Perimeter, Inc. acquired 30 percent of South Co.'s (South) voting stock for $200,000 on January 1, 20X1. Perimeter's 30 percent interest in South gave Perimeter the ability to exercise significant influence over South's operating and financial policies. On that date, South reported assets of $500,000 and liabilities of $100,000. South had equipment with a book value of $60,000 that was actually worth $160,000. The equipment had a remaining useful life of five years. During 20X1, South reported net income of $80,000 and paid dividends of $50,000. What amount of income should Perimeter recognize in 20X1 as a result of this investment

Accounting for Equity Investments Harper purchased 35% of the outstanding shares of Maxwell Company on January 1 of the current year for $64,000 in cash. Maxwell's plant assets with a book value of $131,200 were appraised at $136,000, and Maxwell has an unrecorded patent with a fair value of $4,000. All of the remaining assets and liabilities were appraised at values approximating their book values. Assume that the undervalued plant assets have an estimated remaining useful life of 20 years, and the unrecorded patent has a useful life of 5 years. During the year, Maxwell reported net income of $52,000 and paid cash dividends to shareholders totaling $28,000. Required Prepare the entry to record Harper Company's equity in the earnings of Maxwell Company, including any amortization of the excess of fair value over book value of assets acquired in the financial statement effects template. Note: For each account category, indicate the appropriate account name. Enter "N/A" for any account…

QUESTION 36 Perth Corporation owns 90 percent of Sydney Company's stock. At the end of 20X8, Perth and Sydney reported the following partial operating results and inventory balances:   PerthCorporation SydneyCompany Total sales $ 500,000   $ 350,000   Sales to Sydney Company   100,000         Sales to Perth Corporation         150,000   Net income         15,000   Operating income (excluding investment income from Sydney)   56,000         Inventory on hand, December 31, 20X8, purchased from:             Sydney Company   36,000         Perth Corporation         31,000   Perth regularly prices its products at cost plus a 30 percent markup for profit. Sydney prices its sales at cost plus a 10 percent markup. The total sales reported by Perth and Sydney include both intercompany sales and sales to nonaffiliates.Based on the information given above, what amount of sales will be reported in the consolidated income statement for 20X8?     $800,000…

Situation 1Waterway Cosmetics acquired 10% of the 189,000 shares of common stock of Martinez Fashion at a total cost of $12 per share on March 18, 2020. On June 30, Martinez declared and paid $77,300 cash dividend to all stockholders. On December 31, Martinez reported net income of $122,300 for the year. At December 31, the market price of Martinez Fashion was $13 per share.Situation 2Wildhorse, Inc. obtained significant influence over Seles Corporation by buying 30% of Seles’s 32,100 outstanding shares of common stock at a total cost of $9 per share on January 1, 2020. On June 15, Seles declared and paid cash dividends of $32,700 to all stockholders. On December 31, Seles reported a net income of $78,800 for the year.Prepare all necessary journal entries in 2020 for both situations.