Equity Method for Stock Investment On January 4, Year 1, Ferguson Company purchased 80,000 shares of Silva Company directly from one of the founders for a price of $64 per share. Silva has 250,000 shares outstanding, including the Daniels shares. On July 2, Year 1, Silva paid $196,000 in total dividends to its shareholders. On December 31, Year 1, Silva reported a net income of $747,000 for the year. Ferguson uses the equity method in accounting for its investment in Silva. b. Determine the December 31, Year 1, balance of Investment in Silva Company Stock.$
Equity Method for Stock Investment On January 4, Year 1, Ferguson Company purchased 80,000 shares of Silva Company directly from one of the founders for a price of $64 per share. Silva has 250,000 shares outstanding, including the Daniels shares. On July 2, Year 1, Silva paid $196,000 in total dividends to its shareholders. On December 31, Year 1, Silva reported a net income of $747,000 for the year. Ferguson uses the equity method in accounting for its investment in Silva. b. Determine the December 31, Year 1, balance of Investment in Silva Company Stock.$
Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
Chapter12: Statement Of Stockholders’ Equity (stockeq)
Section: Chapter Questions
Problem 3R: Chen Corporation began 2012 with the following stockholders equity balances: The following selected...
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Equity Method for Stock Investment
On January 4, Year 1, Ferguson Company purchased 80,000 shares of Silva Company directly from one of the founders for a price of $64 per share. Silva has 250,000 shares outstanding, including the Daniels shares. On July 2, Year 1, Silva paid $196,000 in total dividends to its shareholders. On December 31, Year 1, Silva reported a net income of $747,000 for the year. Ferguson uses the equity method in accounting for its investment in Silva.
b. Determine the December 31, Year 1, balance of Investment in Silva Company Stock.
$
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