Chat with us, powered by LiveChat Hanson Corporation purchases a 10% interest in Nov - BonPapers

Hanson Corporation purchases a 10% interest in Nov

Hanson Corporation purchases a 10% interest in Novic Company on January 1, 2016, and an additional 15% interest on January 1, 2018. These investments cost Hanson Corporation $80,000 and $110,000, respectively. The following stockholders’ equities of Novic Company are available: Any excess of cost over book value on the original investment is attributed to goodwill. Any excess on the second purchase is attributable to equipment with a 4-year life. Novic Company has income of $30,000, $30,000, and $40,000 for 2016, 2017, and 2018, respectively. Novic pays dividends of $0.20 per share in 2017 and 2018. Ignore income tax considerations, and assume equity method adjusting entries are made at the end of the calendar year only. Required 1. Prepare the cost-to-equity conversion entry on January 1, 2018, when Hanson’s investment in Novic Company first exceeds 20%. Any supporting schedules should be in good form. 2. Prepare the December 31, 2018, equity adjustment on Hanson’s books. Provide supporting calculations in good form.

Order an Excellent Paper with Bonpapers.com Writing Service

Bonpaper is a Custom Research Paper Writing service based in USA that is Available 24/7 to cater your needs. We have huge experience of writing essays about every possible topic. We have access to the online libraries, peer-journals, and news sites which makes it possible to gather enough data about the topic. 

We provide the plagiarism-free and grammatically perfect essay writing service to our clients. We have written hundreds of essays so far and our clients have gained excellent results as well.

Need Assignment Help?