I need help understanding how the answer was found for the following questions. Bloomfiled Bakers accounts for its investment in Clor Confectionary under the equity method. Bloomfield carried the Clo

I need help understanding how the answer was found for the following questions.

Bloomfiled Bakers accounts for its investment in Clor Confectionary under the equity method. Bloomfield carried the Clor investment at $150,000 and $165,000 at December 31 of 2010 and 2011, respectively. During 2011 Clor recognized $80,000 of net income and paid dividends of $30,000. Assuming the Bloomfield owned the same percentage of Clor throughout 2011, their percentage ownership must have been:

30%

On January 1, 2011, Green Corporation purchased 20% of the outstanding voting common stock of Gold Company for $300,000. The book value of the acquired shares was $275,000. The excess of cost over book value is attributable to an intangible asset on Gold’s books that was undervalued and had a remaining useful life of five years. For the year ended December 31, 2011, Gold reported net income of $125,000 and paid cash dividends of $25,000. What is the carrying value of Green’s investment in Gold at December 31, 2011?

315,000

Jack Corporation purchased a 20% interset in Jill Corporation for $1,500,000 on January 1, 2011. Jack can significantly influence Jill. On December 10, 2011, Jill declared and paid $1 million in dividends. Jill reported a net loss of $6 million for the year. What amount of loss should Jack report in its income statement for 2011 relative to its investment in Jill?

1,200,000

Nichols Enterprises has an investment in 25,000 shares of Elliott Electronics that Nichols accounts for as a security available for sale. Elliott shares are publicly traded on the New York Stock Exchange, and the Wall Street Journal quotes a price for those shares of $10/share. Nichols should carry the Elliott investment on its balance sheet at:

$250,000

Dim Corporation purchased 1,000 shares of Witt Corporation stock in 208 for $800 per share and classified the investment as securities available for sale. Witt’s market value was $400 per share on December 31, 2009, and $300 on December 31, 2010. During 2011, Dim sold all of its Witt stock at $350 per share. In its 2011 income statement, Dim would report:

A loss on the sale of investments of $450,000

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