acc311.1 - 8 a) Initial Investment account 200000...

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1 a) 200000 x .25 = 50000 b) 300000 + 50000 - 12000 = 338000 2 Price paid 800000 Minus BV of net assets (5mil - 3mil) x .30 600000 Excess of price paid over BV 200000 Trademark 200000/5 x 2 -80000 120000 NI in 2009 and 2010 350000 x .30 105000 225000 Dividends 140000 x .30 -42000 Answer 183000 3 Price Paid 800000 Minus BV of net assets (5mil - 3mil) x .30 600000 Excess paid over BV 200000 (500000 - 200000) x .30 90000 110000 110000/5 -22000 Equity Income 200000 x .30 90000 Answer 68000 4 Calculate gross profit percentage (150000 - 100000)/150000 0.33 Ending Inventory on Ramos Books 60000 Unrealized gain in ending Invetory .33 x 60000 20000 Ownership percentage 20000 x .40 8000 Answer Equity Income 8000 Investment 8000 5 Investment Income x ownership % 200000 x .40 80000 Unrealized Gain now Realized 8000 88000 Unrealized Gain Year 2011 -3200 Answer 84800 6 First 9 Months 100000 x .40 40000 Last 3 Months No entry Answer 40000 7 First 9 months 100000 x .10 10000 Last 3 months 40000 x .40 16000 Answer 26000
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Unformatted text preview: 8 a) Initial Investment account 200000 Investment Income 100000 x .50 50000 250000 Dividends 60000 x .50-30000 220000 Answer Gain on Sale 300000 - (.8 x 220000) 124000 b) Answer Investment account 220000 - (.8 x 220000) 44000 Eric Kim Accounting 311 T/TH 10:15 - 12:05 Computer project 1 Functional - oriented I/S: Sales $250,000 Cost of Goods Sold $130,000 Gross Profit $120,000 Operating Expenses $150,000 Net Income $(30,000) Cost Behavior - Oriented I/S Sales $250,000 Variable Costs $110,000 Contribution Margin $140,000 Fixed Costs $170,000 Net Income $(30,000) Calculation of Break - Even Point Break - Even Units = Fc/ Unit CM 2428.57 Data: Sales $250,000 Variable Cost of Goods Sold $40,000 Fixed Cost of Goods Sold $90,000 Variable Operating Expenses $70,000 Fixed Operating Expenses $80,000 Number of Units Produced and Sold 2000...
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acc311.1 - 8 a) Initial Investment account 200000...

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