On January 1, Lifestyle Pools purchased 30% of Marshall Fence’s common stock for $660,000 cash. By the end of the year, Marshall Fence reported net income of $156,000 and paid dividends of $56,000 to all shareholders. Required: For Lifestyle Pools, record the initial purchase and its share of Marshall Fence’s net income and dividends for the year.
On January 1, Lifestyle Pools purchased 30% of Marshall Fence’s common stock for $660,000 cash. By the end of the year, Marshall Fence reported net income of $156,000 and paid dividends of $56,000 to all shareholders. Required: For Lifestyle Pools, record the initial purchase and its share of Marshall Fence’s net income and dividends for the year.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On January 1, Lifestyle Pools purchased 30% of Marshall Fence’s common stock for $660,000 cash. By the end of the year, Marshall Fence reported net income of $156,000 and paid dividends of $56,000 to all shareholders.
Required:
For Lifestyle Pools, record the initial purchase and its share of Marshall Fence’s net income and dividends for the year.
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