Young Co. acquired a 60% interest in Tomlin Corp. on December 31, 2003 for $630,000. During 2004, Tomlin had net income of $400,000 and paid cash dividends of $100,000. At December 31, 2004, the balance in the investment account should be
Q: Ruth Ltd has a 30% investment in Abraham Ltd, which it had acquired four years ago on 1 July 2008.…
A: Journal entry: It is the first step of recording transactions of a company. Before this, no other…
Q: On January 1, 2027, Kasson Company acquired 40% of IJK Company's common stock for $183,000. Kasson…
A: IJK, is a public company which has its share available for retail investing. Therefore Kasson…
Q: In 2010, Cinnamon’s net profi t margin would be highest if:A . it is deemed to have control of…
A: Net margin: This ratio gauges the operating profitability by quantifying the amount of income earned…
Q: On July 1, 2016, Killearn Company acquired 120,000 of the outstanding shares of Shaun Company for…
A: Equity income to be recognized in each year are as follows: Equity income as on 2016…
Q: On July 1, 2023, Jerry Corporation acquired 25% of the shares of Von, Inc. for P1,000,000. At that…
A: Note: Since you have posted a question with multiple sub-parts, we will solve first three subparts…
Q: How much is the total cash outflows from investing activities?
A: Total cash outflows from investing activities -15200000 (Option A)
Q: Grat Company acquired 30% of Suth Company’s voting share capital for P2,000,000 on January 1, 2017.…
A: The question is based on the concept of Financial Accounting.
Q: On January 2, 2022, Promenade Company purchased 25% of Twilight Company’s ordinary shares; no…
A: Solution: Promenade Company purchased 25% of Twilight Company’s ordinary shares. It means Promenade…
Q: A Corporation purchased a 70% interest in B Company on January 1, 2013 for P140,000, when B’s…
A: B total income = P55000 A’ s share = 70% x P55000 = P38500
Q: On January 2, 2009. DR. STRANGE CORP. acquired all the outstanding common stock of ATTY. WEIRD INC.…
A: Note: Since you have asked multiple question, we will solve the first question for you. If you want…
Q: a. What net income would Ravine Corporation have reported for each of the years, assuming Ravine…
A: Net income is the income earned by an entity after paying tax and deducting all its expenses from…
Q: On January 2, 20x1, Paul Corp. acquired 20% ownership interest in Simon Corp. for P1,350,000 and the…
A: Goodwill in Consolidation To Calculate the goodwill in the consolidation procedures first to taken…
Q: On January 1, 2016, Cameron Inc. bought 20% of the outstanding common stock of Lake Construction…
A: 1.Journal entries:
Q: On January 2, 20x1, Paul Corp. acquired 20% ownership interest in Simon Corp. for P1,350,000 and the…
A: Goodwill in Consolidation In the consolidation process the calculation of goodwill is the total…
Q: At the beginning of current year, Small company purchased 25% of Big Company. No "excess" resulted…
A: When one entity hold 20% or more of the share of the another entity then second mentioned entity…
Q: On July 1, 2016, Killearn Company acquired 80,000 of the outstanding shares of Shaun Company for $12…
A: Formulas for the above table:
Q: Giant Inc. acquires 10% of Small Corporation on January 1, 2010, for $90,000 when the book value of…
A: Part 1. Allocation of the consideration transferred in relation to the acquisition made on January…
Q: Oriole Company owns 40% interest in the stock of Sandhill Corporation. During the year, Sandhill…
A: Consolidated net income: Net income calculated at the end of a particular period by the parent…
Q: On May 31, 2011, Armstrong Company paid P3,500,000 to acquire all of the common stock of Hall…
A:
Q: HIJ acquired all shares and half of the loan stock in KLM whose net assets were revalued by £120,000…
A: Particulars Amount £ Net assets 460000 Less : Investment In KLM X Goodwill 24000
Q: Cole Company owns 40% of Barnwell Inc. During the current year, Barnwell reported net income of…
A: When a company have the investment in another company, share in net income earned is added to the…
Q: Kim Company bought 30% of the shares of Phelps, Inc., at the start of 2016. Kim paid $10 million for…
A:
Q: On Dec. 4, 20x1, Brown Co. acquired 6,000 shares of Venice, Inc. for $50,000. Brown incurred…
A: Answer: On Dec. 31, 20x1, Gain or Loss would be: Purchase Price of 6,000 shares = $50,000 Add:…
Q: On January 1, 2008, Pedestal Company purchased 80% of the outstanding shares of Starlet
A: Working :- Net income of Starlet Co for 2008 : P 100,000…
Q: On January 1, 2010, Peter Company purchased 80% of the common stock of Pan Company for P316,000. On…
A: You have posted multiple questions. so only the first three interlink parts of the first questions…
Q: On July 1, 2016, Miller Company purchased 25% of Wall Company’s outstanding ordinary shares and no…
A: Answer- Particulars Amount Investment balance as at December 31, 2016 1900000…
Q: SD acquired the net assets of both GM and SR. Paying cash in the amount of P185,000 and by issuing…
A: Solution Calculation of purchase consideration paid by SD- Particulars To GM To SR Total Cash…
Q: what amount should Noah report as investment in Sabina?
A: IAS 28 specifies an investor is said to have significant influence over the investee if the investor…
Q: 6. In January 2002, Henry Corporation acquired 20 percent of the outstanding ordinary shares of…
A: When the asset is brought or purchased, the worth at that time is called carrying value of asset.
Q: On January 1, 2002, Capitech Corporation acquired Logirun, Inc. as a long-term investment for…
A: The investment made in an associate company is recorded by the investor in the books using the…
Q: Power Corporation purchased a 70% interest in Star Company on January 1, 2013 for P140,000, when…
A: Purchase price of 70% interest in Star Company on January 1, 2013 P1,40,000 Fair value of Company…
Q: Santo, Inc. acquired 30% of Nino Corp.'s voting stock on January 1, 2008 for P360,000. During 2008,…
A: Formula: Gain = Sale price - Purchase price
Q: At the beginning of the year, the Sean Brewery purchased a 25 percent ownership interest in Mark…
A: Book value refers to the value of an asset based on the balance sheet account balance of an…
Q: On December 31, 2008, Mercury Corporation acquired 100% ownership of Saturn Corporation. On that…
A: At the time of acquisition of business of another company, sometimes amount paid is more than the…
Q: On January 1, 20X1, Pinto Company purchased an 80% interest in Sands Inc. for $1,000,000. The equity…
A: Income distribution schedule for non controlling Interest: Calculation of net income = 300000 +…
Q: On January 1, Ivanhoe Corporation purchased a 25% equity in Helbert Corporation for $152,000. At…
A: Investment in Helbert, December 31 = Stock Investments cost + Share of net income - Dividends…
Q: On 1s January 2020, Khairul Bhd acquired 20,000 shares in Amin Bhd for RM 80,000. This gave Khairul…
A: 20000 shares for RM80000 on 01.01.2020
Q: Grat Company acquired 30% of Suth Company's voting share capital for P2,000,000 on January 1, 2017.…
A: In order to utilize the idle funds, the business entity invests them, so as to increase the value of…
Q: Grat Company acquired 30% of Suth Company’s voting share capital for P2,000,000 on January 1, 2017.…
A: The question is based on the concept of Financial Accounting.
Q: 6. In January 2002, Henry Corporation acquired 20 percent of the outstanding ordinary shares of…
A: The question is related to Accounting for Associates. Required What is the proper Carrying Amount…
Q: Grat Company acquired 30% of Suth Company's voting share capital for P2,000,000 on January 1, 2017.…
A: The business entity invests their surplus funds so as to earn the return in the form of dividends or…
Q: Scott Company purchased 30% of the ownership of Earnest Enterprises on January 1, 20X2, at…
A: As we know that if any company acquire shares of another company but not gettting full control over…
Q: On January 1, 20x1, AAA Co. acquired 30% ownership interest in BBB, Inc. for ₱200,000. Because the…
A: Working note: Computation of non-controlling interest : Non-controlling interest=Fair value of net…
Q: On January 2, 2022, Promenade Company purchased 25% of Twilight Company’s ordinary shares; no…
A: Under equity method, investment made in an associate is initially carried at cost. At the end of the…
Q: On January 1, 2011, ABC Co. purchased 20,000 shares of the 100,000 total outstanding shares of P Inc…
A: Thanks for the Question. Bartleby's Guideline “Since you have posted a question with multiple…
Q: On January 1, 2018, Cameron Inc. bought 20% of the outstanding common stock of Lake Construction…
A: 1.Journal entries--year 2018
Q: How much is the investment income to be reported at the end of the current year? At the beginning of…
A: Investment in other companies for the sake of ownership or to received return in form of interest…
2. Young Co. acquired a 60% interest in Tomlin Corp. on December 31, 2003 for $630,000. During 2004, Tomlin had net income of $400,000 and paid cash dividends of $100,000. At December 31, 2004, the balance in the investment account should be
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- The following information relates to Crip Crippy Investment of HIJ Corporation. (1). Purchase investment for $1,000,000 on January 1, 2009 (2) HIJ Corporation had earnings of $600,00 at December 31, 2009 and declared dividends of $400,000. (3) The dividends were paid on January 2, 2010. (4) On July 1, 2010 Crip Crippy sold fifty percent of its interest for $ 400,000 (5) At June 30, 2010, HIJ had earnings of $600,000 for the year and paid dividends of $200,000 for shares outstanding as at November 30, 2010. Requiement: Using the cost and equity method, record all entries from January 1, 2009 to December 31, 2010 using the following scenarios (a) Crip Crippy purchased 40% of HIJ Corporation (b) Crip Crippy purchased 18% of HIJ CorporationJameson Company acquired 90% interest in Southwest Company on December 31, 20x4 for P320,000. During 20x5 Southwest had a net income of P22,000 and paid a cash dividend of P7,000. the cost method is applied that means it would give a debit balance in the Investment in Southwest Company account at the end of 20x5 of:Z Corporation has the following transactions relating to its investment during 2020: Jan 5 Acquired 16,000 shares of Y company for P1,500,000 paying an additional P10,000 for brokerage and P5,000 for commission. Feb 14 Received dividends from Y company declared January 10,2020 to the stockholders of records January 31,2020, P16,000. Required:prepare all the necessary entries assuming the investment is 1. Financial asset at Fair Value through profit and loss 2. Financial asset at Fair Value through other comprehensive income
- The related data of Estonia Company: On March 2, 2021, Aruba Inc. declared a cash dividend of P750,000, on which Estonia Company had an 18% ownership. The date of record is March 31, 2021, and the date of payment is April 30, 2021. On May 30, 2021, Estonia Company received a property dividend with a carrying amount of P70,000. The fair value of the property on that date is P80,000 and the fair value on June 30, 2021, which is the date of payment is P89,500. On July 15, 2021, Australia Company declared a liquidating dividend of P500,000, of which Estonia had a 15% interest. How much is the dividend income reported in the Income Statement in 2021?S16-9 On January 6, 2023, Ling Corp. paid $5,000,000 for its 40 percent investment in True World Inc. Assume that on December 31 that same year, True World earned net income of $1,800,000 and paid cash dividends of $800,000. What method should Ling Corp. use to account for the investment in True World Inc.? Give your reason. Ignore any brokerage commission expenses. Post to the Investment in True World Inc. Common Shares T- account. What is its balance after all the transactions are posted? Journalize these three transactions on the books of Ling Corp. Include an explanation for each entry.On January 1, 2020, Hannah Company purchased 20% of Montana Company fro P3,000,000. This investment did not give Hannah the ability to exercise significant influence over Montana Company. During 2020, Montana Company reported net income of P3,500,000 and paid cash dividends of P4,000,000. What is the carrying amount of the investment in Montana Company on December 31, 2020?
- On January 1, 2002, Capitech Corporation acquired Logirun, Inc. as a long-term investment for ₱250,000 (a 30 percent ordinary share interest in Logirun). On that date, Logirun had net assets with a book value and fair value of ₱800,000. During 2002, Logirun reported profit of ₱90,000 and declared and paid cash dividends of ₱20,000. What is the maximum amount of income that Capitech should report from this investment for 2002? 6,000 26,750 21,000 27,000On-Ju Company acquired 90% interest in Southwest Company on December 31, 20x4 for P320,000. During 20x5 Southwest had a net income of P22,000 and paid a cash dividend of P7,000. Applying the cost method would give a debit balance in the Investment in Southwest Company account at the end of 20x5 of: P335,000 P333,500 P313,700 P320,0003) On January 1, 2009, Perelli Company purchased 90,000 of the 100,000 outstanding shares of common stock of Singer Company as a long term investment. The purchase price of OMR 4,972,000 was paid in cash. At the purchase date the balance sheet of Singer company included the following: Particulars OMR 2,926,550 3,894,530 759,690 Current assets Long term assets Other assets Current Liabilities 1,557,542 Common Stock OMR 20 Par value 2,000,000 Other Contributed Capital 1,891,400 Retained earnings 1,621,000 Additional data on Singer Company for the four years following the purchase are: 2009 2010 Net Income (Loss) 2011 2012 1,997,800 476,000-179,600-323,800 Cash dividends paid, 12/30 500,000 500,000 500,000 500,000 Required: Prepare Journal entries under each of the following methods to record the purchase and all investment-related subsequent events on the books of Perelli Company for the four years, assuming that any excess of purchase price over equity acquired was attributable solely…
- On January 1, 2021, X Inc. purchased 25% of the voting shares of Y Inc. However, due to a system crash, the initial amount of consideration paid for this 25% has been lost. X uses the equity method. X has significant influence over Y. Calculate the Value of the initial purchase X Inc. paid for its 25% ownership (i.e. January 1, 2021), given the following information that you were able to find: Value of the Investment account in Y Inc. at the end of 2023 was $97,000 Y's net income and declared dividends for the following three years are as follows: Net Income (loss) Dividends 2021 $50,000 $20,000 2022 $70,000 $80,000 2023 $30,000 $60,0006. On January 1, 2020, PQR Company purchased 40,000 shares of Frank, Inc. at P100 per share. The investment is measured at fair value through other comprehensive income. Brokerage fees amounted to P120,000 were also paid by PQR. A P5 dividend per share was declared by Frank, Inc. on December 15, 2019, to be paid on March 31, 2020 to shareholders of record on January 31, 2020. What is the initial measurement of the investment in Frank, Inc.?How much is the investment income to be reported at the end of the current year? At the beginning of current year, Courage Company acquired 25% of the outstanding shares of an investee at a total cost of P8,400, 000. At the time, the carrying amount of the net assets of Courage Company totaled P28, 800, 000. The investee owned equipment with 5-year remaining life and with a fair value P2, 400, 000 more than carrying amount. The investee owned land with a fair value of Pl, 200, 000 more than carrying amount. During the current year, the investee sold the land. At year-end, the investee reported net income of P6, 000, 000 declared and paid a cash dividend of P3, 600, 000 to shareholders at year-end. The fair value of the investment at year-end is P9, 000, 000. Q1. How much is the investment income to be reported at the end of the current year? Q2. How much is the carrying amount of the investment at year- end? Q3. How much is the implied goodwill from acquisition? Q4. What is the entry…