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    Advanced Accounting - Cashen Co. and Janex Corp.

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    Cashen Co. paid $2,400,000 to purchase all of the common stock of Janex Corp. on January 1, 2001. Janex's reported earnings for 2003 totaled $432,000, and it paid $120,000 in dividends during the year. The amortization of allocations related to the investment was $24,000. Cashen's net income, not including the investment, was $3,180,000, and it paid dividends of $900,000.

    23. On the consolidated financial statements, what amount should have been shown for Equity in Subsidiary Earnings?
    A) $432,000
    B) $ 0
    C) $408,000
    D) $120,000
    E) $312,000

    24. On the consolidated financial statements, what amount should have been shown for Consolidated Dividends?
    A) $ 900,000
    B) $1,020,000
    C) $ 876,000
    D) $ 996,000
    E) $ 948,000

    25. What is the amount of Consolidated Net Income?
    A) $3,180,000
    B) $3,612,000
    C) $3,300,000
    D) $3,588,000
    E) $3,420,000

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    https://brainmass.com/business/accounting/advanced-accounting-cashen-co-and-janex-corp-122687

    Solution Preview

    (23) Janex (subsidiary) reported net income of $432,000, and it paid $120,000 in dividends during the year. Hence, Janex's retained earnings = 432,000 - 120,000 = ...

    Solution Summary

    The solution answers questions on the financial statements for Cashen Co. and Janex Corp.

    $2.19

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