Gator Co: Equity method for Investment in Subsidiary
AE17-13 (Equity Method)
Gator Co. invested $1,120,000 in Demo Co. for 25% of its
outstanding stock. Demo Co. pays out 40% of net income in dividends
each year.
Use the information in the following T-account for the
investment in Demo to answer the following questions.
Investment in Demo Co.
1,120,000
145,000
58,000
(a) How much was Gator Co.’s share of Demo Co.’s net income
for the year? $________________________________
(b) How much was Gator Co.’s share of Demo Co.’s dividends
for the year? $________________________________
(c) What was Demo Co.’s total net income for the year?
$________________________________
(d) What was Demo Co.’s total dividends for the year?
$________________________________Your tutorial shows you the
journal entries that would impact the investment account and the
rule. The computations are in excel for you.
Gator Co: Equity method for Investment in Subsidiary
AE17-13 (Equity Method)
Gator Co. invested $1,120,000 in Demo Co. for 25% of its
outstanding stock. Demo Co. pays out 40% of net income in dividends
each year.
Use the information in the following T-account for the
investment in Demo to answer the following questions.
Investment in Demo Co.
1,120,000
145,000
58,000
(a) How much was Gator Co.’s share of Demo Co.’s net income
for the year? $________________________________
(b) How much was Gator Co.’s share of Demo Co.’s dividends
for the year? $________________________________
(c) What was Demo Co.’s total net income for the year?
$________________________________
(d) What was Demo Co.’s total dividends for the year?
$________________________________Your tutorial shows you the
journal entries that would impact the investment account and the
rule. The computations are in excel for you.
Gator Co: Equity method for Investment in Subsidiary
AE17-13 (Equity Method)
Gator Co. invested $1,120,000 in Demo Co. for 25% of its
outstanding stock. Demo Co. pays out 40% of net income in dividends
each year.
Use the information in the following T-account for the
investment in Demo to answer the following questions.
Investment in Demo Co.
1,120,000
145,000
58,000
(a) How much was Gator Co.’s share of Demo Co.’s net income
for the year? $________________________________
(b) How much was Gator Co.’s share of Demo Co.’s dividends
for the year? $________________________________
(c) What was Demo Co.’s total net income for the year?
$________________________________
(d) What was Demo Co.’s total dividends for the year?
$________________________________Your tutorial shows you the
journal entries that would impact the investment account and the
rule. The computations are in excel for you.
Gator Co: Equity method for Investment in Subsidiary
AE17-13 (Equity Method)
Gator Co. invested $1,120,000 in Demo Co. for 25% of its
outstanding stock. Demo Co. pays out 40% of net income in dividends
each year.
Use the information in the following T-account for the
investment in Demo to answer the following questions.
Investment in Demo Co.
1,120,000
145,000
58,000
(a) How much was Gator Co.’s share of Demo Co.’s net income
for the year? $________________________________
(b) How much was Gator Co.’s share of Demo Co.’s dividends
for the year? $________________________________
(c) What was Demo Co.’s total net income for the year?
$________________________________
(d) What was Demo Co.’s total dividends for the year?
$________________________________Your tutorial shows you the
journal entries that would impact the investment account and the
rule. The computations are in excel for you.
