Home / Questions / On January 3 2011 Haskins Corporation acquired 40 percent of the outstanding common stock ...
On January 3, 2011, Haskins Corporation acquired 40 percent of the outstanding common stock of
Clem Company for $990,000. This acquisition gave Haskins the ability to exercise significant influence
over the investee. The book value of the acquired shares was $790,000. Any excess cost over
the underlying book value was assigned to a patent that was undervalued on Clem’s balance sheet.
This patent has a remaining useful life of 10 years. For the year ended December 31, 2011, Clem
reported net income of $260,000 and paid cash dividends of $80,000. At December 31, 2011, what
should Haskins report as its investment in Clem under the equity method?
May 22 2020 View more View Less
Identify whether each of the following reflects seasonal, structural, frictional or cyclical unemployment.a. A sales employee is laid off due to slow business after consu...May 06 2021
Desai Industries is analyzing an average-risk project, and the following data have been developed. Unit sales will be constant, but the sales price should increase with i...Aug 17 2020
Dale Emerson served as the chief financial officer for Reliant Electric Company, a distributor of electricity serving portions of Montana and North Dakota. Reliant was in...Aug 20 2021
Cobb-Douglas Production FunctionA manufacturer estimates that its production can be modeled by where is the number of units of labor and is the number of units of capit...Aug 13 2021
Meta Tag AbuseWeb designers use meta tags to enable search engines to easily categorize webpage content. Some web designers use meta tags that reflect popular search tren...Jun 20 2021
Although the impact of technology has created benefits for businesses and consumers alike, it has also provided a greater opportunity to cheat ethical and legal requireme...Jul 03 2021
What are the various designations associated with human resource management? >Jul 14 2020
What is the equation reaction of sulfuric acids in acid rain with marble and limestone? Both marble and limestone are primarily calcium carbonate.Jun 16 2021
For six of the MOE of the SUV (see Problem 6.4), describe an operational scenario for obtaining a measure of its effectiveness.Problem 6.4What is meant by “ MOE ” ? For t...Jun 11 2020
As dissatisfaction with public schools has increased, home schooling has grown in popularity. If a large number of parents decide to educate their children at home, and w...Jul 12 2021