(Answered) Question - matrix inc acquired 25 of neo enterprises for

Accounting

Question - Matrix, Inc., acquired 25% of Neo Enterprises for 52,000,000 on January 1, 2016. The fair value and book value of 25% of Neo's identifiable net assets was 52,000,000 and 51,600,000 on that date, and the difference was attributable to assets that would be depreciated over 10 years. During 2016 Neo recognized net income of 5500,000 and paid dividends of S400,000. Neo had a total fair value of 510,000,000 as of December 31, 2016.
Required:

(1) Prepare the journal entries necessary to account for the Neo investment, assuming that Matrix accounts for that investment as an equity method investment.

(2) Prepare the journal entries necessary to account for the Neo investment, assuming that Matrix elects the fair-value option.

View complete question

Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M92784223
Price:- $25

Verified Expert

Priced at $50 Now at $25, Verified Solution

Have any Question?Write your Review or question?

Related Questions in Accounting Basics

Question - family home and security inc sells super

Question - Family home and security, Inc sells super padlocks. It reported an increase in net sales from 5.0 billion in 2014 to 5.3 billion in 2015, and an increase in gross profit from 1.5 billion in 2014 to 1.7 billion ...

Question - how would the firm determine the cost

Question - How would the firm determine the cost effectiveness of purchasing the long term assets used by the firm over an extended period of time?

Question - beyer company is considering the purchase of an

Question - Beyer Company is considering the purchase of an asset for $180,000. It is expected to produce the following net cash flows. The cash flows occur evenly within each year. Assume that Beyer requires a 9% return ...

Question - given2018 pretax accounting income 4000002018

Question - Given 2018 Pretax Accounting Income: $400,000 2018 Municipal Bond Interest Income Included in Pretax Accounting Income: $20,000 2018 Warranty Expense of $70,000 for Accounting Purposes 2018 Actual Warranty Cos ...

Company accounting questions -a opperman ltd owns all the

COMPANY ACCOUNTING QUESTIONS - (A) Opperman Ltd owns all the share capital of Jewel Ltd. During the year ended 30 June 2018, Opperman Ltd paid a dividend of $20 000, and Jewel Ltd paid and declared dividends of $10 000 a ...

Question - mr garrett a single taxpayer has 16000 agi

Question - Mr. Garrett, a single taxpayer, has $16,000 AGI. Assume the taxable year is 2018. Use Standard Deduction Table. Married filing jointly and surviving spouses - $24,000 Married filing separately - 12,000 Head of ...

Question - hudson landscaping service bought equipment for

Question - Hudson landscaping service bought equipment for 10800 on January 1 2019. It has estimated useful life of five years and zero residual value. Hudson uses the straight line method to calculate depreciation and r ...

Question you manage a plant that mass-produces engines by

Question: You manage a plant that mass-produces engines by teams of workers using assembly machines. The technology is summarized by the production function q = 5KL where q is the number of engines per week, K is the num ...

Question - how do you find covered payroll on a schedule of

Question - How do you find covered payroll on a schedule of changes in net pension liability and related ratios chart? How do you find "New pension liability as a percentage of covered payroll"? Net change in plan fiduci ...

Question - the ap clerk of a company writes the checks for

Question - The A/P clerk of a company writes the checks for vendors, and the controller signs the checks. The A/P clerk has devised a plan to give herself a raise. She creates a new vendor for her friend's business and c ...

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