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anufacturing's capital stock for $50 million. KT's E 12-15 Equity investments; fair value through net income...
On March 31, 2018, Chow Brothers, Inc., bought 10% of KT Manufacturing's capital stock for $50...
On March 31, 2018, Chow Brothers, Inc., bought 10% of KT Manufacturing's capital stock for $50 million. KT's net income for the year ended December 31, 2018, was $80 million. The fair value of the shares held by Chow was $35 million at December 31, 2018. KT did not declare or pay a dividend during 2018. Required: 1. Prepare all appropriate journal entries related to the investment during 2018 2. Assume that Chow sold the stock on January 20, 2019...
On March 31, 2021, Chow Brothers, Inc., bought 8% of KT Manufacturing’s capital stock for $52.4...
On March 31, 2021, Chow Brothers, Inc., bought 8% of KT Manufacturing’s capital stock for $52.4 million. KT’s net income for the year ended December 31, 2021, was $80.8 million. The fair value of the shares held by Chow was $36.6 million at December 31, 2021. KT did not declare or pay a dividend during 2021. Required: 1. Prepare all appropriate journal entries related to the investment during 2021. 2. Assume that Chow sold the stock on January 20, 2022,...
I will give thumbs up for correct answers! On March 31, 2021, Chow Brothers, Inc., bought...
I will give thumbs up for correct answers!
On March 31, 2021, Chow Brothers, Inc., bought 8% of KT Manufacturing's capital stock for $53.3 million. KT's net income for the year ended December 31, 2021, was $81.1 million. The fair value of the shares held by Chow was $37.2 million at December 31, 2021. KT did not declare or pay a dividend during 2021. Required: 1. Prepare all appropriate journal entries related to the investment during 2021. 2. Assume that...
On March 31, 2018, Chow Brothers, Inc., bought 5% of KT Manufacturing’s capital stock for $55.7...
On March 31, 2018, Chow Brothers, Inc., bought 5% of KT Manufacturing’s capital stock for $55.7 million. KT’s net income for the year ended December 31, 2018, was $81.9 million. The fair value of the shares held by Chow was $38.8 million at December 31, 2018. KT did not declare or pay a dividend during 2018. Required: 1. Prepare all appropriate journal entries related to the investment during 2018. - Record the purchase of KT Manufacturing’s capital stock for $55.7...
On March 31, 2018, Chow Brothers, Inc., bought 8% of KT Manufacturing’s capital stock for $50.3...
On March 31, 2018, Chow Brothers, Inc., bought 8% of KT Manufacturing’s capital stock for $50.3 million. KT’s net income for the year ended December 31, 2018, was $80.1 million. The fair value of the shares held by Chow was $35.2 million at December 31, 2018. KT did not declare or pay a dividend during 2018. Required: 1. Prepare all appropriate journal entries related to the investment during 2018. 2. Assume that Chow sold the stock on January 20, 2019...
Loreal-American Corporation purchased several marketable securities during 2021. At December 31, 2021, the company had the...
Loreal-American Corporation purchased several marketable securities during 2021. At December 31, 2021, the company had the investments in bonds listed below. None was held at the last reporting date, December 31, 2020, and all are considered securities available-for-sale. Unrealized Holding Gain (Loss) Cost Fair Value $ 508,000 464,000 $ 972,000 $ 391,000 508,000 $ 899,000 $(117,000) 44,000 $ (73,000) Short term: Blair, Inc. ANC Corporation Totals Long term: Drake Corporation Aaron Industries Totals $ 508,000 $ 574,000 706,000 674,000 $1,214,000...
Problem 12-7 (Algo) Various transactions related to equity investments: fair value through net income (LO12-5] The...
Problem 12-7 (Algo) Various transactions related to equity investments: fair value through net income (LO12-5] The following selected transactions relate to investment activities of Ornamental Insulation Corporation during 2021. The company buys equity securities as noncurrent investments. None of Ornamentals investments are large enough to exert significant influence on the investee. Ornamental's fiscal year ends on December 31. No investments were held by Ornamental on December 31, 2020. Mar. 31 Acquired Distribution Transformers Corporation common stock for $510,000. Sep. 1...
assets of Lavery rather than a 30% interest. P 12-11 Fair value option; equity method investments...
assets of Lavery rather than a 30% interest. P 12-11 Fair value option; equity method investments LO12-5 2, LO12-8 L [This problem is a variation of P 12-102 focusing on the fair value option.] On January 4, 2018, Runyan Bakery paid $324 million for 10 million shares of Lavery Labeling Company common stock The investment represents a 30% interest in the net assets of Lavery and gave Runyan the ability to exercise significant influence over Lavery's operations. Runyan chose the...
Problem 12-11 (Algo) Fair value option; equity method investments [LO12-5, 12-8] On January 4, 2021, Runyan...
Problem 12-11 (Algo) Fair value option; equity method investments [LO12-5, 12-8] On January 4, 2021, Runyan Bakery paid $338 million for 10 million shares of Lavery Labeling Company common stock. The investment represents a 30% interest in the net assets of Lavery and gave Runyan the ability to exercise significant influence over Lavery's operations. Runyan chose the fair value option to account for this investment. Runyan received dividends of $2.00 per share on December 15, 2021, and Lavery reported net...
JOURNAL ENTRY: 1) Record the entry to adjust to fair value on the date of sale....
JOURNAL ENTRY:
1) Record the entry to adjust to fair value on the date of
sale.
2) Record the sale of stock on January 2, 2022 for $112
million.
Required Information [The following information applies to the questions displayed below.] On January 2, 2021, Sanborn Tobacco Inc. bought 10% of Jackson Industry's capital stock for $91 million. Jackson Industry's net Income for the year ended December 31, 2021, was $121 million. The fair value of the shares held by Sanborn...
On March 31, 2018, Chow Brothers, Inc., bought 10% of KT Manufacturing's capital stock for $50 million. KT's net income for the year ended December 31, 2018, was $80 million. The fair value of the shares held by Chow was $35 million at December 31, 2018. KT did not declare or pay a dividend during 2018. Required: 1. Prepare all appropriate journal entries related to the investment during 2018 2. Assume that Chow sold the stock on January 20, 2019...
I will give thumbs up for correct answers!
On March 31, 2021, Chow Brothers, Inc., bought 8% of KT Manufacturing's capital stock for $53.3 million. KT's net income for the year ended December 31, 2021, was $81.1 million. The fair value of the shares held by Chow was $37.2 million at December 31, 2021. KT did not declare or pay a dividend during 2021. Required: 1. Prepare all appropriate journal entries related to the investment during 2021. 2. Assume that...
Loreal-American Corporation purchased several marketable securities during 2021. At December 31, 2021, the company had the investments in bonds listed below. None was held at the last reporting date, December 31, 2020, and all are considered securities available-for-sale. Unrealized Holding Gain (Loss) Cost Fair Value $ 508,000 464,000 $ 972,000 $ 391,000 508,000 $ 899,000 $(117,000) 44,000 $ (73,000) Short term: Blair, Inc. ANC Corporation Totals Long term: Drake Corporation Aaron Industries Totals $ 508,000 $ 574,000 706,000 674,000 $1,214,000...
Problem 12-7 (Algo) Various transactions related to equity investments: fair value through net income (LO12-5] The following selected transactions relate to investment activities of Ornamental Insulation Corporation during 2021. The company buys equity securities as noncurrent investments. None of Ornamentals investments are large enough to exert significant influence on the investee. Ornamental's fiscal year ends on December 31. No investments were held by Ornamental on December 31, 2020. Mar. 31 Acquired Distribution Transformers Corporation common stock for $510,000. Sep. 1...
assets of Lavery rather than a 30% interest. P 12-11 Fair value option; equity method investments LO12-5 2, LO12-8 L [This problem is a variation of P 12-102 focusing on the fair value option.] On January 4, 2018, Runyan Bakery paid $324 million for 10 million shares of Lavery Labeling Company common stock The investment represents a 30% interest in the net assets of Lavery and gave Runyan the ability to exercise significant influence over Lavery's operations. Runyan chose the...
Problem 12-11 (Algo) Fair value option; equity method investments [LO12-5, 12-8] On January 4, 2021, Runyan Bakery paid $338 million for 10 million shares of Lavery Labeling Company common stock. The investment represents a 30% interest in the net assets of Lavery and gave Runyan the ability to exercise significant influence over Lavery's operations. Runyan chose the fair value option to account for this investment. Runyan received dividends of $2.00 per share on December 15, 2021, and Lavery reported net...
JOURNAL ENTRY:
1) Record the entry to adjust to fair value on the date of
sale.
2) Record the sale of stock on January 2, 2022 for $112
million.
Required Information [The following information applies to the questions displayed below.] On January 2, 2021, Sanborn Tobacco Inc. bought 10% of Jackson Industry's capital stock for $91 million. Jackson Industry's net Income for the year ended December 31, 2021, was $121 million. The fair value of the shares held by Sanborn...
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