Pinta Company Purchased 40% of Snuggie Corporation on January 1

question 13

Essay

Pinta Company purchased 40% of Snuggie Corporation on January 1, 2017 for $150,000. Snuggie Corporation's balance sheet at the time of acquisition was as follows: During 2017, Snuggie Corporation reported net income of $30,000 and paid dividends of $9,000. The fair values of Snuggie's assets and liabilities were equal to their book values at the date of acquisition, with the exception of Building and Equipment, which had a fair value of $35,000 above book value. All buildings and equipment had a remaining useful life of five years at the time of the acquisition. The amount attributed to goodwill as a result of the acquisition in not impaired.
Required:
A. What amount of investment income will Pinta record during 2017 under the equity method of accounting?
B. What amount of income will Pinta record during 2017 under the cost method of accounting?
C. What will be the balance in the investment account on December 31, 2017 under the cost and equity method of accounting?

Understand the importance of fiber and its recommended intake.

Identify strategies to acquire necessary nutrients for specific populations.

Comprehend the role of sunlight in vitamin D production.

Understand the concept and significance of energy density in food.

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Definitions:

Poverty Rate

The percentage of the population that lives below the national poverty line, indicating the proportion of individuals or families with income levels below what is necessary for basic living conditions.

Hispanics

Referring to people of Spanish-speaking origin or ancestry, especially those living in the United States.

Lorenz Curves

A graphical representation used in economics to show the distribution of income or wealth within a population, indicating inequality.

Relative Distribution

A measure of how income or wealth is shared among individuals or groups within a society.