Tuecke Concrete acquired 20% of the outstanding common stock of Drew, Inc. on January 1,2012,...
50.1K
Verified Solution
Link Copied!
Question
Accounting
Tuecke Concrete acquired 20% of the outstanding common stock of Drew, Inc. on January 1,2012, by paying $1,100,000 for
40,000 shares. Drew declared and paid a $0.50 per share cash dividend on June 30 and again on December 31, 2012. Drew
reported a net income of $600,000 for the year. On December 31, 2012, the market price of Drew's common stock was $30 per share.
Instructions
(a) Prepare the journal entries for Tuecke's Concrete for 2012, assuming Tuecke cannot exercise significant influence over Drew.
(Use the cost method and assume Drew common stock should be classified as available-for-sale.)
(b) Prepare the journal entries for Tuecke's Concrete for 2012, assuming Tuecke can exercise significant influence over Drew.
(Use the equity method.)
(c) Indicate the balance sheet, and income statement account balances on December 31, 2012, under each method of accounting.
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!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.