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: Use a t-chart for Equity Investments.
Homework Answers
| Amount paid for investment | 814000 | |
| Add: Share of net income | 103400 | =470000*22% |
| Less: Dividends paid | (32340) | =147000*22% |
| Balance in "Equity Investments" account for 2021 | 885060 |
Add Answer to:
Wildhorse Corporation purchased 22,000 shares of common stock, a
22% interest, of the Sherman Corporation for...
Wildhorse Corporation purchased 34000 shares of common stock of the Sherman Corporation for $49 per share on January 2, 2017
Wildhorse Corporation purchased 34000 shares of common stock of the Sherman Corporation for $49 per share on January 2, 2017. Sherman Corporation had 100000 shares of common stock outstanding during 2018, paid cash dividends of $159000 during 2018, and reported net income of $590000 for 2018. Wildhorse Corporation should report revenue from investment for 2018 in the amount of$220660 $146540$54060 $200600
Ziegler Corporation purchased 25,000 shares of common stock of the Sherman Corporation for $40 per share...
Ziegler Corporation purchased 25,000 shares of common stock of the Sherman Corporation for $40 per share on January 2, 2020. Sherman Corporation had 100,000 shares of common stock outstanding during 2021, paid cash dividends of $150,000 during 2018, and reported net income of $500,000 for 2021. Ziegler Corporation should report revenue from investment for 2018 in the amount of?
Pablo Corporation purchased 25,000 shares of common stock of the Twister Corporation for $40 per share...
Pablo Corporation purchased 25,000 shares of common stock of the Twister Corporation for $40 per share on January 2, 2020 and has significant influence. Twister Corporation had 100,000 shares of common stock outstanding during 2020, paid cash dividends of $150,000 during 2020, and reported net income of $500,000 for 2020. Pablo Corporation should report revenue from investment for 2020 in the amount of Answer:
1. Cullumber Corporation purchased 400 shares of Sherman Inc. common stock for $14,100 (Cullumber does not...
1. Cullumber Corporation purchased 400 shares of Sherman Inc. common stock for $14,100 (Cullumber does not have significant influence). During the year, Sherman paid a cash dividend of $3.25 per share. Assume the stock is nonmarketable. Prepare Cullumber’s journal entries to record (a) the purchase of the investment, (b) the dividends received, and (c) the fair value adjustment. (Assume a zero balance in the Fair Value Adjustment account.) 2. On January 1, 2017, Metlock Corporation purchased 40% of the common...
ABC Corporation purchased 25,000 shares of common stock of the Davison Corporation for $40 per share...
ABC Corporation purchased 25,000 shares of common stock of the Davison Corporation for $40 per share on January 2, 2018 (EQUITY METHOD). Davison Corporation had 100,000 shares of common stock outstanding during 2018, paid cash dividends of $150,000 during 2018, and reported net income of $500,000 for 2018. ABC Corporation should report revenue from investment for 2018 in the amount of ________.
During 2017, Wildhorse Company purchased 89000 shares of Holmes Corporation common stock for $1350000 as an...
During 2017, Wildhorse Company purchased 89000 shares of Holmes
Corporation common stock for $1350000 as an equity investment. The
fair value of these shares was $1281000 at December 31, 2017.
Wildhorse sold all of the Holmes stock for $17 per share on
December 3, 2018, incurring $65000 in brokerage commissions.
Wildhorse Company should report a realized gain on the sale of
stock in 2018 of
$98000.
$232000.
$163000.
$167000.
At a total cost of $6,030,000, Herrera Corporation acquired 224,000 shares of Tran Corp. common stock...
At a total cost of $6,030,000, Herrera Corporation acquired 224,000 shares of Tran Corp. common stock as a long-term investment. Herrera Corporation uses the equity method of accounting for this investment. Tran Corp. has 800,000 shares of common stock outstanding, including the shares acquired by Herrera Corporation. Required: A. Journalize the entries by Herrera Corporation on December 31 to record the following information (refer to the Chart of Accounts for exact wording of account titles): 1. Tran Corp. reports net...
1.McKinley Company owns 15,000 of the 50,000 outstanding shares of Ranier Corporation common stock but cannot...
1.McKinley Company owns 15,000 of the 50,000 outstanding shares of Ranier Corporation common stock but cannot exert significant influence over Ranier. During 2009, Ranier earns $350,000 and pays cash dividends of $140,000. a. Indicate the effect on McKinley's 2009 Net Income? b.what is the net change in McKinley's Investment account during 2009? 2.McKinley Company owns 15,000 of the 50,000 outstanding shares of Ranier Corporation common stock but can exert significant influence over Ranier. During 2009, Ranier earns $350,000 and pays...
On January 1, 2021, American Corporation purchased 30% of the outstanding voting shares of Short Supplies...
On January 1, 2021, American Corporation purchased 30% of the outstanding voting shares of Short Supplies common stock for $267.000 cash. On that date, Short's book value and fair value were both $890,000. The equity method is deemed appropriate for this investment. Short's net income reported on December 31, 2021, was $85,000. During 2021, Short also paid cash dividends in the amount of $26.500. Required: Compute the amount that would be reported for the investment on American Corporation's financial statements...
On January 1, 2019, Pearl Corporation purchased 30,000 of the 75,000 outstanding common shares of M....
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,...
Pablo Corporation purchased 25,000 shares of common stock of the Twister Corporation for $40 per share on January 2, 2020 and has significant influence. Twister Corporation had 100,000 shares of common stock outstanding during 2020, paid cash dividends of $150,000 during 2020, and reported net income of $500,000 for 2020. Pablo Corporation should report revenue from investment for 2020 in the amount of Answer:
During 2017, Wildhorse Company purchased 89000 shares of Holmes
Corporation common stock for $1350000 as an equity investment. The
fair value of these shares was $1281000 at December 31, 2017.
Wildhorse sold all of the Holmes stock for $17 per share on
December 3, 2018, incurring $65000 in brokerage commissions.
Wildhorse Company should report a realized gain on the sale of
stock in 2018 of
$98000.
$232000.
$163000.
$167000.
On January 1, 2021, American Corporation purchased 30% of the outstanding voting shares of Short Supplies common stock for $267.000 cash. On that date, Short's book value and fair value were both $890,000. The equity method is deemed appropriate for this investment. Short's net income reported on December 31, 2021, was $85,000. During 2021, Short also paid cash dividends in the amount of $26.500. Required: Compute the amount that would be reported for the investment on American Corporation's financial statements...
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,...
Most questions answered within 3 hours.
-
Write a command line to view the long listing of all files,
including hidden files, with...
asked 24 minutes ago -
What kind of experiment would allow you to test that the
posterior cytoplasm can cause the...
asked 3 minutes ago -
Code in C++ please!
Write a function that takes an array of integers as an input...
asked 5 minutes ago -
Predict the reactions, if any, when the
following hydrogen compounds are added to water, and
explain...
asked 24 minutes ago -
What is the expression for the uncertainty in the total energy
Etot of equation?
Assume an...
asked 27 minutes ago -
A sledge loaded with bricks has a total mass of 18.5 kg and is
pulled at...
asked 19 minutes ago -
In response to the increasing weight of airline passengers, the
Federal Aviation Administration told airlines to...
asked 27 minutes ago -
Events A and B are independent. Suppose event A occurs with
probability 0.63 and event B...
asked 37 minutes ago -
Rubies are essentially alumina Al2O3 with a contaminant of
chromium in the form of Cr2O3. A...
asked 45 minutes ago -
Write a full program that will accept
exactly three command line arguments
that can be interpreted as...
asked 47 minutes ago -
1.histones are proteins that make up nucleosomes. they bind to
the backbone of DNA in chromosomes....
asked 56 minutes ago -
What is the relationship between a variables value and their
probabilities as it is summarized by...
asked 1 hour ago