSWER THE QUESTIONS THAT FOLLOW What is the balance in the Investment account on at December 31, 2010 What is the amount of goodwill paid Provide all entries necessary in Dazed books for 2010 to account for its investment in Dawson WHICH ACCOUNT IS DEBITED FOR $ 387,000 What is Dazed investment income for 2010 What is the amount of dividends received Choose... Choose... Choose... Choose... Choose...
Dazed Corporation paid $ 387,000 for 30% of Dawson Corporation outstanding common stock on January 1, 2010. Dawson shareholders equity on January 1, 2010 was $ 500,000 consisting of $ 300,000 common stock and $ 200,000 retained earnings. During 2010 Dawson had net income of $ 120,000 and on November 1, 2010 paid dividends of $ 50,000. Dawson assets and liabilities were stated at fair value on January 1, 2010 except for building with a remaining useful life of 20 years that was overstated by $60,000 and equipment with a remaining useful life of 10 years that was understated by $ 150,000 ANSWER THE QUESTIONS THAT FOLLOW What is the balance in the Investment account on at December 31, 2010 What is the amount of goodwill paid Provide all entries necessary in Dazed books for 2010 to account for its investment in Dawson WHICH ACCOUNT IS DEBITED FOR $ 387,000 What is Dazed investment income for 2010 What is the amount of dividends received Choose... Choose... Choose... Choose... Choose...
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter16: Retained Earnings And Earnings Per Share
Section: Chapter Questions
Problem 10MC
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