How would the answer to '4' above change if: a) the ACB of shares for Mr. Cauzone was $1,000, rather than $7,000? b) the CSOH balance was $nil, not $5,000?
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- . In June 2022, Wild Company had excess cash that would not be needed until March 1, 2022. Management decided to invest the money in a short-term investment in FVTPL financial assets. Wild owned no investment financial assets before June 2022. The following transactions relate to these investments: June 20 Purchase 10,000 shares of West Corporation stock. The price paid was P104,500. September 2 Received a cash dividend of P1.20 per share on West stock. October 5 Sold 4,000 shares of West stock at P10.00 per share. Paid a selling commission of P400. December 31 The market price of West stock was P11.00. Required: Compute the realized gain or loss on October 5, 2022. Compute the amount of unrealized gain or loss that will be reported to income statement for 2022. Assume that the fair value of the investment on December 31, 2023 is P14/share. Compute the amount of unrealized gain or loss that will be reported to income statement for 2023.Partners Ong, Rodriguez, Pamittan and Reyes who share profits andlosses at 30%, 30%, 20% and 20%, respectively, decided to liquidate. Allpartnership assets are to be converted into cash. Before liquidation, thecondensed statement of financial position follows:Cash P100, 000 Liabilities P750, 000Other Assets 1, 800, 000 Rodriguez, Loan 60, 000Reyes, Loan 50, 000Ong, Capital 420, 000Rodriguez, Capital 315, 000Pamittan, Capital 205, 000Reyes, Capital 100, 000Total P1, 900,000P1, 900,000The non-cash assets realized P800, 000, resulting to a loss of P1, 000,000. All the partners are solvent, and can contribute any additional cash tocover any deficiency. In the process of liquidation, deficiencies will occur andwill require additional investment as follows:a. Pamittan at P7, 500b. Reyes at P50, 000c. Reyes and Pamittan for P50, 000 and P7, 500, respectivelyd. Nonemcdonalds. is shutting down business and liquidating. The balances below will be used for the liquidation. john and brad share profits and losses equally. Cash $3,000 Notes Payable $7,500 vehicle 30,000 Less: Accumulated Depreciation 15,000 Bert, Capital 9,000 Ernie, Capital 1,500 Total Assets $18,000 Total Liabilities and Partner's equity $18,000 Sesame Street Co. Balance Sheet December 31, 2020 Assets Liabilities Partners' Equity The vehicle has been sold for $10,500 cash and neither partner has sufficient assets to pay any capital deficits. REQUIRED: Prepare the journal entries for the sale of the vehicle and the distribution of the cash to the proper parties on January 1, 2021 below.
- ABC Co. is undergoing liquidation. The following are the account balances after all the non-cash assets were sold: 50,000 Liabilities A, Capital (30%) B, Capital (30%) C, Capital (40%) Cash 120,000 90,000 (60,000) (100,000) The personal assets and liabilities of the partners are as follows: Personal assets 80,000 100,000 192,000 Personal liabilities 90,000 61,000 80,000 A B C wants to make an additional contribution of only P70,000, which A is refuting. If the doctrine of marshaling of assets is followed, how much of A's P90,000 equity would appear to be recoverable? a. 90,000 b. 79,000 c. 81,000 d. 0Christopher bought 2,000 shares of a stock at P140.00 a share. A year later, he sold the stocks at P148.50 a share. How much money did he make on the sale excluding costs of buying and selling? Select one: O a. P280,000.00 O b. P297,000.00 c. P8,000.00 d. No answer e. P17,000.0010. STU Company provided the following information for the current year: Purchased a building for P1,200,000. Signed a mortgage with the seller for P800,000 and paid cash for the remainder. Sold a land with cost of P1,500,000 at a loss of P275,000. Purchased a patent for P1,000,000. Issued ordinary shares worth P650,000 and paid cash for the balance. Borrowed P550,000 under a long-term loan agreement. Used the cash from the loan proceeds as follows: P150,000 for purchase of additional inventory, P300,000 to pay cash dividend, and P100,000 to increase the cash balance. What amount should be reported as net cash provided by/used from investing activities in the statement of cash flows? (Indicate if provided or used)
- Blossom Political Consultants management has decided to discontinue all of the firm's business operations. The firm has total debt of $5.90 million, and the liquidation value of its assets is $11.00 million. If the book value of the firm's equity is $5.50 million, then what will be the amount of the liquidating dividend when the firm liquidates all of its assets? (Round answer to 2 decimal places, e.g. 15.25.)The partners in Crawford Company decide to liquidate the firm when the balance sheet shows the following. Crawford Company Balance Sheet May 31, 2020Assets Liabilities and Owners' EquityCash $ 27,500 Notes payable $ 13,500Accounts receivable 25,000 Accounts payable 27,000Allowance for doubtful accounts (1,000) Salaries and wages payable 4,000Inventory 34,500 A. Jamison, capital 30,000Equipment 21,000 S. Moyer,…Pop Ltd and Bubble Ltd are small family-owned companies engaged in sustainably farmed vegetables. The owners of Pop Ltd are doing very well, while the owners of Bubble Ltd want to retire. On 1 July 2024, Pop Ltd took over the operations of Bubble Ltd, which then liquidated. The statement of financial position of Bubble Ltd as at 30 June 2024 was as follows: $ Cash 2 000 Accounts Receivable 15 000 Land 90 000 Building 125 000 Accumulated depreciation - Building (95 000) Equipment 114 000 Accumulated depreciation – Equipment (36 000) Vehicles 100 000 Accumulated depreciation - Vehicles (32 000) Total Assets $283 000 Accounts payable 23 500 Bank loan 107 500 Share Capital ($2 ordinary shares) 120 000 Retained earnings 32 000 Total Liabilities & Equity $283 000 Pop Ltd agreed to acquire all of the assets, except cash and vehicles, of Bubble Ltd and assume all of the liabilities…
- On January 1, 20x2, Gold Company purchased a computer with an expected economic life of five years. On January 1, 20x4, Gold sold the computer to TLK Corporation and recorded the following entry: Cash 39,000 Accumulated Depreciation 16,000 Computer Equipment 40,000 Gain on sale of equipment 15,000 TLK Corporation holds 60 percent of Gold’s voting shares. Gold reported net income of P45,000, and TLK reported income from its own operations of P85,000 for 20x4. There is no change in the estimated life of the equipment as a result of the inter-corporate transfer. In the preparation of the 20x4 consolidated income statement, depreciation expense will be: A. Debited for 5,000 in eliminating entriesB. Credited for 5,000 in eliminating entriesC. Debited for 13,000 in eliminating entriesD. Credited for 13,000 in eliminating entriesOn January 1, 20x2, Gold Company purchased a computer with an expected economic life of five years. On January 1, 20x4, Gold sold the computer to TLK Corporation and recorded the following entry: Cash 39,000 Accumulated Depreciation 16,000 Computer Equipment 40,000 Gain on sale of equipment 15,000 TLK Corporation holds 60 percent of Gold’s voting shares. Gold reported net income of P45,000, and TLK reported income from its own operations of P85,000 for 20x4. There is no change in the estimated life of the equipment as a result of the inter-corporate transfer. The income assigned to the non-controlling interest in the 20x4 consolidated income statement will amount to: A. 12,000 C. 18,000B. 14,000 D. 52,000Fun Runners (Pty) Ltd incurred the following transactions during April 2022:1. Mr. Nike increased his capital contribution with R50 000.2. Stock to the value of R34 000 was purchased using the perpetual inventory system.3. Sell goods of R14 500 to Mrs. Fast on credit. The cost of the goods amounts to R10 000.4. Settle the telephone account, received last week, of R1 400.5. New takkies of R2 300 were sold to the primary school at cost. The school does not have a credit facility with Fun Runners (Pty) Ltd.6. Mr. Nike purchased a new delivery vehicle of R150 000 through bank financing with Pacing Bank Required:Record the transactions incurred by Fun Runners (Pty) Ltd, outlining the basic accounting equation and the general ledger accounts affected. Detailed in the following format:a + to indicate an increase; and – for a decrease on the accounts No Assets Equity Liability Account debited Account Credited