Carnes Co Decided to Use the Partial Equity Method to Account

question 116

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 2013, 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?

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Definitions:

UCC

The Uniform Commercial Code, a comprehensive set of laws governing commercial transactions in the United States, designed to standardize and simplify the laws across states.

Damages

Monetary compensation awarded by a court to a person who has suffered loss or harm due to the unlawful act or negligence of another.

Breach

The violation or infringement of a law, duty, or other form of agreement.

Contractual Provision

Specific clauses or terms included within a contract that dictate the obligations, rights, or conditions for the involved parties.