Recommended problems for Chapter 4

20 - 26

Note: solutions for # 25 are wrong. Investment income accrued for 1/1 - 10/1/2011 should be:
Sub NI 120 - amort 14 = 106 x 9/12months x 70% ownership = 55.65
Dividends accrued should be: 40 x 9/12 x 70% = 21
Investment account balance at 10/1/2011 should then be: 1119.65
Because control is not lost, a credit to APIC would be 31.05.