Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. 2. (20 points) on january 1, 2xx1, scott purchases

2. (20 points) On January 1, 2XX1, Scott purchases 25% of Nina's outstanding voting stock...

70.2K

Verified Solution

Question

Accounting

2. (20 points) On January 1, 2XX1, Scott purchases 25% of Nina's outstanding voting stock for $100,000. On the date of acquistion,A36 Nina has
a book value of $350,000. Nina also had a building where the FMV exceeds the book value by $50,000. The building has a remaining 10 year life.
Any additional premium is attributable to goodwill. During he year, Nina earns $40,000 and pays dividends of $15,000.
Prepare the journal entries to record the investment, dividends, and income assuming that Scott:
A. Cannot exercise Significant Influence.
B. Can exercise Significant Influence.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Dinklage Corp. has 8 million shares of common stock outstanding. The current share price is $74,...

Finance
Q

R programming language. The seafood data recorded the bacterial growth on oysters and mussels. The bacterial counts...

Programming
Q

The objective and eye piece of an astronomical telescope are double convex lenses with refractive...

Physics
Q

Q 6 75 Two infinitely long wires are fixed in the X Y plane along...

Physics
Q

A beam of light in air hits a stack of three slides with thicknesses of...

Physics
Q

Step 2 of 3 Graph the solution set of the second linear inequality Answer 2...

Geometry
Q

Suppose a brewery has a filling machine that fills 12-ounce bottles of beer. It is...

Basic Math
Q

11 1 2 6 5 4 1 0 1 2 3 4 f t TT...

Calculus
Q

Part 5 of 6 We now have In 1 ul 11 2 2 2t C...

Calculus
Q

2. Prepare the entry, to appropriately reflect the 205 depreciation in the accounts for 205,...

Accounting
Q

You have a business manufacturing Artfarts for Dogtown, Inc.. Following is the costing data you...

Accounting
Q

Suppose that a stock price is currently priced at $85. An exercise price of the...

Finance