Carnes Co Decided to Use the Partial Equity Method to Account

question 114

Essay

Carnes Co. decided to use the partial equity method to account for its investment in Domino Corp. An unamortized trademark associated with the acquisition was $30,000, and Carnes decided to amortize the trademark over ten years. For 2011, Carnes' Equity in Subsidiary Earnings was $78,000.
Required:
What balance would have been in the Equity in Subsidiary Earnings account if Carnes had used the equity method?

---

Definitions:

Hypovolemic Shock

A critical condition resulting from severe blood or fluid loss, leading to insufficient blood flow to organs.

Hematemesis

The vomiting of blood.

Wound

An injury to living tissue, typically the skin, caused by a cut, blow, or other impact, usually one in which the skin is cut or broken.

Good Samaritan Laws

Legislation designed to protect individuals who assist those who are injured or in danger, shielding them from liability if they voluntarily provide emergency care without expectation of compensation.