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, for $30.8 million. Prepare the journal entries to record the
sale.
On March 31, 2021, Chow Brothers, Inc., bought 8% of KT Manufacturing’s capital stock for $52.4...
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...
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 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...
anufacturing's capital stock for $50 million. KT's E 12-15 Equity investments; fair value through net income • LO12-5 On March 31, 2021, Chow Brothers, Inc., bought 10% of KT Manufacturing's capital stock for d by Chow was net income for the year ended December 31, 2021, was $80 million. The fair value of the shares $35 million at December 31, 2021. KT did not declare or pay a dividend during 2021. Required: 1. Prepare all appropriate journal entries related to...
On January 2, 2018, Sanborn Tobacco Inc, bought 5% of Jackson Industry's capital stock for $106 million Jackson Industry's net Income for the year ended December 31, 2018, was $136 million. The fair value of the shares held by Sanborn was $130 million at December 31, 2018. During 2018, Jackson declared a dividend of $76 million. Required: 1. Prepare all appropriate journal entries related to the investment during 2018 2. Assume that Sanborn sold the stock on January 2, 2019...
1) Record the purchase of Jackson Industry capital stock for $91 million. 2) Record Sanborn Tobacco's portion of Jackson Industry's net income of $121 million. 3) Record the dividend revenue. 4) Record the fair value adjustment. 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...
On January 2, 2018, Sanborn Tobacco Inc. bought 5% of Jackson Industry's capital stock for $90 million. Jackson Industry's net income for the year ended December 31, 2018, was $120 million. The fair value of the shares held by Sanborn was $98 million at December 31 2018. During 2018, Jackson declared a dividend of $60 million Required: 1. Prepare all appropriate journal entries related to the investment during 2018. 2. Assume that Sanborn sold the stock on January 2, 2019...
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...