Carnes Co Decided to Use the Partial Equity Method to Account

question 19

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 equity accounting?

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Definitions:

Standard Deviation

A statistical measure of the dispersion or spread of data points in a data set.

Tax Rebate

A refund on taxes paid, typically when the tax liability is less than the taxes paid.

Achievement Test

A test designed to assess a person's knowledge or proficiency in a particular area or subject.

Standard Deviation

The square root of the variance, representing the distribution of a dataset in relation to its mean.