Subject- accounting Gant Company purchased 20 percent of the outstanding shares of Temp Company for $81,000 on January 1, 20X6. The followingresults are reported for Temp Company.Net incomeDividends paidFair value of shares held by Gant:January 1December 31a. Carries the investment at fair valueb. Uses the equity methodRequired ARequired:Determine the amounts reported by Gant as income from its investment in Temp for each year and the balance in Gant's investment inTemp at the end of each year assuming that Gant uses the following options in accounting for its investment in Temp:Required BComplete this question by entering your answers in the tabs below.Income from investmentBalance in investmentNet incomeDividends paidFair value of shares held by Gant:January 1December 31Determine the amounts reported by Gant as income from its investment in Temp for each year and the balance in Gant'sinvestment in Temp at the end of each year assuming that Gant uses the fair value option in accounting for its investment in tTemp.20X620x620x7$ 45,000 $ 40,00013,00025,00081,000100,000a. Carries the investment at fair value.b. Uses the equity method.Required A Required BIncome from investmentBalance in investment20X7100,00097,00097,000 108,000Required AGant Company purchased 20 percent of the outstanding shares of Temp Company for $81,000 on January 1, 20X6. The followingresults are reported for Temp Company:20X620x8$ 61,00018,00020X8Required:Determine the amounts reported by Gant as income from its investment in Temp for each year and the balance in Gant's investment inTemp at the end of each year assuming that Gant uses the following options in accounting for its investment in Temp:20x620x720x8$ 45,000 $40,000 $61,00013,00025,00018,000Complete this question by entering your answers in the tabs below.Required B >81,000 100,00097,000100,000 97,000 108,00020X7Determine the amounts reported by Gant as income from its investment in Temp for each year and the balance in Gant'sinvestment in Temp at the end of each year assuming that Gant uses the equity method in accounting for its investment inTemp.< Required A420X8

An investment may be recorded under the fair value method or equity method. Under the equity method,…

Gant Company purchased 20 percent of the outstanding shares of Temp Company for $81,000 on January 1, 20x6. The following results are reported for Temp Company Net income Dividends paid Fair value of shares held by Gant: January 1 December 31 a Carries the investment at fair value b. Uses the equity method Required A Required B Required: Determine the amounts reported by Gant as income from its investment in Temp for each year and the balance in Gant's investment in Temp at the end of each year assuming that Gant uses the following options in accounting for its investment in Temp Income from investment Balance in investment Complete this question by entering your answers in the tabs below. 20X6 Net income Dividends paid Fair value of shares held by Gant: January 1 December 31 20x6 $ 45,000 13,000 Determine the amounts reported by Gant as income from its investment in Temp for each year and the balance in Gant's investment in Temp at the end of each year assuming that Gant uses the fair value option in accounting for its investment in Temp. 81,000 100,000 a Carries the investment at fair value. b. Uses the equity method. 20x7 20x8 $40,000 $ 61,000 25,000 18,000 Income from investment Balance in investment 100,000 97,000 97,000 200,000 20X7 Gant Company purchased 20 percent of the outstanding shares of Temp Company for $81,000 on January 1, 20X6. The following results are reported for Temp Company: 20x6 20x8 20x6 20x7 20x8 $ 45,000 $40,000 $ 61,000 13,000 25,000 18,000 Required B > 81,000 100,000 97,000 100,000 Required: Determine the amounts reported by Gant as income from its investment in Temp for each year and the balance in Gant's investment in Temp at the end of each year assuming that Gant uses the following options in accounting for its investment in Temp: 20X7 Complete this question by entering your answers in the tabs below. Required A Required B Determine the amounts reported by Gant as income from its investment in Temp for each year and the balance in Gant's investment in Temp at the end of each year assuming that Gant uses the equity method in accounting for its investment in Temp. < Required A 4 97,000 108,000 20X8

Gant Company purchased 20 percent of the outstanding shares of Temp Company for $81,000 on January 1, 20x6. The following results are reported for Temp Company Net income Dividends paid Fair value of shares held by Gant: January 1 December 31 a Carries the investment at fair value b. Uses the equity method Required A Required B Required: Determine the amounts reported by Gant as income from its investment in Temp for each year and the balance in Gant's investment in Temp at the end of each year assuming that Gant uses the following options in accounting for its investment in Temp Income from investment Balance in investment Complete this question by entering your answers in the tabs below. 20X6 Net income Dividends paid Fair value of shares held by Gant: January 1 December 31 20x6 $ 45,000 13,000 Determine the amounts reported by Gant as income from its investment in Temp for each year and the balance in Gant's investment in Temp at the end of each year assuming that Gant uses the fair value option in accounting for its investment in Temp. 81,000 100,000 a Carries the investment at fair value. b. Uses the equity method. 20x7 20x8 $40,000 $ 61,000 25,000 18,000 Income from investment Balance in investment 100,000 97,000 97,000 200,000 20X7 Gant Company purchased 20 percent of the outstanding shares of Temp Company for $81,000 on January 1, 20X6. The following results are reported for Temp Company: 20x6 20x8 20x6 20x7 20x8 $ 45,000 $40,000 $ 61,000 13,000 25,000 18,000 Required B > 81,000 100,000 97,000 100,000 Required: Determine the amounts reported by Gant as income from its investment in Temp for each year and the balance in Gant's investment in Temp at the end of each year assuming that Gant uses the following options in accounting for its investment in Temp: 20X7 Complete this question by entering your answers in the tabs below. Required A Required B Determine the amounts reported by Gant as income from its investment in Temp for each year and the balance in Gant's investment in Temp at the end of each year assuming that Gant uses the equity method in accounting for its investment in Temp. < Required A 4 97,000 108,000 20X8

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA2: Investments

Section: Chapter Questions

Problem 25E

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