Explore BrainMass
Share

Jumper Co and Cable Corp

This content was STOLEN from BrainMass.com - View the original, and get the already-completed solution here!

On January 1, 2010, Jumper Co. acquired all of the common stock of Cable Corp. for $540,000. Annual amortization associated with the purchase amounted to $1,800. During 2010, Cable earned net income of $54,000 and paid dividends of $24,000. Cable's net income and dividends for 2011 were $86,000 and $24,000 respectively.
Assuming that Jumper decided to use the partial equity method, prepare a schedule to show the balance in the investment account at the end of 2011.

© BrainMass Inc. brainmass.com October 25, 2018, 8:54 am ad1c9bdddf
https://brainmass.com/business/accounting/jumper-co-and-cable-corp-556944

Solution Summary

Your tutorial is attached showing a T account of the investment in indicating how the net income and dividends were handled with instructional notes.

$2.19
See Also This Related BrainMass Solution

Disney Audit

For your group project, consider the Walt Disney Company (http://corporate.disney.go.com/). Using the guidelines established in Chapter 11 of your text, produce a Strategic Audit for the Walt Disney Company. As you produce your Strategic Audit, make sure to include all eight sections. (see attachment)

IFAS, EFAS, and SFAS tables are to be presented in Excel format, separate from the rest of the assignment, which is to be written in a Word file. As a reminder, two files are to be submitted: One Excel file (counting for three pages) and one Word file (up to seven pages double-spaced).

You will be graded on your knowledge of the software in building the MS Excel tables, and on your ability to communicate in writing and present your arguments. You will also be graded on your ability to analyze socio-cultural, political-legal, technological, and financial data to justify your available strategies and the one(s) you recommend, and finally on your critical thinking and problem solving abilities in justifying your set of strategies.

View Full Posting Details