Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. nzelmo corporation invested in jones manufacturing

nzelmo Corporation invested in Jones Manufacturing by purchasing a? 10% interest in the company. Anzelmo had...

60.1K

Verified Solution

Question

Accounting

nzelmo Corporation invested in Jones Manufacturing by purchasinga? 10% interest in the company. Anzelmo had no significantinfluence in Jones. Over? time, Anzelmo acquired more shares in?Jones, and in? 2016, Anzelmo's president became a member of theboard of directors when its ownership interest reached? 30% ofJones. The cost basis of its investment is? $2,000,000. Under theequity? method, the valuation of the investment would be?$2,400,000. The fair value of the investment is? $2,600,000. Whatis the amount of the adjustment to the investment account necessaryto properly record the change in accounting? principal?

Answer & Explanation Solved by verified expert
4.0 Ratings (609 Votes)
Cost method of investment should be used if the investors do not have more than 20 to 50 investment and do not have sufficient influence over the company Under this method dividend received should    See Answer
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

Transcribed Image Text

nzelmo Corporation invested in Jones Manufacturing by purchasinga? 10% interest in the company. Anzelmo had no significantinfluence in Jones. Over? time, Anzelmo acquired more shares in?Jones, and in? 2016, Anzelmo's president became a member of theboard of directors when its ownership interest reached? 30% ofJones. The cost basis of its investment is? $2,000,000. Under theequity? method, the valuation of the investment would be?$2,400,000. The fair value of the investment is? $2,600,000. Whatis the amount of the adjustment to the investment account necessaryto properly record the change in accounting? principal?

Other questions asked by students

Q

Based on historical data, your manager believes that 44% of the company's orders come from first-time...

Basic Math
Q

Identify the following as Lewis acids or bases. For a polyatomic molecule, you should be concerned...

Chemistry
Q

The following table describes five molecules that belong to the same class.MoleculeHemoglobinAmylaseImmunoglobulinCollagenAquaporinFunctiontransports oxygen in the...

Biology
Q

Long ears in rabbits is an autosomal dominant trait You cross a rabbit that is...

Biology
Q

The exponential distribution O has the density function f x ex for x 0 O...

Basic Math
Q

Evaluate the definite integral.0?1 cos(?t/2) dt0? 1 (1 + 7x)^(1/3) dx0? ?/6 sint/costdt

Calculus
Q

Help Save &Exit Tasha LLC purchased furniture (7-year property, on April 20 for $20,000 and...

Accounting
Q

Garden Depot is a retailer that provided the following budgeted cash flows for next year:...

Accounting
Q

The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall...

Accounting
Q

Company A paid $25,000 cash dividends. How should this be reported on its cash-flow statement?...

Accounting
Q

Answer any TWO (2) questions only. QUESTION 1 (25 MARKS) The Income Statement of Malaysia...

Accounting
Q

MEXICOS BALANCE OF PAYMENTS PROBLEM Recently, Mexico experienced large-scale trade deficits, depletion of foreign reserve...

Finance