CASE 3 (QS 17-19); Casper Co. paid $2,400,000 to acquire all of the common stock of Janet Corp. on January 1, 2012. Janet's reported earnings for 2012 totaled $432,000, and it paid $120,000 in dividends during the year. The amortization of allocations related to the investment was $24,000. Casper's net income, not including the investment, was $3,180,000, and it paid dividends of $900,000. Question 17 On the consolidated financial statements for 2012, what amount should have been shown for Equity in Subsidiary Earnings? A) $432,000. B) $ -0- C) $408,000. D) $120,000. E) $288,000. On the consolidated financial statements for 2012, what amount should have been shown for consolidated dividends? A) $ 900,000. B) $1,020,000. C) $ 876,000. D) $ 996,000. E) $ 948,000. What is the amount of consolidated net income for the year 2012? A) $3,180,000. B) $3,612,000. C) $3,300,000. D) $3,588,000. E) $3,420,000.

26. On January 1, B company paid $2,295,000 to acquire 90,000 shares of O company's voting common stock, which represents a 30 percent investment. No allocations to   goodwill or other specific accounts were made. Significant influence over O company is achieved by this acquisition, and so B company applies the equity method. O company   declared a $1 per share dividend during the year and reported net income of $750,000. What is the balance in the Investment in O company account found in B company's   financial records as of December 31?

Pearl Corporation paid $300,000 on January 1, 2010 for a 35% interest in Sandlin Inc. On January 1, 2010, the book value of Sandlin's stockholders' equity consisted of $400,000 of common stock and $400,000 of retained earnings. All the excess purchase cost over book value acquired was attributable to a patent with an estimated life of 5 years. During 2010 and 2011, Sandlin paid $6,000 of dividends each quarter and reported net income of $120,000 for 2010 and S160,000 for 2011. Pearl used the equity method. Required: 1. Calculate Pearl's income from Sandlin for 2010. 2. Determine the balance of Pearl's Investment in Sandlin account on December 31, 2010

Cardinal Company acquires an 80% interest in Huron Company common stock for $420,000 cash on January 1, 2015. At that time, Huron Company has the following balance sheet: (attached)Prepare a determination and distribution of excess schedule for the investment in Huron Company (a value analysis is not needed). Prepare journal entries that Cardinal Company would make on its books to record income earned and/or dividends received on its investment in Huron Company during 2015 and 2016 under the following methods: simple equity, sophisticated equity, and cost.

Porter Corporation purchased 80% of the common stock of Salem Company for $850,000 on January 1, 2013. During the next three years, Salem had the following income and Dividends paid: Year Income Dividends 2013 $100,000 $25,000 2014 $110,000 $35,000 2015 $170,000 $60,000 Prepare the journal entries made under both methods and then compute the ending balance in the "investment" account under both methods.

. Paulee Corporation paid $24,800 for an 80% interest in Sergio Corporation on January 1, 2013, at which time Sergio's stockholders' equity consisted of $15,000 of Common Stock and $6,000 of Retained Earnings. The fair values of Sergio Corporation's assets and liabilities were identical to recorded book values when Paulee acquired its 80% interest.   Sergio Corporation reported net income of $4,000 and paid dividends of $2,000 during 2013.   Paulee Corporation sold inventory items to Sergio during 2013 and 2014 as follows:                                                                                 2013                    2014 Paulee's sales to Sergio                                   $5,000                 $6,000 Paulee's cost of sales to Sergio                        3,000                   3,500 Unrealized profit at year-end                          1,000                   1,500   At December 31, 2014, the accounts payable of Sergio include $1,500 owed to Paulee for inventory…

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Crane Company reported net income of $470000 for the year ended 12/31/21. Included in the computation of net income were: depreciation expense, $59000; amortization of a patent, $31000; income from an investment in common stock of Blossom Company, accounted for under the equity method, $47000; and amortization of a bond discount, $11000. Crane also paid an $79000 dividend during the year. The net cash provided by operating activities would be reported at O $445000. $414000. $335000. O $524000.

Luck Corporation , which was formed January 1, 2015,  has a net short-term capital gain of $60,000 and a net long-term capital loss of $100,000 during 2020. Luck Corporation had taxable income from other sources of $200,000. Prior years' transactions included the following (note 2019 had no capital gains or losses):2015- net long term capital gain of 150k 2016- net short term capital gain of 24k 2017- net short term capital gain of 12k 2018- net long term capital gain of 8kLuck's carryover to 2021 is: Select one: a. $0 b. $40,000 long-term capital loss c. $20,000 long-term capital loss d. $20,000 short-term capital loss e. None of the above