ACCT 1220 Chapter Notes - Chapter 12: Equity Method, Financial Statement, Book Value
51 views1 pages
8 Mar 2018
School
Department
Course
Professor
Get access
Grade+20% off
$8 USD/m$10 USD/m
Billed $96 USD annually
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
40 Verified Answers
Class+
$8 USD/m
Billed $96 USD annually
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
30 Verified Answers
Related Documents
Related Questions
Gant Company purchased 30 percent of the outstanding shares of Temp Company for $82,000 on January 1, 20X6. The following results are reported for Temp Company: |
20X6 | 20X7 | 20X8 | |||||||
Net income | $ | 44,000 | $ | 39,000 | $ | 64,000 | |||
Dividends paid | 12,000 | 30,000 | 17,000 | ||||||
Fair value of shares held by Gant: | |||||||||
January 1 | 82,000 | 101,000 | 98,000 | ||||||
December 31 | 101,000 | 98,000 | 109,000 | ||||||
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 methods in accounting for its investment in Temp: |
a. | Cost method. |
b. | Equity method. |
c. | Fair value method. |