Pedro purchased 100% of the common stock of the Sanburn Company on January 1, 20X1, for 500,000. On that date, the stockholders’ equity of Sanburn…

Pedro purchased 100% of the common  of the Sanburn Company on January 1, 20X1, for 500,000. On that date, the stockholders’ equity of Sanburn Company was 380,000. On the purchase date, inventory of Sanburn Company, which was sold during 20X1, was understated by 20,000. Any remaining excess of cost over book value is attributable to patent with a 20 year life. The reported income and dividends paid by Sanburn Company were as follows:

20X1

Net Income 80,000

Dividends paid 10,000

20X2

Net Income 90,000

Dividends paid 10,000

Using the sophisticated (full) equity method, which of the following amounts are correct?

A. 20X1 Investment Income: 55,000, 12/31 20X1 Investment Account Balance: 555,000

B. 20X1 Investment Income: 55,000, 12/31 20X1 Investment Account Balance: 545,000

C. 20X1 Investment Income: 75,000, 12/31 20X1 Investment Account Balance: 565,000

D. 20X1 Investment Income: 80,000, 12/31 20X1 Investment Account Balance: 570,000

Show more

Calculate Your Essay Price
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more