Advanced Accounting
14th Edition
ISBN: 9781260247824
Author: Joe Ben Hoyle, Thomas F. Schaefer, Timothy S. Doupnik
Publisher: RENT MCG
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Belden, Inc., acquires 30 percent of the outstanding voting shares of Sheffield, Inc., on January 1, 2020, for $316,000, which gives
Belden the ability to significantly influence Sheffield. Sheffield has a net book value of $796,000 at January 1, 2020. Sheffield's asset
and liability accounts showed carrying amounts considered equal to fair values, except for a copyright whose value accounted for
Belden's excess cost over book value in its 30 percent purchase. The copyright had a remaining life of 16 years at January 1, 2020. No
goodwill resulted from Belden's share purchase.
Sheffield reported net income of $192,000 in 2020 and $232,000 of net income during 2021. Dividends of $64,000 and $96,000 are
declared and paid in 2020 and 2021, respectively. Belden uses the equity method.
a. On its 2021 comparative income statements, how much income would Belden report for 2020 and 2021 in connection with the
company's investment in Sheffield?
b. If Belden sells its entire investment in…
Belden, Inc., acquires 30 percent of the outstanding voting shares of Sheffield, Inc., on January 1, 2020, for $316,000, which gives Belden the ability to significantly influence Sheffield. Sheffield has a net book value of $812,000 at January 1, 2020. Sheffield’s asset and liability accounts showed carrying amounts considered equal to fair values, except for a copyright whose value accounted for Belden’s excess cost over book value in its 30 percent purchase. The copyright had a remaining life of 16 years at January 1, 2020. No goodwill resulted from Belden’s share purchase.
Sheffield reported net income of $180,000 in 2020 and $254,000 of net income during 2021. Dividends of $94,000 and $72,000 are declared and paid in 2020 and 2021, respectively. Belden uses the equity method.
On its 2021 comparative income statements, how much income would Belden report for 2020 and 2021 in connection with the company’s investment in Sheffield?
If Belden sells its entire investment in…
Belden, Inc., acquires 30 percent of the outstanding voting shares of Sheffield, Inc., on January 1, 2020, for $322,000, which gives
Belden the ability to significantly influence Sheffield. Sheffield has a net book value of $828,000 at January 1, 2020. Sheffield's asset
and liability accounts showed carrying amounts considered equal to fair values, except for a copyright whose value accounted for
Belden's excess cost over book value in its 30 percent purchase. The copyright had a remaining life of 16 years at January 1, 2020. No
goodwill resulted from Belden's share purchase.
Sheffield reported net income of $178,000 in 2020 and $248,000 of net income during 2021. Dividends of $62,000 and $84,000 are
declared and paid in 2020 and 2021, respectively. Belden uses the equity method.
a. On its 2021 comparative income statements, how much income would Belden report for 2020 and 2021 in connection with the
company's investment in Sheffield?
b. If Belden sells its entire investment in…
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Similar questions
- Belden, Inc., acquires 30 percent of the outstanding voting shares of Sheffield, Inc., on January 1, 2020, for $304,000, which gives Belden the ability to significantly influence Sheffield. Sheffield has a net book value of $820,000 at January 1, 2020. Sheffield's asset and liability accounts showed carrying amounts considered equal to fair values, except for a copyright whose value accounted for Belden's excess cost over book value in its 30 percent purchase. The copyright had a remaining life of 16 years at January 1, 2020. No goodwill resulted from Belden's share purchase. Sheffield reported net income of $198,000 in 2020 and $252,000 of net income during 2021. Dividends of $74,000 and $90,000 are declared and paid in 2020 and 2021, respectively. Belden uses the equity method. a. On its 2021 comparative income statements, how much income would Belden report for 2020 and 2021 in connection with the company's investment in Sheffield? b. If Belden sells its entire investment in…arrow_forwardBelden, Inc., acquires 30 percent of the outstanding voting shares of Sheffield, Inc., on January 1, 2020, for $308,000, which gives Belden the ability to significantly influence Sheffield. Sheffield has a net book value of $820,000 at January 1, 2020. Sheffield’s asset and liability accounts showed carrying amounts considered equal to fair values, except for a copyright whose value accounted for Belden’s excess cost over book value in its 30 percent purchase. The copyright had a remaining life of 16 years at January 1, 2020. No goodwill resulted from Belden’s share purchase. Sheffield reported net income of $188,000 in 2020 and $232,000 of net income during 2021. Dividends of $82,000 and $82,000 are declared and paid in 2020 and 2021, respectively. Belden uses the equity method. On its 2021 comparative income statements, how much income would Belden report for 2020 and 2021 in connection with the company’s investment in Sheffield? If Belden sells its entire investment in…arrow_forwardBelden, Incorporated, acquires 30 percent of the outstanding voting shares of Sheffield, Incorporated, on January 1, 2023, for $316,000, which gives Belden the ability to significantly influence Sheffield. Sheffield has a net book value of $796,000 at January 1, 2023. Sheffield's asset and liability accounts showed carrying amounts considered equal to fair values, except for a copyright whose value accounted for Belden's excess cost over book value in its 30 percent purchase. The copyright had a remaining life of 16 years at January 1, 2023. No goodwill resulted from Belden's share purchase. Sheffield reported net income of $192,000 in 2023 and $232,000 of net income during 2024. Dividends of $64,000 and $96,000 are declared and paid in 2023 and 2024, respectively. Belden uses the equity method. Required: a. On its 2024 comparative income statements, how much income would Belden report for 2023 and 2024 in connection with the company's investment in Sheffield? b. If Belden sells its…arrow_forward
- Belden, Incorporated, acquires 30 percent of the outstanding voting shares of Sheffield, Incorporated, on January 1, 2023, for $306,000, which gives Belden the ability to significantly influence Sheffield. Sheffield has a net book value of $792,000 at January 1, 2023. Sheffield's asset and liability accounts showed carrying amounts considered equal to fair values, except for a copyright whose value accounted for Belden's excess cost over book value in its 30 percent purchase. The copyright had a remaining life of 16 years at January 1, 2023. No goodwill resulted from Belden's share purchase. Sheffield reported net income of $160,000 in 2023 and $230,000 of net income during 2024. Dividends of $100,000 and $98,000 are declared and paid in 2023 and 2024, respectively. Belden uses the equity method. Required: a. On its 2024 comparative income statements, how much income would Belden report for 2023 and 2024 in connection with the company's investment in Sheffield? b. If Belden sells its…arrow_forwardBelden, Incorporated, acquires 30 percent of the outstanding voting shares of Sheffield, Incorporated, on January 1, 2023, for $306,000, which gives Belden the ability to significantly influence Sheffield. Sheffield has a net book value of $792,000 at January 1, 2023. Sheffield's asset and liability accounts showed carrying amounts considered equal to fair values, except for a copyright whose value accounted for Belden's excess cost over book value in its 30 percent purchase. The copyright had a remaining life of 16 years at January 1, 2023. No goodwill resulted from Belden's share purchase. Sheffield reported net income of $160,000 in 2023 and $230,000 of net income during 2024. Dividends of $100,000 and $98,000 are declared and paid in 2023 and 2024, respectively. Belden uses the equity method. Required: a. On its 2024 comparative income statements, how much income would Belden report for 2023 and 2024 in connection with the company's investment in Sheffield? b. If Belden sells its…arrow_forwardBelden, Incorporated, acquires 30 percent of the outstanding voting shares of Sheffield, Incorporated, on January 1, 2023, for $306,000, which gives Belden the ability to significantly influence Sheffield. Sheffield has a net book value of $792,000 at January 1, 2023. Sheffield's asset and liability accounts showed carrying amounts considered equal to fair values, except for a copyright whose value accounted for Belden's excess cost over book value in its 30 percent purchase. The copyright had a remaining life of 16 years at January 1, 2023. No goodwill resulted from Belden's share purchase. Sheffield reported net income of $160,000 in 2023 and $230,000 of net income during 2024. Dividends of $100,000 and $98,000 are declared and paid in 2023 and 2024, respectively. Belden uses the equity method. Required: a. On its 2024 comparative income statements, how much income would Belden report for 2023 and 2024 in connection with the company's investment in Sheffield? b. If Belden sells its…arrow_forward
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