Liquidating dividend from an investee

08-Mar-2020 10:54

D Preferred dividends of the investee should be deducted from net income before the investor computes . On January 1, 20X4, Plimsol Company acquired 100 percent of Shipping Corporation's voting shares, at underlying book value. Based on the information provided, what amount of total assets will be reported in the consolidated balance sheet prepared on December 31, 20X4?

The investor's share of the investee's extraordinary items should be reported. The investor's share of the investee's prior-period adjustments should be reported. Continued use of the equity-method even if continued losses results in a zero or negative balance in the investment account.

The main pronouncement on equity-method reporting, APB 19 (ASC 323 and 325) requires all of the following except: A.

proportionate share of the fair value of the investee company's net assets. proportionate share of the book value of the investee company's net assets. Which of the following observations is consistent with the equity method of accounting? Dividends declared by the investee are treated as income by the investor. It is used when the investor lacks the ability to exercise significant influence over the investee. Shipping's retained earnings was ,000 on the date of acquisition. Plimsol uses the cost method in accounting for its investment in Shipping. Its primary use is in reporting nonsubsidiary investments.

Son reported earnings of ,000 and declared dividends of ,000 during 20X2. Based on the preceding information and assuming Parent uses the cost method to account for its investment in Son, what is the balance in Parent's Investment in Son account on December 31, 20X2, prior to consolidation?

,000 On January 1, 20X8, William Company acquired 30 percent of e Gate Company's common stock, at underlying book value of 0,000.

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