Accy 510 Equity Method 2nd Homework Problem

Accy 510 Equity Method 2nd Homework Problem - Accy 510...

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Accy 510 Equity Method 2 nd Homework Assignment Trent Inc. purchased 3,000 of the 10,000 shares outstanding of Jenkins Company on 1/1/2011 for $7 per share. Jenkins Company’s balance sheet, along with fair value measures on 1/1/2011 were: Jenkins Jenkins ASSETS Book Fair Cash $ 4,842 $ 4,842 Investment securities 45,166 41,682 Inventories 22,897 27,453 Property, plant and equipment - net 72,895 75,063 Total assets 145,800 149,040 LIABILITIES Accounts payable 22,398 22,149 Long-term debt 52,994 52,994 EQUITY Contributed capital 68,184 Retained earnings 2,224 Total liabilities and equity 145,800 In 2011 : - Jenkins sold most of its beginning inventory during the year. Jenkins’ historical cost and fair value estimate on 1/1/2011 for the inventory sold were $20,108 and $23,624 respectively. Jenkins sold the inventory to external customers for $24,000 in cash. At the end of 2011, Jenkins had not sold the rest of the 2011 beginning inventory ($2,789 in book value, $3,829 in fair value as of 1/1/2011).
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This note was uploaded on 02/16/2012 for the course ACCY 510 taught by Professor Staff during the Fall '08 term at University of Illinois, Urbana Champaign.

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Accy 510 Equity Method 2nd Homework Problem - Accy 510...

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