ACC 306 Week 1 DQ 1 Equity Method

ACC 306 Week 1 DQ 1 Equity Method


J
Asked by 2 years ago
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P 12-13 - Miller Properties - Equity method ? LO5 LO6

On January 2, 2011, Miller Properties paid 19 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 2011.

The carrying amount of Marlon's net assets was 66 million. Miller estimated the fair value of those net as- sets to be the same except for a patent valued at 24 million above cost. The remaining amortization period for the patent is 10 years.

Marlon reported earnings of 12 million and paid dividends of 6 million during 2011. On December 31, 2011, Marlon's common stock was trading on the NYSE at per share.

Required:

  1. When considering whether to account for its investment in Marlon under the equity...
ACC 306
jacob

1 Answer

J
Answered by 2 years ago
0 points

Oh Snap! This Answer is Locked

ACC 306 Week 1 DQ 1 Equity Method

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Excerpt from file: P 1213 - Miller Properties - Equity method LO5 LO6 On January 2, 2011, Miller Properties paid 19 million for 1 million shares of Marlon Companys 6 million outstanding common shares. Millers CEO became a member of Marlons board of directors during the first quarter of 2011. The carrying amount of

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Asked: 2 years ago

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