es Right Company purchased 17,000 common shares (20%) of ON Inc. on January 1, Year 11, for $267,000. Right method to report its investment in ON because it has significant influence in the operating and investing decisions made by ON. Right has no legal obligation to pay any of ON's liabilities and has not committed to contribute any more funds to ON. Additional information for ON for the four years ending December 31, Year 14, is as follows: Year Year 11 Year 12 Year 13 Year 14 Net Income $ 370,000 (470,000) (570,000) (670,000) Dividends Paid $65,000 65,000 Market Value per Share at December 31 Investment, beginning of year Cost Equity method income Dividends received Impairment loss Investment, end of year $22 Required: (a) Calculate the balance in the investment account for each of the Years 11 through 14. Assume that the market value is used in determining whether the investment is impaired. (Leave no cells blank - be certain to enter "0" wherever required. Negative amounts should be indicated by a minus sign. Enter your answers in thousands. Omit $ sign in your response.) Year 12 Year 11 8 1 $ gar 13 Year 14

es Right Company purchased 17,000 common shares (20%) of ON Inc. on January 1, Year 11, for $267,000. Right method to report its investment in ON because it has significant influence in the operating and investing decisions made by ON. Right has no legal obligation to pay any of ON's liabilities and has not committed to contribute any more funds to ON. Additional information for ON for the four years ending December 31, Year 14, is as follows: Year Year 11 Year 12 Year 13 Year 14 Net Income $ 370,000 (470,000) (570,000) (670,000) Dividends Paid $65,000 65,000 Market Value per Share at December 31 Investment, beginning of year Cost Equity method income Dividends received Impairment loss Investment, end of year $22 Required: (a) Calculate the balance in the investment account for each of the Years 11 through 14. Assume that the market value is used in determining whether the investment is impaired. (Leave no cells blank - be certain to enter "0" wherever required. Negative amounts should be indicated by a minus sign. Enter your answers in thousands. Omit $ sign in your response.) Year 12 Year 11 8 1 $ gar 13 Year 14

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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On January 5, 2020, Splish Brothers Company purchased the following stock securities: 282 shares Bonter Corporation common stock for $4,230. 470 shares Wane Corporation common stock for $9,400. 752 shares Strauss Corporation common stock for $21,432. Assume that Splish Brothers Company cannot exercise significant influence over the activities of the investee companies and that the cost method is used to account for the investments.On June 30, 2020, Splish Brothers Company received the following cash dividends: Bonter Corporation$2.00 per share Wane Corporation$1.00 per share Strauss Corporation$1.50 per share On November 15, 2020, Splish Brothers Company sold 156 shares of Strauss Corporation common stock for $7,020.On December 31, 2020, the fair value of the securities held by Splish Brothers Company is as follows: Bonter Corporation common stock $10 Wane Corporation common stock 16 Strauss Corporation common stock 28
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Subject: acounting
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