Date | Accounts Title | Dr | Cr |
Jan 1 2020 | Investment in Tahiti (FV-NI) | $668,000 | |
Cash | $668,000 | ||
(being investment made using FV-NI method model recorded) | |||
July 31 2020 | Cash | 45000 | |
Dividend Revenue (.45*100000) | 45000 | ||
(being dividend received) | |||
Dec 31 2020 | Fair value adjustment (724000-668000) | 56000 | |
Unrealized holding gain/losses-Net Income | 56000 | ||
If fair value adjustment account title is not present than use | |||
Investment in Tahiti (FV-NI) | |||
If any doubt please comment |
Bonita Inc acquired 100,000 common shares, which is 25% of the outstanding common shares, of Tahiti...
Swifty Inc acquired 100,000 common shares, which is 25% of the outstanding common shares of Tahiti Ltd. on January 1, 2020 for $552,000. At the time of purchase, Tahiti Ltd. depreciable assets were undervalued by $45,000. The depreciable assets had a remaining useful life of 5 years with no salvage value. Tahiti Ltd. declared and paid a cash dividend of $0.30 per share on July 31, 2020. Tahiti Ltd. reported $1.2 million as net income on December 31, 2020 for...
Pina Inc acquired 125,000 common shares, which is 25% of the outstanding common shares of Tahiti Ltd. on January 1, 2020 for $793,750. At the time of purchase, Tahiti Ltd. depreciable assets were undervalued by $38,080. The depreciable assets had a remaining useful life of 5 years with no salvage value. Tahiti Ltd. declared and paid a cash dividend of $0.40 per share on July 31, 2020. Tahiti Ltd. reported $1.1 million as net income on December 31, 2020 for...
Vaughn Inc acquired 125,000 common shares, which is 25% of the outstanding common shares, of Tahiti Ltd. on January 1, 2020 for $806,250. At the time of purchase, Tahiti Ltd. depreciable assets were undervalued by $42,840. The depreciable assets had a remaining useful life of 5 years with no salvage value. Tahiti Ltd. declared and paid a cash dividend of $0.55 per share on July 31, 2020. Tahiti Ltd. reported $1.2 million as net income on December 31, 2020 for...
Not sure if my answers are correct this far. This is what I was given. I started to fill it out, but realized I really did not know what I was doing. Disregard the information put into the journal entries as they were just my attempts to figure out what I needed to do. Marigold Inc acquired 121,000 common shares, which is 25% of the outstanding common shares of Tahiti Ltd, on January 1, 2020 for $719,950. At the time...
Question 6 Bramble Inc. acquired 20% of the outstanding common shares of Gregson Inc. on December 31, 2019. The purchase price was $1,000,000 for 50,000 shares, and is equal to 20% of Gregson's carrying amount. Gregson declared and paid a $0.85 per share cash dividend on June 15 and again on December 15, 2020. Gregson reported net income of $545,000 for 2020. The fair value of Gregson's shares was $25 per share at December 31, 2020. Bramble is a public...
Blue Inc. acquired 20% of the outstanding common stock of Theresa Kulikowski Inc. on December 31, 2020. The purchase price was $1,111,200 for 46,300 shares. Kulikowski Inc. declared and paid an $0.80 per share cash dividend on June 30 and on December 31, 2021. Kulikowski reported net income of $788,000 for 2021. The fair value of Kulikowski’s stock was $27 per share at December 31, 2021. Assume that the security is a trading security. Prepare the journal entries for Blue...
Oriole Inc. acquired 20% of the outstanding common stock of Theresa Kulikowski Inc. on December 31, 2020. The purchase price was $1,031,800 for 46,900 shares. Kulikowski Inc. declared and paid an $0.80 per share cash dividend on June 30 and on December 31, 2021. Kulikowski reported net income of $714,000 for 2021. The fair value of Kulikowski's stock was $25 per share at December 31, 2021. Assume that the security is a trading security. Prepare the journal entries for Oriole...
Teal Inc. acquired 20% of the outstanding common stock of Theresa Kulikowski Inc. on December 31, 2020. The purchase price was $998,800 for 45,400 shares. Kulikowski Inc, declared and paid an $0.80 per share cash dividend on June 30 and on December 31, 2021. Kulikowski reported net income of $708,000 for 2021. The fair value of Kulikowski's stock was $25 per share at December 31, 2021. Assume that the security is a trading security. Prepare the journal entries for Teal...
Grouper Inc. acquired 20% of the outstanding common stock of Theresa Kulikowski Inc. on December 31, 2020. The purchase price was $1,310,000 for 52,400 shares. Kulikowski Inc. declared and paid an $0.85 per share cash dividend on June 30 and on December 31, 2021. Kulikowski reported net income of $701,000 for 2021. The fair value of Kulikowski's stock was $28 per share at December 31, 2021. Assume that the security is a trading security. Prepare the journal entries for Grouper...
Marin Inc. acquired 20% of the outstanding common stock of Theresa Kulikowski Inc. on December 31, 2020. The purchase price was $1,053,400 for 45,800 shares. Kulikowski Inc. declared and paid an $0.80 per share cash dividend on June 30 and on December 31, 2021. Kulikowski reported net income of $742,000 for 2021. The fair value of Kulikowski's stock was $26 per share at December 31, 2021. Assume that the security is a trading security Prepare the journal entries for Marin...