Question Details

[solution] » Alex Inc, buys 40 percent of Steinbart Company on January 1,

Brief item decscription

Step-by-step solution file


Item details:

Alex Inc, buys 40 percent of Steinbart Company on January 1,
More:

Alex Inc, buys 40 percent of Steinbart Company on January 1, 2014, for $530,000. The equity method accounting is to be used. Steinbart's net assets on that date were $1.2 million. Any excess of cost over book value is attributable to a trade name with a 20 years remaining life, Steinbart immediately begins supplying inventory to Alex as follows:

Year         Cost to Steinbart          Transfer Price              Amnt Hld at yr end (trsfr price)

2014          $70,000                             $100,000                 $25,000

2015            96,000                               150,000                    45,000

Inventory held at end of one year by Alex is sold at the beginning of the next.

Steinbart reports net income of $80,000 in 2014 and $110,000 in 2015 while paying $30,000 in dividends each year. What is the investment in Steinbart balance (equity method) in Alex records in 2014 & 2015?


Pls show the working problem. Thanks

 







About this question:
STATUS
Answered
QUALITY
Approved
ANSWER RATING

This question was answered on: Feb 21, 2020

PRICE: $24

Solution~0001002177.zip (18.37 KB)

Buy this answer for only: $24

This attachment is locked

We have a ready expert answer for this paper which you can use for in-depth understanding, research editing or paraphrasing. You can buy it or order for a fresh, original and plagiarism-free copy (Deadline assured. Flexible pricing. TurnItIn Report provided)

Pay using PayPal (No PayPal account Required) or your credit card. All your purchases are securely protected by PayPal.
SiteLock

Need a similar solution fast, written anew from scratch? Place your own custom order

We have top-notch tutors who can help you with your essay at a reasonable cost and then you can simply use that essay as a template to build your own arguments. This we believe is a better way of understanding a problem and makes use of the efficiency of time of the student. New solution orders are original solutions and precise to your writing instruction requirements. Place a New Order using the button below.

Order Now