uary 1, 2023, Stream Company acquired 29 percent of the outstanding voting shares of - o manufactures specialty cables for computer monitors. On that date, Q-Video reported assets and liabilities with book value - million and $634,000, respectively. A customer list compiled by Q-Video had an appraised value of $262,000, although it w corded on its books. The expected remaining life of the customer list was five years with straight-line amortization deemed priate. Any remaining excess cost was not identifiable with any particular asset and thus was considered goodwill. 2o generated net income of $298,000 in 2023 and a net loss of $102,000 in 2024. In each of these two years, Q-Video decla ald a cash dividend of $12,000 to its stockholders. 2023, Q-Video sold Inventory that had an original cost of $88,000 to Stream for $160,000. Of this balance, $80,000 was res siders during 2023, and the remainder was sold during 2024. In 2024, Q-Video sold Inventory to Stream for $176,000. This tory had cost only $132,000. Stream resold $108,000 of the Inventory during 2024 and the rest during 2025. red: 023 and then for 2024, compute the amount that Stream should report as Income from its Investment in Q-Video in its externa clal statements under the equity method. Enter your answers in whole dollars and not in millions.
uary 1, 2023, Stream Company acquired 29 percent of the outstanding voting shares of - o manufactures specialty cables for computer monitors. On that date, Q-Video reported assets and liabilities with book value - million and $634,000, respectively. A customer list compiled by Q-Video had an appraised value of $262,000, although it w corded on its books. The expected remaining life of the customer list was five years with straight-line amortization deemed priate. Any remaining excess cost was not identifiable with any particular asset and thus was considered goodwill. 2o generated net income of $298,000 in 2023 and a net loss of $102,000 in 2024. In each of these two years, Q-Video decla ald a cash dividend of $12,000 to its stockholders. 2023, Q-Video sold Inventory that had an original cost of $88,000 to Stream for $160,000. Of this balance, $80,000 was res siders during 2023, and the remainder was sold during 2024. In 2024, Q-Video sold Inventory to Stream for $176,000. This tory had cost only $132,000. Stream resold $108,000 of the Inventory during 2024 and the rest during 2025. red: 023 and then for 2024, compute the amount that Stream should report as Income from its Investment in Q-Video in its externa clal statements under the equity method. Enter your answers in whole dollars and not in millions.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:On January 1, 2023, Stream Company acquired 29 percent of the outstanding voting shares of Q-Video, Incorporated, for $680,000.
Q-Video manufactures specialty cables for computer monitors. On that date, Q-Video reported assets and liabilities with book values
of $2.6 million and $634,000, respectively. A customer list compiled by Q-Video had an appraised value of $262,000, although it was
not recorded on its books. The expected remaining life of the customer list was five years with straight-line amortization deemed
appropriate. Any remaining excess cost was not identifiable with any particular asset and thus was considered goodwill.
Q-Video generated net income of $298,000 in 2023 and a net loss of $102,000 in 2024. In each of these two years, Q-Video declared
and paid a cash dividend of $12,000 to its stockholders.
During 2023, Q-Video sold Inventory that had an original cost of $88,000 to Stream for $160,000. Of this balance, $80,000 was resold
to outsiders during 2023, and the remainder was sold during 2024. In 2024, Q-Video sold Inventory to Stream for $176,000. This
Inventory had cost only $132,000. Stream resold $108,000 of the Inventory during 2024 and the rest during 2025.
Required:
For 2023 and then for 2024, compute the amount that Stream should report as Income from its Investment in Q-Video in its external
financial statements under the equity method.
Note: Enter your answers In whole dollars and not In millions.
2023
2024
of
of
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