Acker Inc Bought 40% of Howell Co Howell Reported Net Income of $100,000 in 2012 and $120,000

question 107

Multiple Choice

Acker Inc. bought 40% of Howell Co. on January 1, 2012 for $576,000. The equity method of accounting was used. The book value and fair value of the net assets of Howell on that date were $1,440,000. Acker began supplying inventory to Howell as follows: $\begin{array}{llll}& \text { Cost to } & \text { Transfer } & \text { Amount Held by } \\\text { Year } & \text { Acker } & \text { Price } & \text { Howell at Year-End }\\\hline2012 & \mathbf{\$} 55,000 & \$ 75,000 & \$ 15,000 \\2013 & \$ 70,000 & \$ 110,000 & \$ 55,000\end{array}$ Howell reported net income of $100,000 in 2012 and $120,000 in 2013 while paying $40,000 in dividends each year. What is the balance in Acker's Investment in Howell account at December 31, 2013?

• A)$624,000.
• B)$636,000.
• C)$646,000.
• D)$656,000.
• E)$666,000.

Learn to use data tables for Monte Carlo simulations in Excel.

Understand the differences and uses of Monte Carlo and Latin Hypercube sampling.

Learn to interpret and apply statistical techniques such as bootstrapping within Crystal Ball.

Understand the application of tornado and sensitivity charts for decision making.

---

Definitions:

Form Design View

The mode in database management systems where users can design and edit the layout and functionality of forms used for data entry and display.

Date Control

A graphical interface element that allows users to input or select dates, typically through a calendar popup.

Report Layout View

The mode in database applications that allows users to see how a report will look while providing tools to modify design elements at the same time.

Page N

Typically refers to a specific page number within a document or application, denoted as 'N' to represent a variable page.