Homework Answers
| Answer: | |
| Particulars | Amount (in $ ) |
| Cash paid for Acquisition | $ 267,000 |
|
Add: Proportion of Net income ( $ 85,000 x 30% ) |
$ 25,500 |
|
Less : Dividends paid ( $ 26,500 x 30% ) |
($ 7,950) |
| Amount reported for the Investemnt | $ 284,550 |
Add Answer to:
On January 1, 2021, American Corporation purchased 30% of the outstanding voting shares of Short Supplies...
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...
Problem- 2 On January 1, 2013, American Corporation purchased 25% of the outstanding ordinary shares of...
Problem- 2 On January 1, 2013, American Corporation purchased 25% of the outstanding ordinary shares of Short Supplies for $210,000 cash. On that date, Short's book value and fair value were both $840,000. The equity method is deemed appropriate for this investment. Short's net income reported on December 31, 2013, was $80,000. During 2013, Short also paid cash dividends in the amount of $24,000. Required: Compute the amount that would be reported for the investment on American Corporation's financial statements...
Loreal-American Corporation purchased several marketable securities during 2021. At December 31, 2021, the company had the...
Loreal-American Corporation purchased several marketable securities during 2021. At December 31, 2021, the company had the investments in bonds listed below. None was held at the last reporting date, December 31, 2020, and all are considered securities available-for-sale. Unrealized Holding Gain (Loss) Cost Fair Value $ 508,000 464,000 $ 972,000 $ 391,000 508,000 $ 899,000 $(117,000) 44,000 $ (73,000) Short term: Blair, Inc. ANC Corporation Totals Long term: Drake Corporation Aaron Industries Totals $ 508,000 $ 574,000 706,000 674,000 $1,214,000...
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...
On January 1, 20X7, Yang Corporation acquired 25 percent of the outstanding shares of Spiel Corporation...
On January 1, 20X7, Yang Corporation acquired 25 percent of the outstanding shares of Spiel Corporation for $100,000 cash. Spiel Company reported net income of $75,000 and paid dividends of $30,000 for both 20X7 and 20X8. The fair value of shares held by Yang was $110,000 and $105,000 on December 31, 20X7 and 20X8 respectively.Based on the preceding information, what amount will be reported by Yang as balance in investment in Spiel on December 31, 20X8, if it used the...
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...
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...
5.) On January 1, 2017, Vancouver Corporation paid $400,000 to purchase 40% of the outstanding voting...
5.) On January 1, 2017, Vancouver Corporation paid $400,000 to purchase 40% of the outstanding voting stock of Montreal Corporation. The equity method is used to account for the investment. The following data relate to this investment. (20 marks) 2017 Dividends received from Montreal Corporation amounted to $20,000. Net income reported by Montreal Corporation was $200,000. Current market value of Montreal Corporation investment on December 31, 2017, was $700,000. 2018 Dividends received from Montreal Corporation amounted to $30,000. Net income...
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...
On July 1, 2021, Clearwater Inc. purchased 8,000 shares of the outstanding common stock of Mountain...
On July 1, 2021, Clearwater Inc. purchased 8,000 shares of the outstanding common stock of Mountain Corporation at a cost of $160,000. Mountain had 40,000 shares of outstanding common stock. The total book value and total fair value of Mountain’s individual net assets on July 1, 2021, are both $800,000. The total fair value of the 40,000 shares of Mountain’s common stock on December 31, 2021, is $860,000. Both companies have a January through December fiscal year. The following data...
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...
Loreal-American Corporation purchased several marketable securities during 2021. At December 31, 2021, the company had the investments in bonds listed below. None was held at the last reporting date, December 31, 2020, and all are considered securities available-for-sale. Unrealized Holding Gain (Loss) Cost Fair Value $ 508,000 464,000 $ 972,000 $ 391,000 508,000 $ 899,000 $(117,000) 44,000 $ (73,000) Short term: Blair, Inc. ANC Corporation Totals Long term: Drake Corporation Aaron Industries Totals $ 508,000 $ 574,000 706,000 674,000 $1,214,000...
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...
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...
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...
5.) On January 1, 2017, Vancouver Corporation paid $400,000 to purchase 40% of the outstanding voting stock of Montreal Corporation. The equity method is used to account for the investment. The following data relate to this investment. (20 marks) 2017 Dividends received from Montreal Corporation amounted to $20,000. Net income reported by Montreal Corporation was $200,000. Current market value of Montreal Corporation investment on December 31, 2017, was $700,000. 2018 Dividends received from Montreal Corporation amounted to $30,000. Net income...
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...
Most questions answered within 3 hours.
-
Calculate the pH of a 5.7 M solution of aniline (C6H5NH2; Kb =
3.8 x 10^-10)
asked 35 minutes ago -
LSL R3, R3, R12
Memory
Address
Orig.
Data
Updated
Data
Register
Orig.
Data
Updated
Data
0x84F0...
asked 38 minutes ago -
Air at 100 kPa and density of 1.2 kg/m3 flows upward through a
5-cm diameter inclined...
asked 45 minutes ago -
Define the following concepts in your own words: (a) stiffness,
(b) strength, (c) strain,
(d) ductility,...
asked 1 hour ago -
In C++
In this homework, you will be tasked with creating functions to
manipulate strings that...
asked 2 hours ago -
An isolated colony represents a pure culture. one rare occasions
, however , a colony can...
asked 2 hours ago -
*****DO NOT ANSWER THIS QUESTION IF YOU DON'T
KNOW*******Rights and Duties of Auditors; Minimum 4000
words...
asked 3 hours ago -
The probability that Janie is wearing sunglasses is 1/4. The
probability that she is wearing sunglasses...
asked 3 hours ago -
Do you believe social media is more of a help or a hindrance in
controlling crises...
asked 4 hours ago -
Two long, parallel wires separated by 2.85 cm carry currents in
opposite directions. The current in...
asked 3 hours ago -
Question # 1. Develop a list of rehabilitation journals
that publish articles concerning career counseling for...
asked 3 hours ago -
Bryant Company has a factory machine with a book value of
$85,100 and a remaining useful...
asked 3 hours ago