(Answered) On january 1 2010 doe company purchased 3000 of the 10000

Accounting

On January 1, 2010 Doe Company purchased 3,000 of the 10,000 common shares outstanding of the Ray Company for $15 per share and obtained significant influence. Doe amortizes its patents over 10 years. The December 31, 2009 condensed balance sheet of the Ray Company is shown here:

1652_268-B-A-L (3156)-1.png

Doe Company was unable to determine the fair value of the Ray Company identifiable net assets shown on the preceding balance sheet. It did, however, determine that Ray Company uses the straight line method (no residual value) to depreciate its fixed assets and to amortize its patents over 20 years and 10 years, respectively. At the end of 2010 Ray Company disclosed the following condensed income statement and retained earnings statement for 2010:

2294_268-B-A-L (3156)-2.png

Required:
Prepare all the 2010 journal entries that Doe should make related to this investment. Show and label all supportingcalculations.

View complete question

Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91534833
Price:- $12

Verified Expert

Priced at $24 Now at $12, Verified Solution

Have any Question?Write your Review or question?

Related Questions in Accounting Basics

Question - maggie vitteta single works 38 hours per week at

Question - Maggie Vitteta, single, works 38 hours per week at $14.00 an hour. How much is taken out for federal income tax with one withholding exemption?

Question - on january 1 2017 pina corporation purchased 333

Question - On January 1, 2017, Pina Corporation purchased 333 of the $1,000 face value, 9%, 10-year bonds of Walters Inc. The bonds mature on January 1, 2027, and pay interest annually beginning January 1, 2018. Pina pur ...

Question - the following list of accounts appear in

Question - The following list of accounts appear in alphabetical order and were taken from ABC Corporation's ledger as of December 31, 2018. The Accounts Payable records were missing. Accounts Payable $? Inventory $7,000 ...

Question - on december 31 2017 cheyenne company signed a

Question - On December 31, 2017, Cheyenne Company signed a $1,054,800 note to Ayayai Bank. The market interest rate at that time was 11%. The stated interest rate on the note was 9%, payable annually. The note matures in ...

Question during the current year merchandise is sold for

Question: During the current year, merchandise is sold for $18,300 cash and $295,700 on account. The The cost that is reported as an expense when merchandise is sold.cost of the merchandise sold is $188,000. What is the ...

Question - vestorville company reported the following

Question - Vestorville Company reported the following results from last year's operations Sales 1,000,000 Variable expenses 300,000 Contribution margin 700,000 Fixed expenses 500,000 Net operating income 200,000 Average ...

Question - white mountain sled company manufactured 3000

Question - White Mountain Sled Company manufactured 3,000 Children's snow sleds during November. The following variable overhead data relates to November: Budgeted variable overhead cost per unit $12.00 Actual variable m ...

Question - at december 31 2016 grouper corporation reported

Question - At December 31, 2016, Grouper Corporation reported current assets of $384,870 and current liabilities of $206,100. The following items may have been recorded incorrectly. 1. Goods purchased costing $22,150 wer ...

Question - parent inc purchased all of the outstanding

Question - Parent Inc. purchased all of the outstanding shares of Sub Ltd. on January 1, Year 1 for $214,000. Amortization of the acquisition differential amounted to $16,000 in each of Years 1 and 2. Parent Inc. reporte ...

Question - don smiths wife died in january while still

Question - Don Smith's wife died in January while still employed and, as her beneficiary, he began receiving an annuity of $147 per month. There was no investment in the contract after June 30, 2013. The investment in th ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Accounting Basics Expert