Bramble Inc. purchased 30% of Nadal Corporation's 26,000 outstanding common shares at a cost of...
90.2K
Verified Solution
Link Copied!
Question
Accounting
Bramble Inc. purchased 30% of Nadal Corporation's 26,000 outstanding common shares at a cost of $15 per share on January 3, 2020. The purchase price of $15 per share was based solely on the book value of Nadal's net assets. On September 21, Nadal declared and paid a cash dividend of $33,900. On December 31, Bramble's year end, Nadal reported net income of $74,000 for the year. Nadal shares had a fair value of $14.75 per share at December 31. Bramble Inc., a private Canadian corporation, applies ASP (a) Your answer is partially correct. Under the assumption that the 30% holding of Nadal does not give Bramble significant influence over Nadal, identify the possible accounting methods Bramble could use under ASPE to account for its investment. Prepare all required 2020 journal entries under each acceptable method. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts. Round answers to decimal places, eg. 5,275.) Cost method: Jan. 3.2020
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!
