At the 20X5 annual meeting for Jasmines shareholders, Curry nominated seven directors for Jasmines 12-person board of directors. After some negotiation, five of Currys nominees were accepted onto the board. During fiscal year 20X6, the following occurred:
1. Curry shifted a substantial amount of business to Jasmine. Jasmine became the major supplier of one of Currys raw materials and had sales totalling $7,000,000 to Curry. Of that total, $1,200,000 was in Currys raw materials inventory at year-end. The other $5,800,000 had been utilized in finished goods, of which 40% was still in inventory on March 31, 20X6.
2. Curry began selling some products to Cinnamon Corp., a wholly owned subsidiary of Jasmine. Fiscal 20X6 sales totalled $2,500,000, all within the last two months of the year. At year-end, 60% of the sales were still in Cinnamons inventory.
3. Operating results for fiscal 20X6 were reported as follows:
Required
Using the information above and in P 69 , prepare a schedule(s) in which you:
1. Compute the amount of investment income that Curry should recognize in fiscal 20X6 from its investment in Jasmine.
2. Compute the balance of Currys investment account for its investment in Jasmine at March 31, 20X6.
Enjoy 24/7 customer support for any queries or concerns you have.
Phone: +1 213 3772458
Email: support@gradeessays.com