Equity method for stock investment
Ex 13-11  Equity method for stock investment                                                      ObJ. 3 On January 4, 2016, Spandella Company purchased 175,000 shares of Filington Company directly from one of the founders for a price of $30 per share. Filington has  500,000
shares outstanding, including the Penman shares. On July 2, 2016, Filington paid $620,000
in total dividends to its shareholders. On December 31, 2016, Filington reported a net income of $1,050,000 for the year. Spandella uses the equity method in accounting for its investment in Filington.
a.    Provide the Spandella Inc. journal entries for the transactions involving its investment in Filington Inc. during 2016.
b.   Determine the December 31, 2016, balance of the Investment in Filington Company. Stock account.
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Posted 29 May 2017 08:05 AM
My Price 9.00
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file 1496046155-1314926_1_636315651210665443_Equity-method-accounting.xlsx preview (200 words )
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