Stellar Co. invested $1,060,000 in Pearl Co.for 25% of its outstanding stock. Pearl Co. pays out...
Sheridan Co. invested $980,000 in Skysong Co. for 25% of its outstanding stock. Skysong Co. pays out 30% of net income in dividends each year. Use the information in the following T-account for the investment in Skysong to answer the following questions. Investment in Skysong Co. 980,000 113,000 33,900 (a) How much was Sheridan Co.’s share of Skysong Co.’s net income for the year? Net income (b) What was Skysong Co.’s total net income for the year? Total net income...
Skysong Co. invested $1,010,000 in Concord Co. for 25% of its outstanding stock. Concord Co. pays out 30% of net income in dividends each year. Use the information in the following T-account for the investment in Concord to answer the following questions. Investment in Concord Co. 1,010,000 99,000 29,700 (a) How much was Skysong Co.’s share of Concord Co.’s net income for the year? Net income $ (b) What was Concord Co.’s total net income for the year? Total net...
Culver Co. invested $1,080,000 in Larkspur Co. for 25% of its outstanding stock. Larkspur Co. pays out 40% of net income in dividends each year. Use the information in the following T-account for the investment in Larkspur to answer the following questions. Investment in Larkspur Co Dr. Cr. 1,080,000 116,000 46,400 (a) How much was Culver Co.’s share of Larkspur Co.’s net income for the year? (b) What was Larkspur Co.’s total net income for the year? (c) What was...
Tamarisk Co. invested $940,000 in Vaughn Co. for 25% of its outstanding stock. Vaughn Co. pays out 40% of net income in dividends each year. Use the information in the following T-account for the investment in Vaughn to answer the following questions. Investment in Vaughn Co. 940,000 105,000 42,000 (a) How much was Tamarisk Co.’s share of Vaughn Co.’s net income for the year? (b) What was Vaughn Co.’s total net income for the year? (c) What was Vaughn Co.’s...
Monty Co. invested $1,020,000 in Flounder Co. for 25% of its
outstanding stock. Flounder Co. pays out 30% of net income in
dividends each year.
Use the information in the following T-account for the investment
in Flounder to answer the following questions.
Investment in Flounder Co.
1,020,000
111,000
33,300
(a) How much was Monty Co.’s share of Flounder
Co.’s net income for the year?
Net income
$enter Monty’s net income in dollars
(b) What was Flounder Co.’s total net income...
Exercise 17-13 Parent Co. invested $1,000,000 in Sub Co. for 25% of its outstanding stock. Sub Co. pays out 40% of net income in dividends each year. Use the information in the following T-account for the investment in Sub to answer the following questions. Investment in Sub Co. 1,000,000 110,000 44,000 (a) How much was Parent Co.'s share of Sub Co.'s net income for the year? Net income $ (b) What was Sub Co.'s total net income for the year?...
HW 17-8 Equity Method-Significant Influence Judd Co. invested $5,000,000 in Jones, Inc. for 30% of its outstanding stock. At the time of the purchase, Jones had a book value of $15,000,000. Jones, Inc. pays out 75% of net income in dividends each year. Use the information in the following T-account for the investment in Jones, Inc. to answer the following questions. Investment in Jones, Inc. $5,000,000 360,000 270,000 a. How much was Judd's share of Jones, Inc. net income for...
On January 1, 2019, Pearl Corporation purchased 30,000 of the 75,000 outstanding common shares of M. Krab Corporation for $24 per share cash. During the year, M. Krab Corporation paid $1.50 per share cash dividends and reported $880,000 of net income. At the end of 2019, the M. Krab Corporation common stock is selling at $29 per share. Pearl Corporation must use the equity method to account for this investment. Why? We were unable to transcribe this imageOn January 1,...
Pearl Inc. acquired 20% of the outstanding common stock of Theresa Kulikowski Inc, on December 31, 2020. The purchase price was $1,294,800 for 49,800 shares. Kulikowski Inc. declared and paid an $0.75 per share cash dividend on June 30 and on December 31, 2021. Kulikowski reported net income of $764,000 for 2021. The fair value of Kulikowski's stock was $29 per share at December 31, 2021. Assume that the security is a trading security. Prepare the journal entries for Pearl...
Stellar Co. reported $149,400 of net income for 2017. The accountant, in preparing the statement of cash flows, noted the following items occurring during 2017 that might affect cash flows from operating activities. Stellar purchased 100 shares of treasury stock at a cost of $20 per share. These shares were then resold at $25 per share. Stellar sold 100 shares of IBM common at $180 per share. The acquisition cost of these shares was $130 per share. There were no...