Term
FAIR VALUE METHOD:
On January 2, 2014, Maxi Co. acquired 48,000 shares (20% of Mini Co's common stock) at a cost of $10 a share. |
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Definition
Equity Investments 48,000
Cash 48,000 |
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Term
EQUITY METHOD:
On January 2, 2014, Maxi Co. acquired 48,000 shares (20% of Mini Co's common stock) at a cost of $10 a share. |
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Definition
Equity Investments 48,000
Cash 48,000 |
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Term
FAIR VALUE METHOD:
For the year 2014, Mini Co. reported net income of $200,000 |
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Definition
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Term
EQUITY METHOD:
For the year 2014, Mini Co. reported net income of $200,000 |
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Definition
Equity Investment 40,000
Investment Income 40,000 |
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Term
FAIR VALUE METHOD:
At December 31, 2014, the 48,000 shares of Mini Co. have a fair value (market price) of $12 a share |
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Definition
Fair value adjustment
AFS) 96,000
Unrealized holding
gain or loss - equity 96,000 |
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Term
EQUITY METHOD:
At December 31, 2014, the 48,000 shares of Mini Co. have a fair value (market price) of $12 a share |
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Definition
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Term
FAIR VALUE METHOD:
On January 28, 2015, Mini Co. announced and paid a dividend of 100,000 |
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Definition
Cash 20,000
Dividend Revenue 20,000 |
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Term
EQUITY METHOD:
On January 28, 2015, Mini Co. announced and paid a dividend of 100,000 |
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Definition
Cash 20,000
Equity Investments 20,000 |
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Term
FAIR VALUE METHOD:
For the year 2015, Mini reported a net loss of 50,000 |
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Definition
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Term
EQUITY METHOD:
For the year 2015, Mini reported a net loss of 50,000 |
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Definition
Investment loss 10,000
Equity Investments 10,000 |
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Term
| At December 31, 2015, the Mini Co. 48,000 shares have a fair value of $11 per share |
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Definition
Unrealized holding gain
or loss - equity 48,000
Fair value adjustment
(available for sale) 48,000 |
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Term
EQUITY METHOD:
At December 31, 2015, the Mini Co. 48,000 shares have a fair value of $11 per share |
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Definition
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