Homework Answers
Sales ( one fourth of investment )
= 360000/4
= 90000
Realised gain = sales value - origin purchase price
=112970 - 90000
=22970
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Question 7 On January 1, 2021, Lear Company purchased 37% of Bunker Company's common stock for...
On January 1, 2021, Lear Company purchased 37% of Bunker Company's common stock for $360,000. During...
On January 1, 2021, Lear Company purchased 37% of Bunker Company's common stock for $360,000. During 2021, Bunker Company reported a net income of $129,000 and paid dividends totaling $43,000. In 2022, Bunker Company reported a net income of $81,000 and paid dividends totaling $17,000. On December 31, 2022, Lear Company sold one-fourth of its investment in Bunker Company for $112,970 cash. Calculate the amount of the realized gain reported in Lear Company's 2022 income statement resulting from the sale...
Question 6 On January 1, 2021, Lear Company purchased 37% of Bunker Company's common stock for...
Question 6 On January 1, 2021, Lear Company purchased 37% of Bunker Company's common stock for $360,000. During 2021, Bunker Company reported a net income of $129,000 and paid dividends totaling $43,000. In 2022, Bunker Company reported a net income of $81,000 and paid dividends totaling $17,000. On December 31, 2022, Lear Company sold one-fourth of its investment in Bunker Company for $112,970 cash. Calculate the amount of investment revenue related to the investment in Bunker Company reported on Lear...
On January 1, 2021, Lear Company purchased 37% of Bunker Company's common stock for $360,000. During...
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I'm not sure with my answer (I'm not that familiar with the equity method) On January...
I'm not sure with my answer (I'm not that familiar
with the equity method)
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37 On January 2, 2021, Barley Corp. purchased 40% of the voting common stock of Wheat...
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Question 15 Vaughn Manufacturing had 2390000 shares of common stock outstanding on January 1 and December...
Question 15 Vaughn Manufacturing had 2390000 shares of common stock outstanding on January 1 and December 31, 2021. In connection with the acquisition of a subsidiary company in June 2020, Vaughn is required to issue 107000 additional shares of its common stock on July 1, 2022, to the former owners of the subsidiary. Vaughn paid $200000 in preferred stock dividends in 2021, and reported net income of $3380000 for the year. Vaughn's diluted earnings per share for 2021 should be...
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On January 1, 2021, M Company granted 96,000 stock options to certain executives. The options are exercisable no sooner than December 31, 2023, and expire on January 1, 2027. Each option can be exercised to acquire one share of $1 par common stock for $9. An option-pricing model estimates the fair value of the options to be $3 on the date of grant. What amount should M recognize as compensation expense for 2021? ---- On January 1, 2021, M Company...
Question 6 On January 1, 2021, Lear Company purchased 37% of Bunker Company's common stock for $360,000. During 2021, Bunker Company reported a net income of $129,000 and paid dividends totaling $43,000. In 2022, Bunker Company reported a net income of $81,000 and paid dividends totaling $17,000. On December 31, 2022, Lear Company sold one-fourth of its investment in Bunker Company for $112,970 cash. Calculate the amount of investment revenue related to the investment in Bunker Company reported on Lear...
I'm not sure with my answer (I'm not that familiar
with the equity method)
On January 1, 2021, Lear Company purchased 37% of Bunker Company's common stock for $360,000. During 2021, Bunker Company reported a net income of $129,000 and paid dividends totaling $43,000. In 2022, Bunker Company reported a net income of $81,000 and paid dividends! totaling $17,000. On December 31, 2022, Lear Company sold one-fourth of its investment in Bunker Company for $112,970 cash. Calculate the amount of...
37 On January 2, 2021, Barley Corp. purchased 40% of the voting common stock of Wheat Co., paying $3,000,000. Barley properly accounts for this investment using the equity method. At the time of the investment, Wheat's total stockholders' equity was $5,000,000. Barley gathered the following information about Wheat's assets and liabilities whose book values and fair values differed: Book Value Fair Value Buildings (20-year life) $1,000,000 $1,800,000 Equipment (5-year life) 1,500,000 2,000,000 Franchises (10-year life) 0 700,000 Any excess of...
Question 15 Vaughn Manufacturing had 2390000 shares of common stock outstanding on January 1 and December 31, 2021. In connection with the acquisition of a subsidiary company in June 2020, Vaughn is required to issue 107000 additional shares of its common stock on July 1, 2022, to the former owners of the subsidiary. Vaughn paid $200000 in preferred stock dividends in 2021, and reported net income of $3380000 for the year. Vaughn's diluted earnings per share for 2021 should be...
On January 1, 2021. Nana Company paid $100,000 for 6200 shares of Papa Company common stock The ownership in Papa Company is 10%. Nana Company does not have significant influence over Papa Company Papa reported net income of $60,000 for the year ended December 31, 2021. The fair value of the Papa stock on that date was 563 per share. What amount will be reported in the balance sheet of Nana Company for the investment in Papa at December 31...
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