Homework Answers
calculation of income effect for the year ending dec 21- 2021
particulars upto oct 2021 = 10 months after nov 2021= 2 months
profit before any adjustment 364000+18000(patents cost) 318333 63667
less:- extraordinary loss 100000 nil
less:- patents cost 15000 3000
total 203333 60667
share holding 36% 27%
income to be consolidated 73200 16380
b) extraordinary loss of 100000 is included in 73200 profit as stated above which is 36% of shareholding.
c) gain / loss on sale of investment are as follows
investment on jan 1, 2021 270000
add:- income upto oct 73200
total:- 343200
for 30000 share total investment is 343200
so for 7500 shares investment is 343200/30000*7500= 85800
sale value- 82000
less investment value- 85800
loss on sale- 3800
stock reserve is not taken in calculation as it is lying on dec 2021 which is not considered in gain /loss
Add Answer to:
4. Penston Company owns 36 percent (30,000 shares) of Scranton, Inc., which it purchased several years...
On January 1, 2021, Pine Company owns 40 percent (128,000 shares) of Seacrest, Inc., which it...
On January 1, 2021, Pine Company owns 40 percent (128,000 shares) of Seacrest, Inc., which it purchased several years ago for $665,600. Since the date of acquisition, the equity method has been properly applied, and the carrying amount of the investment account as of January 1, 2021, is $876,800. Excess patent cost amortization of $38,400 is still being recognized each year. During 2021, Seacrest reports net income of $870,000 and a $384,000 other comprehensive loss, both incurred uniformly throughout the...
On January 1, 2021, Pine Company owns 40 percent (104,000 shares) of Seacrest, Inc., which it...
On January 1, 2021, Pine Company owns 40 percent (104,000 shares) of Seacrest, Inc., which it purchased several years ago for $499,200. Since the date of acquisition, the equity method has been properly applied, and the carrying amount of the investment account as of January 1, 2021, is $670,800. Excess patent cost amortization of $31,200 is still being recognized each year. During 2021, Seacrest reports net income of $726,000 and a $312,000 other comprehensive loss, both incurred uniformly throughout the...
On January 1, 2021, Pine Company owns 40 percent (52,000 shares) of Seacrest, Inc., which it...
On January 1, 2021, Pine Company owns 40 percent (52,000 shares) of Seacrest, Inc., which it purchased several years ago for $247,000. Since the date of acquisition, the equity method has been properly applied, and the carrying amount of the investment account as of January 1, 2021, is $332,800 Excess patent cost amortization of $15 600 is still being recognized each year. During 2021. Seacrest reports net income of $414000 and a $156,000 other comprehensive loss, both incurred uniformly throughout...
Problem 1-29 (LO 1-3, 1-4, 1-5b, 1-6) On January 1, 2018, Pine Company owns 40 percent...
Problem 1-29 (LO 1-3, 1-4, 1-5b, 1-6) On January 1, 2018, Pine Company owns 40 percent (96,000 shares) of Seacrest, Inc., which it purchased several years ago for $487,200. Since the date of acquisition, the equity method has been properly applied, and the carrying amount of the investment account as of January 1, 2018, is $645,600. Excess patent cost amortization of $28.800 is still being recognized each year. During 2018, Seacrest reports net income of $678,000 and a $288,000 other...
On January 1, 2018, Jammin’ Company owns 40 percent (40,000 shares) of Benji, Inc., which it purc...
On January 1, 2018, Jammin’ Company owns 40 percent (40,000 shares) of Benji, Inc., which it purchased several years ago for $364,000. Since the date of acquisition, the equity method has been properly applied, and the carrying amount of the investment account as of January 1, 2018, is $587,200. Excess patent cost amortization of $24,000 is still being recognized each year. During 2018, Benji reports net income of $684,000 and a $240,000 other comprehensive loss, both incurred uniformly throughout the...
PROBLEM 1 (20 points) On January 1, 2018, G'Kar Company owns 40 percent (40,000 shares) of...
PROBLEM 1 (20 points) On January 1, 2018, G'Kar Company owns 40 percent (40,000 shares) of Lorien, Inc., which it purchased several years ago for $182,000. Since the date of acquisition, the equity method has been properly applied, and the carrying amount of the investment account as of January 1, 2018, is $293,600. Excess patent cost amortization of $12,000 is still being recognized each year. During 2018, Lorien reports net income of $342,000 and a $120,000 other comprehensive loss, both...
Pearl Company owns 60% of the voting shares of Jasper Inc. which it acquired on the...
Pearl Company owns 60% of the voting shares of Jasper Inc. which it acquired on the latter’s incorporation on January 1, 2012, and accounts for its investment using the cost method. The Income Statements for the two companies for the year ended December 31, 2012, are as follows: Pearl Company Jasper Inc. Sales $ 3,200,000 $ 1,200,000 Dividend income 60,000 - 3,260,000 1,200,000 Cost of sales 2,400,000 900,000 Other expenses 300,000 ...
During 2018 Sandhill Company purchased 9600 shares of Midi, Inc. for $26 per share. During the...
During 2018 Sandhill Company purchased 9600 shares of Midi, Inc. for $26 per share. During the year Sandhill Company sold 2300 shares of Midi, Inc. for $31 per share. At December 31, 2018 the market price of Midi, Inc.’s stock was $24 per share. What is the total amount of gain/(loss) that Sandhill Company will report in its income statement for the year ended December 31, 2018 related to its investment in Midi, Inc. stock?
Darlene owns 500 shares of Sandmayor, Inc., common stock that she purchased several years ago for...
Darlene owns 500 shares of Sandmayor, Inc., common stock that she purchased several years ago for $20,500. During the current year, the Sandmayor stock declines in value. Darlene decides to sell the stock to realize the tax loss. On December 17, she sells the 500 shares for $12,000. Her investment adviser tells her she thinks the Sandmayor stock probably will begin to increase in value next year. On this advice, Darlene purchases 600 shares of Sandmayor common stock on January...
During 2011 Kim Company purchased 4,000 shares of Peacock, Inc. for $30 per share. The investment...
During 2011 Kim Company purchased 4,000 shares of Peacock, Inc. for $30 per share. The investment was classified as a trading security. During the year Kim Company sold 1,000 shares of Peacock, Inc. for $35 per share. At December 31, 2011 the market price of Peacock, Inc.'s stock was $28 per share. Whats is the total amount of gain/(loss) Kim Company will report in its income statement for the year ended December 31, 2011 related to its investment in Peacock,...
On January 1, 2021, Pine Company owns 40 percent (128,000 shares) of Seacrest, Inc., which it purchased several years ago for $665,600. Since the date of acquisition, the equity method has been properly applied, and the carrying amount of the investment account as of January 1, 2021, is $876,800. Excess patent cost amortization of $38,400 is still being recognized each year. During 2021, Seacrest reports net income of $870,000 and a $384,000 other comprehensive loss, both incurred uniformly throughout the...
On January 1, 2021, Pine Company owns 40 percent (52,000 shares) of Seacrest, Inc., which it purchased several years ago for $247,000. Since the date of acquisition, the equity method has been properly applied, and the carrying amount of the investment account as of January 1, 2021, is $332,800 Excess patent cost amortization of $15 600 is still being recognized each year. During 2021. Seacrest reports net income of $414000 and a $156,000 other comprehensive loss, both incurred uniformly throughout...
Problem 1-29 (LO 1-3, 1-4, 1-5b, 1-6) On January 1, 2018, Pine Company owns 40 percent (96,000 shares) of Seacrest, Inc., which it purchased several years ago for $487,200. Since the date of acquisition, the equity method has been properly applied, and the carrying amount of the investment account as of January 1, 2018, is $645,600. Excess patent cost amortization of $28.800 is still being recognized each year. During 2018, Seacrest reports net income of $678,000 and a $288,000 other...
PROBLEM 1 (20 points) On January 1, 2018, G'Kar Company owns 40 percent (40,000 shares) of Lorien, Inc., which it purchased several years ago for $182,000. Since the date of acquisition, the equity method has been properly applied, and the carrying amount of the investment account as of January 1, 2018, is $293,600. Excess patent cost amortization of $12,000 is still being recognized each year. During 2018, Lorien reports net income of $342,000 and a $120,000 other comprehensive loss, both...
Most questions answered within 3 hours.
-
What steps would you take to institutionalize the controls you’d
select for your organization? Where do...
asked 10 minutes ago -
Learning aquatic zumba is an example of tacit knowledge. true or
false
asked 10 minutes ago -
Table salt contains 39.33 g of sodium per 100 g of salt. The
U.S. Food and...
asked 27 minutes ago -
C&A records the following profit figures for the last six
months in Excel for a linear...
asked 25 minutes ago -
This needs to be done in c++11 and be compatible with g++
compiling
Project description:
Write...
asked 26 minutes ago -
.
NEED ANSWER ASAP
******NEW ANSWER NEVER USED BEFORE****
Write a page paper on conducting marketing...
asked 28 minutes ago -
Assume that capital markets are competitive and that the
international Fisher hypothesis holds. The one-year interest...
asked 54 minutes ago -
Solid potassium phosphate is slowly added to 150 mL of a 0.0518
M calcium nitrate solution....
asked 1 hour ago -
(CO 2) A field can be added to a report to
values for two or more...
asked 2 hours ago -
Identify 3 research scenarios that might provide a low,
medium, and high degree of variability in...
asked 3 hours ago -
how
does gravity affect the trajectory of projectile? what would be the
shape of the trajactory...
asked 4 hours ago -
Two small plastic spheres are given positive electrical charges.
When they are a distance of 15.4...
asked 4 hours ago