Jackson Corporation owns 10% of the voting stock of Kettering Company and has been reporting it as an equity investment with no significant influence. At the beginning of the current year, the investment has a fair value of $40,000,000. Jackson originally purchased its 10% interest for $30,000,000. Jackson purchases an additional 25% interest in Kettering's voting stock for $120,000,000, and determines that the equity method is now appropriate. Any basis difference is attributed to goodwill. Kettering reports net income of $800,000 for the current year, and declares and pays $100,000 in dividends. The year-end fair value of Jackson's 35% interest is $170,000,000. At what amount does Jackson report the investment on its balance sheet? A. $160,245,000 B. $160,280,000 C. $170,000,000 D. $150,245,000
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Jackson Corporation owns 10% of the voting stock of Kettering Company and has been reporting it as an equity investment with no significant ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
What global market-entry strategy did mary kay use when it entered india?
Answers (1)
Statements on Standards for Tax Services are issued by A) the FASB. B) the AICPA. C) the SEC. D) the IRS.
Answers (1)
What is the primary goal of a society? A) To promote the protection and well being of its members B) To promote the financial growth of its members C) To promote the spirituality of its members D) To promote the destruction of its members
Answers (1)
For analysis purposes Jay considers his restaurant to have three revenue centers. These are the dining room, the bar and off-site catering. Last month Jay's total revenue was $50,000. Off site catering revenue was $20,000.
Answers (1)
Which statements are true if the particle size in a packed column used in HPLC is decreased? a. increased resolution b. increased separation c. efficiency allows the use of a lower operating pressure d.
Answers (1)
New Questions in Business
The University Golf Shop desires to make $10,000 in pretax profits. If the contribution margin ratio (CMR) is 50% and the fixed costs are $110,000, what is the required level of sales
Answers (1)
Uriah received the following interest payments:Interest of $400 on an overpayment of a previous year's Federal income taxesInterest of $300 on an award received for money lost due to fraud by his previous investment advisorInterest of $1,500 on
Answers (1)
4. Trade policies Tariffs and quotas do which of the following? Benefit domestic producers of the protected good and harm domestic consumers of the protected good Benefit foreign producers of the protected good and harm domestic producers of the
Answers (1)
How did whirlpool use capabilities of text analytics to better understand their customers and improve product offerings?
Answers (1)
How did the Once-ler encourage his target market to learn more about the thneeds?
Answers (1)