On January 1, 2012, Jumper Co

question 73

Essay

On January 1, 2012, Jumper Co. acquired all of the common stock of Cable Corp. for $540,000. Annual amortization associated with the purchase amounted to $1,800. During 2012, Cable earned net income of $54,000 and paid dividends of $24,000. Cable's net income and dividends for 2013 were $86,000 and $24,000, respectively.
Required:
Assuming that Jumper decided to use the partial equity method, prepare a schedule to show the balance in the investment account at the end of 2013.

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Definitions:

Grapevine

An informal channel of communication, often characterized by rumor, gossip, or unofficial information, within an organization or community.

Organizations

Entities, either public or private, constructed for a specific purpose, characterized by structures and efforts towards collective goals.

Vertical Communication

Messages that are communicated according to an organization’s chain of command by flowing both upward and downward.

Organizations

Entities comprising multiple people working together towards common objectives, structured to coordinate their activities and resources.