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Problem Schwartz & Co. obtained significant influence over Goldberg & Co. when they acquired a 40% interest in Goldberg |by acquiring 40% of the 80,000 outstanding shares of common stock at $28 per share on January 1, 2020. On July 1st, Goldberg paid a cash dividend of $150,000. On December 31, Goldberg reported net income of $500,000. Prepare the necessary journal entries to record the above transactions

Problem Schwartz & Co. obtained significant influence over Goldberg & Co. when they acquired a 40% interest in Goldberg |by acquiring 40% of the 80,000 outstanding shares of common stock at $28 per share on January 1, 2020. On July 1st, Goldberg paid a cash dividend of $150,000. On December 31, Goldberg reported net income of $500,000. Prepare the necessary journal entries to record the above transactions

Corporate Financial Accounting
Corporate Financial Accounting
14th Edition
ISBN:9781305653535
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
ChapterD: Investments
Section: Chapter Questions
Problem D.4EX
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5 Problem 7 6 Schwartz & Co. obtained significant influence over Goldberg & Co. when they acquired a 40% interest in Goldberg 7 by acquiring 40% of the 80,000 outstanding shares of common stock at $28 per share on January 1, 2020. 8 On July 1st, Goldberg paid a cash dividend of $150,000. On December 31, Goldberg reported net income of $500,000. O Prepare the necessary journal entries to record the above transactions 2 Problem 8 3 The total cost and machine hurs per month for XYZ Corp are as follows: -4 Cost Machine Hours Jan $49,000 26000 Feb 74,000 39,000 Mar 74,500 40,000 Apr 36,000 18,000 6. May 42,000 22000 June 68,000 34,500 1 2 Compute the variable cost per machine hour and the fixed costs using the hi-lo method 3 4 Problem 8A 5 Ifthe variable costs are 60% and the contribution margin is 40%, and the fixed costs are $1,400,000 and the 6 desired net income is $600,000, how much do sales have to be to break even after the fixed costs and desired net income?
Transcribed Image Text:5 Problem 7 6 Schwartz & Co. obtained significant influence over Goldberg & Co. when they acquired a 40% interest in Goldberg 7 by acquiring 40% of the 80,000 outstanding shares of common stock at $28 per share on January 1, 2020. 8 On July 1st, Goldberg paid a cash dividend of $150,000. On December 31, Goldberg reported net income of $500,000. O Prepare the necessary journal entries to record the above transactions 2 Problem 8 3 The total cost and machine hurs per month for XYZ Corp are as follows: -4 Cost Machine Hours Jan $49,000 26000 Feb 74,000 39,000 Mar 74,500 40,000 Apr 36,000 18,000 6. May 42,000 22000 June 68,000 34,500 1 2 Compute the variable cost per machine hour and the fixed costs using the hi-lo method 3 4 Problem 8A 5 Ifthe variable costs are 60% and the contribution margin is 40%, and the fixed costs are $1,400,000 and the 6 desired net income is $600,000, how much do sales have to be to break even after the fixed costs and desired net income?
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