Jones Inc. purchased 25% of Prince Inc. on January 2, 2018 for $10 million and did...
Jones Inc. purchased 25% of Prince Inc. on January 2, 2018 for $10 million and did not elect the fair value option. During 2018, Prince had net income of $3,000,000 and paid total dividends of $2,000,000. The fair value of the Prince Inc. shares owned by Jones Inc. was $11,000,000 at 12/31/18. Based on the information above, prepare the journal entries for 2018.
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Jones Inc. purchased 25% of Prince Inc. on January 2,
2018 for $10 million and did...
On January 4, 2018, Runyan Bakery paid $332 million for 10 million shares of Lavery Labeling...
On January 4, 2018, Runyan Bakery paid $332 million for 10 million shares of Lavery Labeling Company common stock. The investment represents a 30% interest in the net assets of Lavery and gave Runyan the ability to exercise significant influence over Lavery's operations. Runyan chose the fair value option to account for this investment. Runyan received dividends of $4.50 per share on December 15, 2018, and Lavery reported net income of $190 million for the year ended December 31, 2018....
Colah Company purchased $3.0 million of Jackson, Inc. 5% bonds at par on July 1, 2018,...
Colah Company purchased $3.0 million of Jackson, Inc. 5% bonds at par on July 1, 2018, with interest paid semi-annually. When the bonds were acquired Colah decided to elect the fair value option for accounting for its investment. At December 31, 2018, the Jackson bonds had a fair value of $3.40 million. Colah sold the Jackson bonds on July 1, 2019 for $2,700,000. The purchase of the Jackson bonds on July 1. Interest revenue for the last half of 2018....
ON 30 June 20X2, King Ltd, purchased 10,000 shares of Prince Inc. for $12,000 plus $ 1,000 in com...
ON 30 June 20X2, King Ltd, purchased 10,000 shares of Prince Inc. for $12,000 plus $ 1,000 in commission. In 20X2 the company received $500 of dividends, and the shares had a fair value of $16,000 at the end of the year. In 20X3 there were no dividends, and the shares were sold for 422,000 less a $500 commission. 1. Prepare journal entries for 20X2 and 20X3 a. Assuming King reports under ASPE and has chosen the cost method. b....
On January 4, 2018, Runyan Bakery paid $330 million for 10 million shares of Lavery Labeling...
On January 4, 2018, Runyan Bakery paid $330 million for 10 million shares of Lavery Labeling Company common stock. The Investment represents a 30% interest in the net assets of Lavery and gave Runyan the ability to exercise significant influence over Lavery's operations. Runyan chose the fair value option to account for this investment. Runyan received dividends of $300 per share! on December 15, 2018. and Lavery reported net income of $180 million for the year ended December 31, 2018...
2. On January 2, 2017, Howdy Doody Corporation purchased 12% of Ranger Corporation's common stock for...
2. On January 2, 2017, Howdy Doody Corporation purchased 12% of Ranger Corporation's common stock for $50,000. Ranger's net income for the years ended December 31, 2017 and 2018, were $10,000 and $50,000, respectively. During 2018, Ranger declared and paid a dividend of $60,000. There were no dividends in 2017. On December 31, 2017, the fair value of the Ranger stock owned by Howdy Doody had increased to $70,000. How much should Howdy Doody show in the 2018 income statement...
On January 4, 2018, Runyan Bakery paid $358 million for 10 million shares of Lavery Labeling...
On January 4, 2018, Runyan Bakery paid $358 million for 10 million shares of Lavery Labeling Company common stock. The investment represents a 30% interest in the net assets of Lavery and gave Runyan the ability to exercise significant influence over Lavery's operations. Runyan chose the fair value option to account for this investment. Runyan received dividends of $3.50 per share on December 15, 2018, and Lavery reported net income of $320 million for the year ended December 31, 2018....
As a long-term investment at the beginning of the 2018 fiscal year, Florists International purchased 20%...
As a long-term investment at the beginning of the 2018 fiscal year, Florists International purchased 20% of Nursery Supplies Inc.’s 5 million shares for $20 million. The fair value and book value of the shares were the same at that time. The company realizes that this investment typically would be accounted for under the equity method, but instead chooses the fair value option. During the year, Nursery Supplies earned net income of $10 million and distributed cash dividends of $1.00...
On January 4, 2018, Runyan Bakery paid $334 million for 10 million shares of Lavery Labeling...
On January 4, 2018, Runyan Bakery paid $334 million for 10 million shares of Lavery Labeling Company common stock. The investment represents a 30% interest in the net assets of Lavery and gave Runyan the ability to exercise significant influence over Lavery's operations. Runyan received dividends of $4.00 per share on December 15, 2018, and Lavery reported net income of $200 million for the year ended December 31, 2018. The market value of Lavery's common stock at December 31, 2018,...
On January 1, 2018, Cameron Inc. bought 10 % of the outstanding common stock of Lake...
On January 1, 2018, Cameron Inc. bought 10 % of the outstanding common stock of Lake Construction Company for $190 million cash. At the date of acquisition of the stock, Lake's net assets had a fair value of $900 million. Their book value was $800 million, The difference was attributable to the fair value of Lake's buildings and its land exceeding book value, each accounting for one-half of the difference. Lake's net income for the year ended December 31, 2018,...
9. Wilson Company acquired 10% of Rogers, Inc. on January 1, 2018 for $200,000 und appropriately...
9. Wilson Company acquired 10% of Rogers, Inc. on January 1, 2018 for $200,000 und appropriately accounted for the investment using the fair value method. On January , 2019 the fair value of Rogers stock was $3,000,000 in total. On January 1, 2019, Wilson also acquired an additional 30% of Rogers for $800,000 which resulted in significant influence over Rogers' operations. Roger's book value on January 1, 2019 was $2,000,000, although they owned a patent that was not recorded on...
On January 4, 2018, Runyan Bakery paid $330 million for 10 million shares of Lavery Labeling Company common stock. The Investment represents a 30% interest in the net assets of Lavery and gave Runyan the ability to exercise significant influence over Lavery's operations. Runyan chose the fair value option to account for this investment. Runyan received dividends of $300 per share! on December 15, 2018. and Lavery reported net income of $180 million for the year ended December 31, 2018...
2. On January 2, 2017, Howdy Doody Corporation purchased 12% of Ranger Corporation's common stock for $50,000. Ranger's net income for the years ended December 31, 2017 and 2018, were $10,000 and $50,000, respectively. During 2018, Ranger declared and paid a dividend of $60,000. There were no dividends in 2017. On December 31, 2017, the fair value of the Ranger stock owned by Howdy Doody had increased to $70,000. How much should Howdy Doody show in the 2018 income statement...
On January 4, 2018, Runyan Bakery paid $358 million for 10 million shares of Lavery Labeling Company common stock. The investment represents a 30% interest in the net assets of Lavery and gave Runyan the ability to exercise significant influence over Lavery's operations. Runyan chose the fair value option to account for this investment. Runyan received dividends of $3.50 per share on December 15, 2018, and Lavery reported net income of $320 million for the year ended December 31, 2018....
On January 4, 2018, Runyan Bakery paid $334 million for 10 million shares of Lavery Labeling Company common stock. The investment represents a 30% interest in the net assets of Lavery and gave Runyan the ability to exercise significant influence over Lavery's operations. Runyan received dividends of $4.00 per share on December 15, 2018, and Lavery reported net income of $200 million for the year ended December 31, 2018. The market value of Lavery's common stock at December 31, 2018,...
On January 1, 2018, Cameron Inc. bought 10 % of the outstanding common stock of Lake Construction Company for $190 million cash. At the date of acquisition of the stock, Lake's net assets had a fair value of $900 million. Their book value was $800 million, The difference was attributable to the fair value of Lake's buildings and its land exceeding book value, each accounting for one-half of the difference. Lake's net income for the year ended December 31, 2018,...
9. Wilson Company acquired 10% of Rogers, Inc. on January 1, 2018 for $200,000 und appropriately accounted for the investment using the fair value method. On January , 2019 the fair value of Rogers stock was $3,000,000 in total. On January 1, 2019, Wilson also acquired an additional 30% of Rogers for $800,000 which resulted in significant influence over Rogers' operations. Roger's book value on January 1, 2019 was $2,000,000, although they owned a patent that was not recorded on...
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