REFERENCE: Ref.06_14
Thomas Inc.had the following stockholders' equity accounts as of January 1,2009: Kuried Co.acquired all of the voting common stock of Thomas on January 1,2009,for $20,656,000.The preferred stock remained in the hands of outside parties and had a fair value of $3,060,000.A database valued at $656,000 was recognized and amortized over five years.
During 2009,Thomas reported earning $630,000 in net income and paid $504,000 in total cash dividends.Kuried decided used the equity method to account for this investment.
-What was Kuried's balance in the Investment in Thomas Inc.account as of December 31,2009?

Question

REFERENCE: Ref.06_14
Thomas Inc.had the following stockholders' equity accounts as of January 1,2009:  Kuried Co.acquired all of the voting common stock of Thomas on January 1,2009,for $20,656,000.The preferred stock remained in the hands of outside parties and had a fair value of $3,060,000.A database valued at $656,000 was recognized and amortized over five years.
During 2009,Thomas reported earning $630,000 in net income and paid $504,000 in total cash dividends.Kuried decided used the equity method to account for this investment.
-What was Kuried's balance in the Investment in Thomas Inc.account as of December 31,2009?

Quizplus · Accepted Answer

The Answer of REFERENCE: Ref.06_14
Thomas Inc.had the following stockholders' equity accounts as of January 1,2009:  Kuried Co.acquired all of the voting common stock of Thomas on January 1,2009,for $20,656,000.The preferred stock remained in the hands of outside parties and had a fair value of $3,060,000.A database valued at $656,000 was recognized and amortized over five years.
During 2009,Thomas reported earning $630,000 in net income and paid $504,000 in total cash dividends.Kuried decided used the equity method to account for this investment.
-What was Kuried's balance in the Investment in Thomas Inc.account as of December 31,2009?

REFERENCE: Ref.06_14 Thomas Inc.had the Following Stockholders' Equity Accounts as of January