1. ASH ACC 306 W EEK 1 DQ 1 E QUITY M ETHOD C HECK THIS A+ TUTORIAL GUIDELINE AT HTTP :// WWW. ASSIGNMENTCLOUD. COM / ACC -306- ASH / ACC -306- WEEK -1- DQ -1- EQUITY - METHOD F OR MORE CLASSES VISIT HTTP :// WWW. ASSIGNMENTCLOUD. COM P 12–13 - M ILLER P ROPERTIES - E QUITY METHOD ● LO5 LO6 O N J ANUARY 2, 2011, M ILLER P ROPERTIES PAID $19 MILLION FOR 1 MILLION SHARES OF M ARLON C OMPANY ’ S 6 MILLION OUTSTANDING COMMON SHARES. M ILLER ’ S CEO BECAME A MEMBER OF M ARLON ’ S BOARD OF DIRECTORS DURING THE FIRST QUARTER OF 2011. T HE CARRYING AMOUNT OF M ARLON ’ S NET ASSETS WAS $66 MILLION. M ILLER ESTIMATED THE FAIR VALUE OF THOSE NET AS - SETS TO BE THE SAME EXCEPT FOR A PATENT VALUED AT $24 MILLION ABOVE COST. T HE REMAINING AMORTIZATION PERIOD FOR THE PATENT IS 10 YEARS. M ARLON REPORTED EARNINGS OF $12 MILLION AND PAID DIVIDENDS OF $6 MILLION DURING 2011. O N D ECEMBER 31, 2011, M ARLON ’ S COMMON STOCK WAS TRADING ON THE NYSE AT $18.50 PER SHARE. R EQUIRED : 1. W HEN CONSIDERING WHETHER TO ACCOUNT FOR ITS INVESTMENT IN M ARLON UNDER THE EQUITY METHOD, WHAT CRITERIA SHOULD M ILLER ’ S MANAGEMENT APPLY ? 2. A SSUME M ILLER ACCOUNTS FOR ITS INVESTMENT IN M ARLON USING THE EQUITY METHOD. I GNORING INCOME TAXES, DETER - MINE THE AMOUNTS RELATED TO THE INVESTMENT TO BE REPORTED IN ITS 2011: A. I NCOME STATEMENT. B. B ALANCE SHEET. C. S TATEMENT OF CASH FLOWS. HTTP :// WWW. ASSIGNMENTCLOUD. COM / ACC -306- ASH / ACC -306- WEEK -1- DQ -1- EQUITY - METHOD HTTP :// WWW. ASSIGNMENTCLOUD. COM