What is the total amount that should be reported in profit or loss relating to the securities during 2020?Single choice. P 640,000 P 150,000 P 190,000 P 340,000 How much is the gain or loss to be recognize on the sale of 50% of DEF shares? P 20,000 gain 0 P 10,000 loss P 190,000 gain
Q: K Company has the following securities in its portfolio of equity securities on December 31, 2021:…
A:
Q: Shangrila designated the Crossing shares as At Fair Value Shangrila bought shares of Crossing, Inc.…
A: Number of bonus shares issued = 5000 shares x 20% = 1000 shares
Q: On January 2, 2020, Theodora Company purchased 40,000 shares of Byzantine, Inc. stock at P100 per…
A: Purchased price of share (40,000 Share * P100) P40,00,000 Add: Brokerage fees P1,20,000 Initial…
Q: The Board of Directors of Merck Femies Incorporated at their meeting on May 19, 2020 declared a P10…
A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: Pagsanjan Company reported the following capital structure at year-end: 2020 2021 Outstanding…
A: 1. Earnings per share : = Net income - preference dividend / Average shares outstanding. =…
Q: 0,000 shares f
A: Introduction Capital Gain on Shares: It is possible to realist a capital gain on the appreciation…
Q: In 2022, Matter Company bought 10,000 shares Better Company at a cost of P200,000. On December 1,…
A: A property dividend, where a company gives shareholders property in lieu of cash. A property…
Q: The shareholders' equity of Diamond Corporation on December 31, 2021 follows: Ordinary Share Capital…
A: The calculation of Book Value per share on Preference Share and Ordinary share under two assumptions…
Q: During 2019, ABC Company issued 50,000, P100 par value convertible preference shares for P120 per…
A: Step 1 ABC Company issued 50,000, P100 par value convertible preferenceshares for P120 per share…
Q: 1. During 2020, Regis Inc. had the following activities related to its financial operations:…
A: Amount of net cash used in financing activities = payment of cash dividend + Payment for the early…
Q: Using the information below, how may Ordinary shares were issued in 2020? The shareholders' equity…
A: Ordinary share capital gets impacted only when shares are issued, therefore, to ascertain the number…
Q: 11. The following data of Slapshock Corporation as of December 31, 2019 showed the following:…
A: Original issue price per share = ( Par value + Premium Amount ) / Number of shares issued
Q: Pompey Inc. carries the following marketable equity securities on its books at December 31, 2021 and…
A: Trading securities won't be fair valued through OCI since they are held for the purpose of trading.…
Q: ABC Corp holds 1,000 shares of XYZ Corp.'s shares since 2019. The following are data available at…
A: If investment in equity stocks are designated as FVOCI (Fair value through other comprehensive…
Q: A company buys ten shares of securities at P2.000 each on December 31, 2031. The securities are…
A: When a company helds securities as investment , there may be…
Q: Splish Brothers Inc. has the following securities in its portfolio of equity securities on December…
A: The question is based on the concept of Journal Entry.
Q: net income
A: Net income refers to income of company after deducting all expenses. It is final value of profit and…
Q: 30. Shangri-la bought the shares of Crossing Inc. as follows: June 10, 2019 December 5, 2019 2,000…
A: Sale of shares on December 10,2020 =Number of shares × Sale price of share =3,000 shares × P120 per…
Q: On January 11, 2021, BERRY Company declared and distributed its trading securities as dividend. At…
A: Charge to Retained Earnings as a result of the dividend declaration = carrying value + unrealized…
Q: On July 1, 2020, ABC Corporation invested in the stocks of XYZ foreign corporation, by acquiring…
A: Capital Gain on Shares: It is possible to realise a capital gain on the appreciation of an asset or…
Q: 2 Jacob Company provided the following sharcholders' equity on December 31, 2020: Cumulative…
A: Cumulative preference shareholders are those shareholders on which dividend amount will accumulated,…
Q: Prepare the general journal entry for Cheyenne Corp. for the sale of the Thomas Corp. stock. (Credit…
A: CALCULATIONS : CASH : = (5,000 X $31) - $1,500 = $153,500 EQUITY INVESTMENT : = GIVEN IN…
Q: Paul Company presented the following information pertaining to its investments in equity securities.…
A: Note: Hi! Thank you for the question As per the honor code, We’ll answer the first question since…
Q: During 2022, Merry Co. purchased the following shares which it classified as FVPL investment:…
A: Fair Value through Profit and Loss A/c: if a financial instrument is held as FVPL then it means it…
Q: ABC Corp holds 1,000 shares of XYZ Corp.'s shares. The following are data available at Dec 1, 2020:…
A: Here discuss about the details of the gain or loss which are incurred at the time of sale of shares…
Q: Benevolent Company had the following transactions: 2020 Aug. 1Purchased 1,000 shares of Star…
A: Benevolent company's 2020 Aug. 1 - Purchased 1,000 shares of Star Company for P60,000. Investment in…
Q: 14. Paul Williams Company presented the following information pertaining to its investments in…
A: As specified in question the solution of 14 and 15 is given below. Unrealized gain or loss in the…
Q: ABC Co. ‘s shareholders’ equity on December 31,2020 are as follows: 7% preference shares P100 par…
A: Solution: Book value per share refers to the equity available to the common…
Q: Securities and Exchange Commissi ordinary share of P100 par value. shares were sold and issued at…
A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…
Q: The Gypsy Corporation has the following portfolio of investment securities (designated at fair value…
A: Unrealized Gains It is a theoretical benefit which exists on paper, coming about as a result of an…
Q: 7. Refer to the problem below and compute for the Shareholder's Equity at December 31, 2021. * The…
A: Calculation of shareholders equity. Adjustment a):- Preference retired- 4000*280= 1,120,000.…
Q: Other costs related to the sale of delinquent shares costs P 5.000. - Received bids from the…
A: Shareholder's Equity Shareholder's Equity which includes preference and ordinary share capital with…
Q: In 2019, Cassandra Company issued for P110 per share, 15,000 convertible preference shares of P100…
A: Solution: Amount should be credited to ordinary share capital on December 31, 2020 = Nos of…
Q: stock dividend when the market price of the share was P250 On December 31, 1,2020 for P6,600,000. On…
A: Per Share=Value of issue of shareOrdinary shares+Stock dividend=P 6,600,00040,000+40,000×10%=P 150
Q: 1. How much is the income recognized upon receipt of share rights? a. P0 b. P10,000 c. P20,000 d.…
A: On April 5. 2020, Paul Company purchased P50 par, 10,000 ordinary shares of George Company at P80…
Q: Outstanding stock of the Nash's Trading Post, LLC included 30000 shares of $5 par common stock and…
A: Dividend on Preference share: The dividend rate on non-cumulative preferred stock is fixed at the…
Q: The shareholders' equity of Rockets Corporation at the end of 2020 and 2019 are as follows: 2020…
A: Average issue price can be calculated by dividing the total amount of preference share i.e par value…
Q: 3. Guess Corporation purchased 50,000 ordinary shares on January 2, 2019 to be held for trading.…
A: Dividend indicates the portion of net income that a corporation decides to distribute to their…
Q: As of Dec. 31, 2020, DM Corporation has 10% Preference shares (cumulative and participating) with…
A: Fully Participating Prefered Stock : They share dividend declared with common stock on pro rata…
Q: During 2020, Korea Company bought the shares of ZZZ Company. June 1: 20,000 shares @ P100 =…
A: Definition: Dividend refers to a reward, cash or otherwise, that a company gives to its…
Q: Outstanding stock of the Marigold Corporation included 20600 shares of $5 par common stock and 10300…
A: Calculations: 2019 Preferred Dividend payable (10,300 x $10) x 7% $7,210 Dividends paid…
Q: During 2020, Nishinoya Corporation 5,000 convertible preference shares of P100 par value per share…
A: Total Market value of convertible preference shares = No. of convertible preference shares x Market…
Q: Shea Company Ltd. has issued 100,000 6%, $50 stated value, cumulative preferred shares. In 2021, no…
A: While paying off the dividend , the company would pay off dividend firstly for preference…
Q: 4. The following investment portfolio of equity securities (all acquired during 2019) accounted for…
A:
Q: Identify how much to add or deduct from the Investment in Associate account of ABC based on the…
A: No of shares in X Corp = 100,000 shares No of shares bought by ABC = 3,000 shares % of Holding in X…
Q: The shareholders' equity of Rockets Corporation at the end of 2020 and 2019 are as follows: 2020…
A: Increase in preference share capital in 2020 = preference share capital in 2020 -preference share…
Q: ABC Co. ‘s shareholders’ equity on December 31,2020 are as follows: 7% preference shares P100 par…
A: Book Value Per ordinary share Book value per share is the value of per share available to the…
Q: Question 6 On June 1, 2020, Ping Corp. purchased 10,000 of Pong’s 50,000 outstanding shares at a…
A: As per IFRS In both the FVTOCI and FVTPL approaches, initially investment is recorded at cost and…
Q: 11. The following data of Slapshock Corporation as of December 31, 2019 showed the following:…
A: The term "issued and outstanding" refers to the number of shares that a corporation has actually…
Q: 3. Mack Company reported the following outstanding share capital on December 31, 2020: -…
A: The dividend per share is calculated as total dividend divided by number of shares.
What is the total amount that should be reported in profit or loss relating to the securities during 2020?Single choice.
- P 640,000
- P 150,000
- P 190,000
- P 340,000
How much is the gain or loss to be recognize on the sale of 50% of DEF shares?
- P 20,000 gain
- 0
- P 10,000 loss
- P 190,000 gain
Step by step
Solved in 2 steps with 2 images
- On January 1, 2021, Parent Co. acquired 80% of Subsidiary In's outstanding stocks for P1,600,000 cash. Subsidiary Inc's balance sheet shows P3,000,000 identifiable assets and P1,800,000 liabilities. All assets and liabilities of Setter are fairly valued, except for an undervalued equipment. The stock acquisition resulted to a goodwill of P700,000. Assume Parent had P5,100,000 total assets prior to the said transaction. NCI is measured at fair value. How much is the total assets in the consolidated balance sheet after the stock acquisition?On January 1, 2022, Lucas Company acquired 85% of outstanding shares of Luna Corp. Theconsideration transferred includes cash payment of P2,000,000 and issuance of 50,000 shareswith a market price of P45 per share.The book value of Luna Corp.’s identifiable net assets approximate its fair value, except for thefollowing:• Merchandise inventory’s fair value is lower than the book balance by 150,000.• Equipment-A, with 2 years remaining useful life, costing P300,000 is understated byP50,000.• Land with a fair value of P500,000 is recognized in the books amounting to P350,000.The following events happened to Luna Corp.• Equipment-A was sold in June 30, 2023 for P320,000.• 60% of merchandise inventory were sold in 2022.• There is no movement as to the ordinary shares of Luna Corp during the year.The unadjusted trial balance as of December 31, 2022 were as follows:Lucas Company Luna CorpCash 2,240,000 1,800,000Trade Receivables 1,000,000 960,000Merchandise Inventory 2,320,000…On January 1, 2022, Lucas Company acquired 85% of outstanding shares of Luna Corp. Theconsideration transferred includes cash payment of P2,000,000 and issuance of 50,000 shareswith a market price of P45 per share.The book value of Luna Corp.’s identifiable net assets approximate its fair value, except for thefollowing:• Merchandise inventory’s fair value is lower than the book balance by 150,000.• Equipment-A, with 2 years remaining useful life, costing P300,000 is understated byP50,000.• Land with a fair value of P500,000 is recognized in the books amounting to P350,000.The following events happened to Luna Corp.• Equipment-A was sold in June 30, 2023 for P320,000.• 60% of merchandise inventory were sold in 2022.• There is no movement as to the ordinary shares of Luna Corp during the year.The unadjusted trial balance as of December 31, 2022 were as follows:Lucas Company Luna CorpCash 2,240,000 1,800,000Trade Receivables 1,000,000 960,000Merchandise Inventory 2,320,000…
- Anthem Co. acquired 60% of the outstanding shares of Bethel Co. on January 2, 2021. Anthem Co. acquired it at book value which is the same as its fair value at the date of acquisition. Income Statement of Anthem Co. and Bethel Co. for 2022 are as follows: Anthem Co. Bethel Co. Net Sales P875,000 P350,000 Cost of Sales 525,000 210,000 Gross Profit 350,000 140,000 Operating Expenses 105,000 52,500 Operating Income 245,000 87,500 Dividend Income 56,000 0 Net Income P301,000 P87,500 Bethel Co. made sales to Anthem Co. of P112,000 in 2021 and P168,000 in 2022. Anthem Co. reported inventory on December 31, 2021 amounting to P70,000 of which 20% comes from Bethel Co. and inventory on December 31, 2022 amounting to P84,000 of which 30% comes from Bethel Co. Anthem Co. made sales to Bethel Co. of P273,000 in 2021 and P338,000 in 2022. Bethel reported inventory coming from Anthem Co. as of December 31, 2021 and December 31,…Anthem Co. acquired 60% of the outstanding shares of Bethel Co. onJanuary 2, 2021. Anthem Co. acquired it at book value which is the sameas its fair value at the date of acquisition. Income Statement of AnthemCo. and Bethel Co. for 2022 are as follows:Anthem Co.Net Sales P875,000Cost of Sales 525,000Gross Profit 350,000Operating Expenses 105,000Operating Income 245,000Dividend Income 56,000Net Income P301,000Bethel Co. made sales to Anthem Co. of P112,000 in 2021 andP168,000 in 2022.Anthem Co. reported inventory on December 31, 2021 amounting toP70,000 of which 20% comes from Bethel Co. and inventory onDecember 31, 2022 amounting to P84,000 of which 30% comes fromBethel Co.Anthem Co. made sales to Bethel Co. of P273,000 in 2021 andP338,000 in 2022.Bethel reported inventory coming from Anthem Co. as of December31, 2021 and December 31, 2022 in the amount of P54,600 andP152,100, respectively.Anthem Co. uses 30% mark-up on cost and Bethel Co. uses 25%mark-up on cost for their selling…On January 1, 2021, PCO purchased 70% ownership of SCO which resulted to a gainon acquisition of P100,000. Net assets of SCO were fairly valued except for inventorywhich was understated by P1,500,000. A third of these inventories remained unsoldas of the end of the calendar year.The operations of the two companies for 2021 are as follows:PCO SCOSales P3,100,000 P2,600,000(COGS) (1,300,000) (1,250,000)Gross profit 1,800,000 1,350,000(OPEX) (200,000) (150,000)1,550,0003,550,0001,850,0003,250,000Other income 0 200,000(Other expenses) (120,000) 0Net income P1,480,000 P 400,000In the consolidated statement of comprehensive income for the year endedDecember 31, 2021, how much is the cost of goods sold? A. 1,550,000B. 3,550,000C. 1,850,000D. 3,250,000 based on the information above, In the consolidated statement of comprehensiveincome for the year ended December 31, 2021, how much is the consolidated netincome attributable to the controlling interest? 1,830,0001,980,0001,760,0001,860,000
- On May 31, 2021, Armstrong LTD paid $3,500,000 to acquire all of the common stock of Hall Corporation, which became a division of Armstrong. Hall reported the following balance sheet at the time of the acquisition: Current assets $ 900,000 Noncurrent assets 2,700,000 Total assets $3,600,000 Current liabilities $ 600,000 Long-term liabilities 500,000 Stockholders’ equity 2,500,000 Total liabilities and stockholders’ equity $3,600,000 It was determined at the date of the purchase that the fair value of the identifiable net assets of Hall was $3,100,000. At December 31, 2021, Hall reports the following balance sheet information: Current assets $800,000 Noncurrent assets (including goodwill recognized in purchase) 2,400,000 Current liabilities (700,000) Long-term liabilities (500,000) Net assets $2,000,000 It is…On July 31, 2020, Swifty Company paid $3,540,000 to acquire all of the common shares of Blue Spruce Incorporated, which became a division of Swifty. Blue Spruce reported the following statement of financial position at the time of the acquisition Blue Spruce Inc. Statement of Financial Position As at July 31, 2020 Current assets $944,000 Current liabilities $708.000 Non-current assets 3.186.000 Long-term liabilities 590.000 Shareholders'equity 2832.000 Total liabilities and Total assets $4.130.000 shareholders equity $4.130.000 Itwas determined at the date of the purchase that the fair value of the identifiable net assets of Blue Spruce was $3.245,000. Over the next six months of operations, the newly purchased division experienced operating losses. In addition, it now appears that it will generate substantial losses for the foresecable future. At December 31, 2020, Blue Spruce reports the following statement of financial position information: Current assets 531.000 Non-current assets…On May 31, 2021, Ivanhoe Company paid $3,640,000 to acquire all of the common stock of Oriole Corporation, which became a division of Ivanhoe. Oriole reported the following balance sheet at the time of the acquisition: Current assets $ 936,000 Current liabilities $ 624,000 Noncurrent assets 2,808,000 Long-term liabilities 520,000 Stockholder's equity 2,600,000 Total assets $3,744,000 Total liabilities and stockholder's equity $3,744,000 It was determined at the date of the purchase that the fair value of the identifiable net assets of Oriole was $3,224,000. At December 31, 2021, Oriole reports the following balance sheet information: Current assets $ 832,000 Noncurrent assets (including goodwill recognized in purchase) 2,496,000 Current liabilities (728,000 ) Long-term liabilities (520,000 ) Net assets $2,080,000 It is determined that the fair value of the Oriole division is $2,288,000. 1).…
- Intor Company acquired 20% of the ordinary shares of Intee Company on January 1, 2019. At this date, all the identifiable assets and liabilities of Intee were recorded at fair value. An analysis of the acquisition showed that P200,000 of goodwill was acquired. Intee Company recorded a profit of P1,000,000 for 2020 and paid dividend of P700,000 during the same year. The following transactions have occurred between the two entities. • In December 2020, Intee sold inventory to Intor for P1,500,000. This inventory had previously cost Intee P1,000,000 and remains unsold by Intor on December 31. 2020. • In November 2020, Intor sold inventory to Intee at a before tax profit of P300.000. Half of this was sold by Intee before December 31, 2020. • In December 2019, Intee sold inventory to Intor for P1,800,000. This inventory had cost Intee P1,200,000. At December 31. 2019, this inventory remained unsold by Intor. However, it was all sold by Intor in 2020. Ignoring income tax, Intor company…LGM Motors acquired 80% of NS Service Center outstanding shares on January 1, 2022 by paying cash. The consolidated statement of financial position showed the following balances at the date of acquisition. Consolidated Balances Amount Total Assets 15,670,000 Total Liabilities 4,575,000 Total Shareholder’s Equity ? The book value of the net assets of NS Services Center is P4,500,000. The assets of NS Service Center are fairly valued except for the following: Patent on the product that is deemed worthless, P50,000. Goodwill of P150,000. Unrecognized identifiable R&D of P75,000. The fair value of the non-controlling interest is 705,000 and the book value of LGM’s equity balance is P9,500,000. On December 31, 2022 the following information were provided by NS Services Center: Net income of 400,000 was Patents remaining useful life is 4 Pre-existing goodwill presented above was impaired with a current value of 120,000. Dividends were declared…A Co. acquired 60% of the outstanding shares of B Co. on January 2, 2021. A Co. acquired it at book value which is the same as its fair value at the date of acquisition. Income Statement of A Co. and B Co. for 2022 are as follows: A Co. B Co.Net Sales P1,093,750 P437,500Cost of Sales 656,250 262,500Gross Profit 437,500 175,000Operating Expenses 131,250 65,625Operating Income 306,250 109,375Dividend Income 70,000 0Net Income P 376,250 P109,375 B Co. made sales to A Co. of P140,000 in 2021 and P210,000 in 2022. A Co. reported inventory on December 31, 2021 amounting to P87,500 of which 20% comes from B Co. and inventory on December 31, 2022 amounting to P105,000 of which 30%…