Work backwards to roll-forward Zach's equity: Given 12/31/2009 equity (BV) = 390
1/1/08 280
+NI + 80
- Div - 30
1/1/09 330
+NI + 100
- Div -40
12/31/09 390
The market values given are for 12/31 of the particular year. (So the 12/31/2008 market value adjustment will be for 8,000)
2009 Equity in Investee Income:
Z NI 100 x .25 = 25
- Amort 1 (1)
- Amort 2 (1.2)
22.8
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About Advanced Financial Topics
- Carly Andrews
- This course covers accounting for business combinations, preparation of consolidated financial statements, segment reporting, foreign currency transactions, and pensions.
2 comments:
Does $60,000 need to be multiplied by 15%?
I think we discussed this in the grad class only - but the $60K mkt value is for the specific investment. So no, it does not need to be multiplied by 15% - in effect, it already has been.
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