Business, 15.02.2020 02:13 notsobright10

On January 2, 2021, Miller Properties paid $27 million for 1 million shares of Marlon Company's 6 million outstanding common shares. Miller's CEO became a member of Marlon's board of directors during the first quarter of 2021. The carrying amount of Marlon's net assets was $112 million. Miller estimated the fair value of those net assets to be the same except for a patent valued at $30 million above cost. The remaining amortization period for the patent is 10 years. Marlon reported earnings of $51 million and paid dividends of $3 million during 2021. On December 31, 2021, Marlon's common stock was trading on the NYSE at $26.50 per share.

Answers: 3

Show answers

Answers

Answer from: mluz

The statements are as shown in the solution.

Explanation:

As the question is not visible here, completely, the similar question is found online and is solved for these values. The method is as follows:

For Income Statement

Investment Revenue(Share of Income) is calculated as

$IR=\frac{E_{reported}\times Shares}{Shares_{Outstanding}}$

Here

IR is the investment revenue which is to be calculated

E_reported are the reported earnings which is $51 million

Shares are given as 1 million.

Outstanding shares are given as 6 million

Solving for IR gives

$IR=\frac{E_{reported}\times Shares}{Shares_{Outstanding}}\\IR=\frac{51 Million\times 1 million}{6 million}\\IR=\frac{51 Million\times 1 }{6 }\\IR=\$ 8.5 Million$

Patent Amortization is calculated as

$PA=\frac{P_{value}\times \frac{Shares}{Shares_{Outstanding}}}{Years}$

Here

PA is the patent amortization value which is to be calculated

P_value is the value of patent which is $30 million

Shares are given as 1 million.

Outstanding shares are given as 6 million

Years is the period of 10 years.

Solving for PA gives

$PA=\frac{P_{value}\times \frac{Shares}{Shares_{Outstanding}}}{Years}\\PA=\frac{30 Million \times \frac{1 Million}{6 Million}}{10}\\PA=\$0.5 Million$

So the income statement is given as

Income Statement

1-Investment Revenue (Share of Revenue) | $8.5 Million

2-Patent Amortization Adjustment | ($0.5 Million)

-----------------------------------------------------------------------------------------

Net Income | $8.0 Million

For Investment Statement

Calculation of Dividend is given as

$Div=\frac{D_{reported}\times Shares}{Shares_{Outstanding}}$

Here

Div is the investment entry for dividend which is to be calculated

E_reported are the reported earnings which is $3 million

Shares are given as 1 million.

Outstanding shares are given as 6 million

$Div=\frac{D_{reported}\times Shares}{Shares_{Outstanding}}\\Div=\frac{\$3 Million\times 1 Million}{6 Million}\\Div=\$0.5 Million$

Now the statement of investment is given as

Investment in Company M shares

2021 | | | 2021 | |

| Cost | 27 | | Dividend | 0.5

| Share (income) | 8.5 | | Patent | 0.5

----------------------------------------------------------------------------------------------------------------- a |Total | 35.5 | | Total | 1.0

____________________________________________________________

Balance : $ 34.5 Million

For Statement of Cash Flows

Statement of Cash Flows

For Year Ending December 31, 2021

Cash Flow from Operating Activities

Dividends | $ 0.5 Million

Cash Flow from Investing Activities

Purchase of investment | ($ 27 Million)

Answer from: Quest

answer; ///after donning a gown, mask and eyewear;

Answer from: Quest

administrative jobs normally have someone answering phone calls and scheduling appointments, filing patient or customer information, making sure the front of the office looks nice to those who enter the building. administrative jobs can also include making sure the manager has everything they need for meetings, making delivers and much more. administrative jobs are important to most businesses as are customer service focused as they are often one of the first impressions a consumer sees of a business.

Another question on Business

Business, 21.06.2019 19:00

What does the consumer price index measure? a. the change in prices of all goods and services over time b. the change in prices of specific goods and services over time c. the change in prices of final goods and services over time

Answers: 1

Answer

Business, 21.06.2019 21:00

The following cost data relate to the manufacturing activities of chang company during the just completed year: manufacturing overhead costs incurred: indirect materials $ 15,800 indirect labor 138,000 property taxes, factory 8,800 utilities, factory 78,000 depreciation, factory 150,600 insurance, factory 10,800 total actual manufacturing overhead costs incurred $ 402,000 other costs incurred: purchases of raw materials (both direct and indirect) $ 408,000 direct labor cost $ 68,000 inventories: raw materials, beginning $ 20,800 raw materials, ending $ 30,800 work in process, beginning $ 40,800 work in process, ending $ 70,800 the company uses a predetermined overhead rate of $20 per machine-hour to apply overhead cost to jobs. a total of 20,500 machine-hours were used during the year. required: 1. compute the amount of underapplied or overapplied overhead cost for the year. 2. prepare a schedule of cost of goods manufactured for the year.

Answers: 3

Answer

Business, 22.06.2019 17:50

Which of the following is an element of inventory holding costs? a. material handling costs b. investment costs c. housing costs d. pilferage, scrap, and obsolescence e. all of the above are elements of inventory holding costs.

Answers: 1

Answer

Business, 22.06.2019 20:20

An economic theory that calls for workers to take control of factories is .

Answers: 3

Answer

You know the right answer?

On January 2, 2021, Miller Properties paid $27 million for 1 million shares of Marlon Company's 6 mi...

Questions