Homework Answers
Option (b) $ 280,000 is Right answer
The balance of stock investment are find out on the basis of following formula
Balance on 31st December,2020
= original investment + 25% share in Net income – 25% of cash dividend paid
|
Explanation |
Amount |
|
Investment ( Original cost) |
$ 270,000 |
|
Add : 25 % share of Net Income ( $ 80,000 *25 % ) |
$ 20,000 |
|
Less : 25 % share of Cash Dividend ( $ 40,000 * 25 % ) |
( $ 10,000) |
|
Balance on 31st December, 2020 |
$ 280,000 |
.
Add Answer to:
On January 1, 2020, Loko Corporation purchased 25% of the common stock outstanding of Temne Corporation...
Question: On January 1, 2020, Sunland Corporation purchased 36% of the common stock outstanding of Blossom...
Question: On January 1, 2020, Sunland Corporation purchased 36% of the common stock outstanding of Blossom Corporation for $67,000. During 2020, Blossom Corporation reported net income of $220,000 and paid cash dividends of $100,000. The balance of the Stock Investments - Blossom account on the books of Sunland Corporation at December 31,2020 is: a) 713,200 b) 749,200 c) 634,000 d) 670,000
Jenney Company had these transactions pertaining to stock investments: Feb. 1 Purchased 2,000 shares of Moure...
Jenney Company had these transactions pertaining to stock investments: Feb. 1 Purchased 2,000 shares of Moure Company (10%) for $75,000 cash. June 1 Received cash dividends of $2 per share on Moure stock. Oct. 1 Sold 1,200 shares of Moure stock for $62,400. The entry to record the purchase of the Moure stock would include a a. debit to Stock Investments for $45,900. b. credit to Cash for $55,900. c. debit to Stock Investments for $75,000. d. debit to Investment...
On January 1, 2020 Garner Corporation purchased 30% of the ordinary shares outstanding of Landon Corporation...
On January 1, 2020 Garner Corporation purchased 30% of the ordinary shares outstanding of Landon Corporation for $500,000. During 2020, Landon Corporation reported net income of $200,000 and paid cash dividends of $100,000. The balance of the Share Investments--Landon account on the books of Garner Corporation at December 31, 2020 is Select one: o $530,000 O $600,000 © $500,000 e $700,000
On January 1, 2020, Redmond Company purchased 3,000 of the 15,000 outstanding shares of common stock...
On January 1, 2020, Redmond Company purchased 3,000 of the 15,000 outstanding shares of common stock of Decca Computer (DC) Corporation for $80,000 cash as a long-term investment (the only long-term equity invest- ment held). The assets and liabilities of DC Corporation at the date of purchase approximate fair value. During 2020, DC reported net income of $25,000 and declared and paid cash dividends of $10,000. The fair value of DC Corporation at December 31, 2020, was $25 per share....
On January 1, 2020, Case Corporation purchased 3,000 of the 10,000 outstanding shares of common stock...
On January 1, 2020, Case Corporation purchased 3,000 of the 10,000 outstanding shares of common stock of Dow Corporation for $28,000 cash. At that date, Dow's balance sheet reflected the following book values. Assets not subject to depreciation . Assets subject to depreciation .. Liabilities. ........ Common stock (par $4) ........ Retained earnings, $10,000..... $25,000* 30,000** 5,000* 40,000 10,000 * Same as fair value. ** Fair value $38,000; the assets have a 10-year remaining useful life (straight-line depreciation). Dow Corporation...
Problem 4 (20 pts) On January 1, 2020, Jordan Inc. purchased 25% of the outstanding common...
Problem 4 (20 pts) On January 1, 2020, Jordan Inc. purchased 25% of the outstanding common stock of Melody Corporation at a cost of $450,000. Melody Corporation had 400,000 shares of common stock outstanding. At the date of purchase, the book value of Melody's net assets was $1,500,000. Book value and fair value of net assets were the same for all balance sheet items except for machinery and inventory. The fair value exceeded the book value by $100,000 for machinery...
Problem - On January 1, 2018, American Corporation purchased 25% of the outstanding voting shares of...
Problem - On January 1, 2018, American Corporation purchased 25% of the outstanding voting shares of Short Supplies common stock for $210,000 cash. On that date, Short's book value and fair walu were both $40,000. The equity method is deemed appropriate for this investment Short's net income reported on December 31, 2018, was 50,000. During 2018, Short also paid cash dividends in the amount of $24.000 Required: Prepare the journal entries necessary to record the above information on American Corporation's...
On January 1, 2020, Allen Corporation purchased 30% of the 15,000 outstanding common shares of Towne...
On January 1, 2020, Allen Corporation purchased 30% of the 15,000 outstanding common shares of Towne Corporation at $15 per share as a long-term investment. On the date of purchase, the book value and the fair value of the net assets of Towne Corporation were equal. During the year, Towne Corporation reported net income of $12,000. Towne Corporation declared and paid cash dividends of $4,000 on December 30, 2020, to shareholders on record. As of December 31, 2020, common shares...
Wildhorse Corporation purchased 22,000 shares of common stock, a 22% interest, of the Sherman Corporation for...
Wildhorse Corporation purchased 22,000 shares of common stock, a 22% interest, of the Sherman Corporation for $37 per share on January 1, 2020, spending a total of $814,000 on the investment. The investment enabled Wildhorse to exert significant influence over Sherman. Sherman Corporation had 100,000 shares of common stock outstanding during 2021, paid cash dividends of $147,000 during 2021, and reported net income of $470,000 for 2021. The balance in Wildhorse Corporation's "Equity Investments" account for 2021 should be: Hint:...
Problem 4 (20 pts) On January 1, 2020, Jordan Inc. purchased 30% of the outstanding common...
Problem 4 (20 pts) On January 1, 2020, Jordan Inc. purchased 30% of the outstanding common stock of Melody Corporation at a cost of $600,000. Melody Corporation had 800,000 shares of common stock outstanding. At the date of purchase, the book value of Melody's net assets was $1,500,000. Book value and fair value of net assets were the same for all balance sheet items except for machinery and inventory. The fair value exceeded the book value by $200,000 for machinery...
Jenney Company had these transactions pertaining to stock investments: Feb. 1 Purchased 2,000 shares of Moure Company (10%) for $75,000 cash. June 1 Received cash dividends of $2 per share on Moure stock. Oct. 1 Sold 1,200 shares of Moure stock for $62,400. The entry to record the purchase of the Moure stock would include a a. debit to Stock Investments for $45,900. b. credit to Cash for $55,900. c. debit to Stock Investments for $75,000. d. debit to Investment...
On January 1, 2020 Garner Corporation purchased 30% of the ordinary shares outstanding of Landon Corporation for $500,000. During 2020, Landon Corporation reported net income of $200,000 and paid cash dividends of $100,000. The balance of the Share Investments--Landon account on the books of Garner Corporation at December 31, 2020 is Select one: o $530,000 O $600,000 © $500,000 e $700,000
On January 1, 2020, Redmond Company purchased 3,000 of the 15,000 outstanding shares of common stock of Decca Computer (DC) Corporation for $80,000 cash as a long-term investment (the only long-term equity invest- ment held). The assets and liabilities of DC Corporation at the date of purchase approximate fair value. During 2020, DC reported net income of $25,000 and declared and paid cash dividends of $10,000. The fair value of DC Corporation at December 31, 2020, was $25 per share....
On January 1, 2020, Case Corporation purchased 3,000 of the 10,000 outstanding shares of common stock of Dow Corporation for $28,000 cash. At that date, Dow's balance sheet reflected the following book values. Assets not subject to depreciation . Assets subject to depreciation .. Liabilities. ........ Common stock (par $4) ........ Retained earnings, $10,000..... $25,000* 30,000** 5,000* 40,000 10,000 * Same as fair value. ** Fair value $38,000; the assets have a 10-year remaining useful life (straight-line depreciation). Dow Corporation...
Problem 4 (20 pts) On January 1, 2020, Jordan Inc. purchased 25% of the outstanding common stock of Melody Corporation at a cost of $450,000. Melody Corporation had 400,000 shares of common stock outstanding. At the date of purchase, the book value of Melody's net assets was $1,500,000. Book value and fair value of net assets were the same for all balance sheet items except for machinery and inventory. The fair value exceeded the book value by $100,000 for machinery...
Problem - On January 1, 2018, American Corporation purchased 25% of the outstanding voting shares of Short Supplies common stock for $210,000 cash. On that date, Short's book value and fair walu were both $40,000. The equity method is deemed appropriate for this investment Short's net income reported on December 31, 2018, was 50,000. During 2018, Short also paid cash dividends in the amount of $24.000 Required: Prepare the journal entries necessary to record the above information on American Corporation's...
On January 1, 2020, Allen Corporation purchased 30% of the 15,000 outstanding common shares of Towne Corporation at $15 per share as a long-term investment. On the date of purchase, the book value and the fair value of the net assets of Towne Corporation were equal. During the year, Towne Corporation reported net income of $12,000. Towne Corporation declared and paid cash dividends of $4,000 on December 30, 2020, to shareholders on record. As of December 31, 2020, common shares...
Problem 4 (20 pts) On January 1, 2020, Jordan Inc. purchased 30% of the outstanding common stock of Melody Corporation at a cost of $600,000. Melody Corporation had 800,000 shares of common stock outstanding. At the date of purchase, the book value of Melody's net assets was $1,500,000. Book value and fair value of net assets were the same for all balance sheet items except for machinery and inventory. The fair value exceeded the book value by $200,000 for machinery...
Most questions answered within 3 hours.
-
R2.84: There are 2 defective products in a production lot of 10.
An inspector randomly selected...
asked 23 minutes ago -
Consider the following equilibrium system: COCl2(g) CO(g) +
Cl2(g) A 10.00 L evacuated flask is filled...
asked 50 minutes ago -
1) What are the two distinct steps that one needs to perform
when developing a data...
asked 55 minutes ago -
2) Write a C++ program that uses a class called “Degree” to
obtain the trigonometric
values...
asked 1 hour ago -
1. In eukaryotic cells the genomes of
&
asked 1 hour ago -
The standard enthalpy of propanol (C3H7OH) is -303.0 kJ/mol.
Compute both of the
gross and net...
asked 1 hour ago -
Why PWM using H-bridge for control motor speed is more power
effiecient than the linear amplifier...
asked 2 hours ago -
In 1999, Carly Fiorina famously said,"I hope that we are at a
point that everyone is...
asked 2 hours ago -
Individuals in a species of moth vary in wing color from white to
black, but all...
asked 2 hours ago -
The following standards for variable manufacturing overhead have
been established for a company that makes only...
asked 2 hours ago -
The United States government wanted to determine what proportion
of Americans approve of the current president,...
asked 2 hours ago -
2-N stone is dropped from the top of a cliff. The stone hits the
ground 3...
asked 2 hours ago