Homework Answers
| Percentage of ownership | 32% | =96000/300000 |
| Matsui Co. exercises significant influence over yankee Inc. and should be accounted using Equity method |
| Amount paid for Investment | 2688000 | |
| Add: Share of net income | 96000 | =300000*32% |
| Less: Dividends received | -28800 | =90000*32% |
| Investment in Yankee in 2018 balance sheet | 2755200 |
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Assume that, on January 1, 2018, Matsui Co. paid $2,688,000 for its investment in 96,000 shares...
5. Assume that, on January 1, 2018, Matsui Co. paid $1,200,000 for its investment in 60,000...
5. Assume that, on January 1, 2018, Matsui Co. paid $1,200,000 for its investment in 60,000 shares of Yankee Inc. Further, assume that Yankee has 200,000 total shares of stock issued. The book value and fair value of Yankee's identifiable net assets were both $4,000,000 at January 1, 2018. The following information pertains to Yankee during 2018: S 200,000 S 60,000 $ Net Income Dividends declared and paid Market price of common stock on 12/31/2018 22 /share What amount would...
Assume that, on January 1, 2021, Matsui Co. paid $1,029,600 for its investment in 46800 shares...
Assume that, on January 1, 2021, Matsui Co. paid $1,029,600 for its investment in 46800 shares of Yankee Inc. Further, assume that Yankee has 180000 total shares of stock issued. The book value and fair value of Yankee’s certificate net assets were both $360000 at January 1,2021. The following information pertains to Yankee during 2021? Net income $180000 Dividends declared and paid $54000 Market price of common stock on 12/31/2021 $ 24/share What amount would Matsui in its year-end 2021...
points Save Answe Assume that on January 1, 2021. Matsul Co. paid $1.296,000 for its investment...
points Save Answe Assume that on January 1, 2021. Matsul Co. paid $1.296,000 for its investment in 48,000 shares of Yankee Inc. Further, assume that Yankee has 240.000 total shares of stock Issued. The book value and fair value of Yankee's identifiable net assets were both $480,000 at January 1 2021. The following information pertains to Yankee during 2021 Net Income 240 000 Dividends declared and paid $ 72,000 Market price of common stock on 12/31/2021 29 share What amount...
Assume that, on January 1, 2021, Sosa Enterprises paid $2,060,000 for its investment in 30,000 shares...
Assume that, on January 1, 2021, Sosa Enterprises paid $2,060,000 for its investment in 30,000 shares of Orioles Co. Further, assume that Orioles has 100,000 total shares of stock issued and estimates an eight-year remaining useful life and straight-line depreciation with no residual value for its depreciable assets. At January 1, 2021, the book value of Orioles' identifiable net assets was $7,080,000, and the fair value of Orioles was $10,000,000. The difference between Orioles' fair value and the book value...
On January 1, 2017, Shamrock Co. purchased 26,000 shares (a 10% interest) in Elton John Corp....
On January 1, 2017, Shamrock Co. purchased 26,000 shares (a 10%
interest) in Elton John Corp. for $1,380,000. At the time, the book
value and the fair value of John’s net assets were
$14,200,000.
On July 1, 2018, Shamrock paid $3,000,000 for 52,000 additional
shares of John common stock, which represented a 20% investment in
John. The fair value of John’s identifiable assets net of
liabilities was equal to their carrying amount of $15,500,000. As a
result of this transaction,...
On January 1, 2017, Bonita Co. purchased 24,000 shares (a 10% interest) in Elton John Corp....
On January 1, 2017, Bonita Co. purchased 24,000 shares (a 10% interest) in Elton John Corp. for $1.450.000. At the time, the book value and the fair value of John's net assets were $12,000,000. On July 1, 2018, Bonita paid $2,740,000 for 48,000 additional shares of John common stock, which represented a 20% investment in John. The fair value of John's identifiable assets net of liabilities was equal to their carrying amount of $13,200,000. As a result of this transaction,...
On January 1, 2017, Pearl Co. purchased 23,000 shares (a 10% interest) in Elton John Corp....
On January 1, 2017, Pearl Co. purchased 23,000 shares (a 10%
interest) in Elton John Corp. for $1,330,000. At the time, the book
value and the fair value of John’s net assets were
$12,300,000.
On July 1, 2018, Pearl paid $2,840,000 for 46,000 additional shares
of John common stock, which represented a 20% investment in John.
The fair value of John’s identifiable assets net of liabilities was
equal to their carrying amount of $13,300,000. As a result of this
transaction,...
Exercise 22-22 On January 1, 2017, Headland Co. purchased 22,000 shares (a 10% interest) in Elton...
Exercise 22-22
On January 1, 2017, Headland Co. purchased 22,000 shares (a 10%
interest) in Elton John Corp. for $1,480,000. At the time, the book
value and the fair value of John’s net assets were
$12,100,000.
On July 1, 2018, Headland paid $3,340,000 for 44,000 additional
shares of John common stock, which represented a 20% investment in
John. The fair value of John’s identifiable assets net of
liabilities was equal to their carrying amount of $13,200,000. As a
result of...
Exercise 22-22 On January 1, 2017, Teal Co. purchased 27,000 shares (a 10% interest) in Elton...
Exercise 22-22 On January 1, 2017, Teal Co. purchased 27,000 shares (a 10% interest) in Elton John Corp. for $1,500,000. At the time, the book value and the fair value of John's net assets were $12,300,000. On July 1, 2018, Teal paid $3,170,000 for 54,000 additional shares of John common stock, which represented a 20% investment in John. The fair value of John's identifiable assets net of liabilities was equal to their carrying amount of $13,700,000. As a result of...
Roberto Corporation was organized on January 1, 2018. The firm was authorized to issue 96,000 shares...
Roberto Corporation was organized on January 1, 2018. The firm was authorized to issue 96,000 shares of $5 par common stock. During 2018, Roberto had the following transactions relating to shareholders' equity: Issued 10,500 shares of common stock at $6.80 per share. Issued 19,200 shares of common stock at $9.40 per share. Reported a net income of $99,000. Paid dividends of $53,000. Purchased 3,000 shares of treasury stock at $11.40 (part of the 19,200 shares issued at $9.40). What is...
5. Assume that, on January 1, 2018, Matsui Co. paid $1,200,000 for its investment in 60,000 shares of Yankee Inc. Further, assume that Yankee has 200,000 total shares of stock issued. The book value and fair value of Yankee's identifiable net assets were both $4,000,000 at January 1, 2018. The following information pertains to Yankee during 2018: S 200,000 S 60,000 $ Net Income Dividends declared and paid Market price of common stock on 12/31/2018 22 /share What amount would...
points Save Answe Assume that on January 1, 2021. Matsul Co. paid $1.296,000 for its investment in 48,000 shares of Yankee Inc. Further, assume that Yankee has 240.000 total shares of stock Issued. The book value and fair value of Yankee's identifiable net assets were both $480,000 at January 1 2021. The following information pertains to Yankee during 2021 Net Income 240 000 Dividends declared and paid $ 72,000 Market price of common stock on 12/31/2021 29 share What amount...
Assume that, on January 1, 2021, Sosa Enterprises paid $2,060,000 for its investment in 30,000 shares of Orioles Co. Further, assume that Orioles has 100,000 total shares of stock issued and estimates an eight-year remaining useful life and straight-line depreciation with no residual value for its depreciable assets. At January 1, 2021, the book value of Orioles' identifiable net assets was $7,080,000, and the fair value of Orioles was $10,000,000. The difference between Orioles' fair value and the book value...
On January 1, 2017, Shamrock Co. purchased 26,000 shares (a 10%
interest) in Elton John Corp. for $1,380,000. At the time, the book
value and the fair value of John’s net assets were
$14,200,000.
On July 1, 2018, Shamrock paid $3,000,000 for 52,000 additional
shares of John common stock, which represented a 20% investment in
John. The fair value of John’s identifiable assets net of
liabilities was equal to their carrying amount of $15,500,000. As a
result of this transaction,...
On January 1, 2017, Bonita Co. purchased 24,000 shares (a 10% interest) in Elton John Corp. for $1.450.000. At the time, the book value and the fair value of John's net assets were $12,000,000. On July 1, 2018, Bonita paid $2,740,000 for 48,000 additional shares of John common stock, which represented a 20% investment in John. The fair value of John's identifiable assets net of liabilities was equal to their carrying amount of $13,200,000. As a result of this transaction,...
On January 1, 2017, Pearl Co. purchased 23,000 shares (a 10%
interest) in Elton John Corp. for $1,330,000. At the time, the book
value and the fair value of John’s net assets were
$12,300,000.
On July 1, 2018, Pearl paid $2,840,000 for 46,000 additional shares
of John common stock, which represented a 20% investment in John.
The fair value of John’s identifiable assets net of liabilities was
equal to their carrying amount of $13,300,000. As a result of this
transaction,...
Exercise 22-22
On January 1, 2017, Headland Co. purchased 22,000 shares (a 10%
interest) in Elton John Corp. for $1,480,000. At the time, the book
value and the fair value of John’s net assets were
$12,100,000.
On July 1, 2018, Headland paid $3,340,000 for 44,000 additional
shares of John common stock, which represented a 20% investment in
John. The fair value of John’s identifiable assets net of
liabilities was equal to their carrying amount of $13,200,000. As a
result of...
Exercise 22-22 On January 1, 2017, Teal Co. purchased 27,000 shares (a 10% interest) in Elton John Corp. for $1,500,000. At the time, the book value and the fair value of John's net assets were $12,300,000. On July 1, 2018, Teal paid $3,170,000 for 54,000 additional shares of John common stock, which represented a 20% investment in John. The fair value of John's identifiable assets net of liabilities was equal to their carrying amount of $13,700,000. As a result of...
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