ACC 703 Chapter Notes - Chapter 8: Franchise Agreement, Retained Earnings, Book Value

249 views19 pages

Document Summary

Regular dividends are presented as operating or financing activities. Preparing the consolidated cash flow statement: bold entries equal the amount in the investment in sub account. Block acquisitions of subsidiary (step purchases) (see pg 434) Ex: (1) on jan. 1, year 1, par buys 1,000 common shares (10%) of star for ,000. Star has ,000 common shares and re ,000. Net income for star is ,000, no dividends paid. Fv of star"s shares at year- end was . Cv = fv except for equipment: undervalued by ,000, with useful life of. Year 2 net income is ,000 and ,000 paid in dividends. at year- end: equity method is used once significant influence is obtained, prospectively, star is now an associate. Cv = fv except for equipment: undervalued by ,000, with useful life of 4 years. Year 3 net income is. ,000 and ,000 paid in dividends. Remember to use new percentage ownership: amortization of equipment of .

Get access

Grade+20% off
$8 USD/m$10 USD/m
Billed $96 USD annually
Grade+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
40 Verified Answers
Class+
$8 USD/m
Billed $96 USD annually
Class+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
30 Verified Answers

Related Documents

Related Questions