Question

Alfa bought 30% of the Beta common stock on January 1, 2019 in the amount of...

Alfa bought 30% of the Beta common stock on January 1, 2019 in the amount of $ 300,000. The fair value and book value of Beta's net assets at that date were $ 1,000,000 and $ 900,000, respectively. The difference between the two values ​​is due to equipment whose market value exceeds that of books by $ 60,000 and which depreciates in three years. The remainder of this difference is due to goodwill.
On May 19, 2019, Beta published the results of its operations for the first quarter of the year (January to March 2019) and these reflected a net income of $ 200,000. On March 31, Beta declared a cash dividend in the amount of $ 50,000. What is the balance that the investment account must reflect in Alfa's books, once Alfa has accounted for the information reported by Beta?

Seleccione una:

a. $356,667

b. $313,500

c. $343,500

d. $371,667

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Alfa bought 30% of the Beta common stock on January 1, 2019 in the amount of...
Alfa bought 30% of the Beta common stock on January 1, 2019 in the amount of $ 300,000. The fair value and book value of Beta's net assets at that date were $ 1,000,000 and $ 900,000, respectively. The difference between the two values ​​is due to equipment whose market value exceeds that of books by $ 60,000 and which depreciates in three years. The remainder of this difference is due to goodwill. On May 19, 2019, Beta published the...
Alpha bought 30% of the Common Shares of Beta on 1 January 2019 for the amount...
Alpha bought 30% of the Common Shares of Beta on 1 January 2019 for the amount of $300,000. The righteous value and book value of net Beta assets in that date was $1,000,000 and $900,000, respectively. The difference between the two values is due to a computer whose market value exceeds that of books by $ 60,000 and that depreciates in three years. The remnant of such difference is due to Goodwill. On May 19, 2019, Beta released the results...
Beta company had 62,000 shares of common stock issued and outstanding at January 1, 2021. during...
Beta company had 62,000 shares of common stock issued and outstanding at January 1, 2021. during 2021, beta took the following actions: June 1 declared a 2-for-1 stock split, when the fair value of the stock was $37 per share October 15 declared a $0.40 per share cash dividend In beta's statement of shareholders' equity for 2021, what amount should beta report as dividends? a. 74,000 b. 111,600 c. 24,800 d. 49,600
Parent Industries bought Subsidiary Inc.’s voting stock on January 1, 2019 for $42,000, when Subsidiary’s book...
Parent Industries bought Subsidiary Inc.’s voting stock on January 1, 2019 for $42,000, when Subsidiary’s book value was $8,000. Fair value information on Subsidiary’s assets and liabilities at the date of acquisition is as follows: Property and equipment (P&E) is overvalued by $7,000. P&E has a 10-year remaining life, straight-line. Previously unreported identifiable intangibles are valued at $8,000. These intangibles have indefinite lives, but testing reveals impairment of $2,000 in 2019 and $1,000 impairment in 2020. Goodwill reported for this...
On January 1, 2019, when its $30 par value common stock was selling for $80 per...
On January 1, 2019, when its $30 par value common stock was selling for $80 per share, Wildhorse Corp. issued $11,300,000 of 8% convertible debentures due in 20 years. The conversion option allowed the holder of each $1,000 bond to convert the bond into five shares of the corporation’s common stock. The debentures were issued for $12,204,000. The present value of the bond payments at the time of issuance was $9,605,000, and the corporation believes the difference between the present...
Femur Co. acquired 70% of the voting common stock of Harbor Corp. on January 1, 2019....
Femur Co. acquired 70% of the voting common stock of Harbor Corp. on January 1, 2019. During 2019, Harbor had revenues of $2,500,000 and expenses of $2,000,000. The amortization of fair value allocations totaled $60,000 in 2019. Not including its investment in Harbor, Femur Co. had its own revenues of $4,500,000 and expenses of $3,000,000 for the year 2019. A.) What amount of consolidated net income for 2019 should be allocated to Femur’s controlling interest in Harbor? B.) What amount...
Alpha obtains 100% of Beta on January 1, Year 1. Alpha spent $10,000,000 in cash, and...
Alpha obtains 100% of Beta on January 1, Year 1. Alpha spent $10,000,000 in cash, and also gave to Beta’s shareholders some Alpha Company stock that had a par value of $700,000 and a fair value of $3,000,000. Alpha spent $20,000 on lawyer and accounting fees in connection with the deal, and $10,000 on stock registration fees. Also, Alpha agreed to pay Beta’s shareholders an extra amount, of up to $1,000,000, if the income from Beta over the next two...
On January 1, 2018, Cameron Inc. bought 20% of the outstanding common stock of Lake Construction...
On January 1, 2018, Cameron Inc. bought 20% of the outstanding common stock of Lake Construction Company for $400 million cash. At the date of acquisition of the stock, Lake's net assets had a fair value of $700 million. Their book value was $600 million. The difference was attributable to the fair value of Lake's buildings and its land exceeding book value, each accounting for one-half of the difference. Lake’s net income for the year ended December 31, 2018, was...
On January 1, 2019, Pride Corporation purchased 90 percent of the outstanding voting shares of Star,...
On January 1, 2019, Pride Corporation purchased 90 percent of the outstanding voting shares of Star, Inc., for $612,000 cash. The acquisition-date fair value of the noncontrolling interest was $68,000. At January 1, 2019, Star’s net assets had a total carrying amount of $476,000. Equipment (eight-year remaining life) was undervalued on Star’s financial records by $71,200. Any remaining excess fair value over book value was attributed to a customer list developed by Star (four-year remaining life), but not recorded on...
Assume that, on January 1, 2021, Sosa Enterprises paid $2,240,000 for its investment in 30,000 shares...
Assume that, on January 1, 2021, Sosa Enterprises paid $2,240,000 for its investment in 30,000 shares of Orioles Co. Further, assume that Orioles has 100,000 total shares of stock issued and estimates an eight-year remaining useful life and straight-line depreciation with no residual value for its depreciable assets. At January 1, 2021, the book value of Orioles' identifiable net assets was $7,260,000, and the fair value of Orioles was $10,000,000. The difference between Orioles' fair value and the book value...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT