Response to the following problem:
The amount debited to the investment account when STU Co. acquires 80% of the common stock of VWY Co. for $300,000 cash is $300,000
1. On January 2, Peach Company purchases 35% of the 20,000 outstanding shares of $10 par common stock of Sharpe Corporation at $18. The amount debited to Investment in Sharpe Corporation Stock is $ 2'4. Sharpe Corporation realizes net income of $75,000 and declares and pays cash dividends of $45,000 in the first year following acquisition by Peach Co.
2. Peach Co.s share of the $75,000 of net income amounts to $
3. Peach Co.s share of the $45,000 of dividends amounts to $
4. Peach Co.s net increase in its investment in Sharpe Corporation amounts to $
5. Pull Corporation purchases 100 shares of Bill Co.s $15 par common stock at $47 a share, plus a brokerage fee of $100. The amount of the debit to record the purchase is $
6. Pull Corporation sells the shares of Bill Co. in Question 5 at $45 a share, with net proceeds of $4,400. The amount of the gain or loss from the sale is $
7. In fair value accounting, the change in the reported values of assets and liabilities will be shown in the ________________________ account.