Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. if elstone company acquired a 20% interest in alle

If Elstone Company acquired a 20% Interest in Alley Company on December 31, 2003 for...

80.2K

Verified Solution

Question

Accounting

image
If Elstone Company acquired a 20% Interest in Alley Company on December 31, 2003 for P90,000 and during 2004 Alley Company had net Income of P50,000 and pald a cash dividend of P20,000, applying the fair value method would give a debit balance in the Investment In Alley Company Stock account at the end of 2004 of The summarized balance sheets of Elstone Company and Alley Company as of December 31, 2004 are as follows: Elstone Company Balance Sheet December 31, 2004 Assets P800,000 Liabilities P100,000 Capital stock 400,000 Retained earnings 300,000 Total equities P800,000 Alley Company Balance Sheet December 31, 2004 Assets P600,000 Liabilities Capital stock Retained earrings Total equities P150,000 370.000 80,000 P600,000 74,000 90,000 100,000 None of these

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students