_____ On 1/1/06, Platt acquired 75% of Slatt's outstanding common stock. The analysis of the Investment account (in thousands) as of that date under the parent company concept follows:
Additional information:
A.Slatt had net income of $300,000 in 2006.
B.Slatt declared dividends of $100,000 in 2006.
C.Slatt paid dividends of $60,000 on 12/23/06. (The remaining $40,000 of dividends declared in 2006 was paid on 1/10/07.)
D.Platt uses the equity method of accounting.
E.The undervalued equipment has a 10-yr. remaining life.
What is the parent's general ledger balance in the Equity in Net Income of Subsidiary account at year-end?

Question

_____ On 1/1/06, Platt acquired 75% of Slatt's outstanding common stock. The analysis of the Investment account (in thousands) as of that date under the parent company concept follows:
 Additional information:
A.Slatt had net income of $300,000 in 2006.
B.Slatt declared dividends of $100,000 in 2006.
C.Slatt paid dividends of $60,000 on 12/23/06. (The remaining $40,000 of dividends declared in 2006 was paid on 1/10/07.)
D.Platt uses the equity method of accounting.
E.The undervalued equipment has a 10-yr. remaining life.
What is the parent's general ledger balance in the Equity in Net Income of Subsidiary account at year-end?

Quizplus · Accepted Answer

The Answer of _____ On 1/1/06, Platt acquired 75% of Slatt's outstanding common stock. The analysis of the Investment account (in thousands) as of that date under the parent company concept follows:
 Additional information:
A.Slatt had net income of $300,000 in 2006.
B.Slatt declared dividends of $100,000 in 2006.
C.Slatt paid dividends of $60,000 on 12/23/06. (The remaining $40,000 of dividends declared in 2006 was paid on 1/10/07.)
D.Platt uses the equity method of accounting.
E.The undervalued equipment has a 10-yr. remaining life.
What is the parent's general ledger balance in the Equity in Net Income of Subsidiary account at year-end?

_____ on 1/1/06, Platt Acquired 75% of Slatt's Outstanding Common