The stockholders equity of Acme Corporation at December 31, 2020 consisted of the following Common...
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Accounting
The stockholders equity of Acme Corporation at December 31, 2020 consisted of the following
Common stock $ 2 par 60,000 shares outstanding $ 120,000
Additional Paid In Capital 30,000
Retained Earnings 200,000
Company has been in a tight working capital position and at January 1,2021 sold 20,000 previously unissued common stock to Bugs Corporation for $200,000
All of Acme identifiable assets and liabilities were recorded at fair value at this date except for building with remaining useful life of 20 years that was undervalued by $60,000 and equipment with remaining useful life of 10 years that was overvalued by $10,000.
Bugs will be accounting for its investment using the Equity Method
During 2021, Acme reported net income of $120,000 and paid dividends Mar 31 of 25 cents per share; June 30 of $ 50 cents per share; Sept 30 of 20 cents per share and Dec 31 of 20 cents per share.
What is the balance in the Investment in Acme account on Bugs books at Dec 31, 2021?
What is the amount of Goodwil paid by Bugs?
What is the ownership percentage held by Bugs?
What is Bugs investment income from Acme for the year?
What is the amount of dividends received by bugs for the year?
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