5 28Investments in Associates and Joint Ventures319of 300,000 at year-end. In 20x2, Entity B reports loss of#200,000 and declares no dividends. What is the carryingamount of the investment in associate on December 31, 20x2?a. 550,000b. 590,000о existC. 600,000d. 640,000e.PROBLEM 2: FOR CLASSROOM DISCUSSION.On January 1 20 1 Entity A acquires 30% interest in Entity B 4. Entity A acquired 20% interest in Entity B on March 31, 20for P500,000. Entity B reports profit of P1M in 20x1, which wsearned evenly throughout the period, and declares dividenmethod, an investment in associate or joint venture is initiallyPROBLEMPROBLEM 1: MULTIPLE CHOICE1. According to PAS 28, significant influence is presumed to exiewhen the investorholds 10% or more of the voting power of the investeeb. holds 20% or more of the voting power of the investeeholds 51% or more of the voting power of the investeed. has the ability to appoint a majority of the investee's boarda.C.of directors.2. PAS 28 requires the use of the equity method. Under themethod, an investment in associate or joint venture is initialland subsequently measured atInitial measurementSubsequent measurementinitial cost, adjusted for the investor'sshare in the investee's changes ina.fair valueequitycost, adjusted for the investor's sharein the investee's changes in equityb. costfair value plusfair valueC.transaction costsfair value plusinitial cost, adjusted for the investor'sshare in the investee's changes ind.transaction costsequity3. Under the equity method, which of the following decreasesthe carrying amount of an investment in associate or jantventure?a. share in the profit of the investeeb. share in the other comprehensive income of the investeeC. share in the dividends declared by the investeed. a decline in the fair value of the investmentс.4. Entity A acquired 20% interest in Entity B on March 31, 20for P500,000. Entity B reports profit of $1M in 20x1, whic

Answer- Option B Holds 20% or more of the voting power of the investee.

Answered: 1. According to PAS 28, when the…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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If there are 10 directors to be elected and a shareholder owns 120 shares, calculate the maximum number of votes that he or she can cast for a favorite candidate under each of the voting methods.
Significant influence is normally presumed to exist if the investor owns at least a certain percentage of the investeecompany's ordinary shares. This percentage is_____.Select one:a.10%b.50%c.51%d.20%
For the purposes of equity accounting, it is presumed that tne investor has significant influence over the other entity where the investor holds: Select one: 0. 75% or more of the voting power of the investee. b. 205 or more of the voting power of the investee. C. between 5% and 105 of the voting power of the investee. d. 1005 of the voting power of tne investee.
4.The owners are desirous of comparing serval financial transactions and possible outcomes to assist in guiding their decision-making process. They assume that the company will be formed on January 1, 2020. In addition, E&B Comic Bookstore Company’s charter will authorize 1,200,000 shares of common stock (to be divided into two classes (700,000 shares class A -voting rights and 500,000 shares class B -nonvoting rights) and 400,000, $X par value (see info below), 5% cumulative preferred stock. A.Issued _50% ___shares of class A common stock. Stock has par value of _$ 45.00__ per share and was issued at $_75___ per share. B.Issued ___50%__ shares of no-par class B stock .(issue price $ 70.00) C. Issued __25%_____ shares of preferred stock at par value. ( Par value $ 145.00) D.Exchanged __40% of authorized shares of class A common stock for Office Furniture and Equipment with an appraised value of $___$ 4,000,000.00___ and Motor Truck with an appraised value of $ 10,000,000.00___.…
3a) Explain who is a member of a company and what are the rights and liabilities of members.(b) Discuss the differences between transfer of shares and transmission of shares. Minimum 1000word - no handwriting
The owners are desirous of comparing serval financial transactions and possible outcomes to assist in guiding their decision-making process. They assume that the company will be formed on January 1, 2021. In addition, J&K Paint Shop Company’s charter will authorize 1,200,000 shares of common stock (to be divided into two classes (700,000 shares class A -voting rights and 500,000 shares class B -nonvoting rights) and 400,000, $X par value (see info below), 5% cumulative preferred stock. They have asked each student from your accounting course to prepare the company’s journal entries and statement of owner’s equity based on the following information . Issued 40% of authorized shares of class A common stock. Stock has par value of $45 per share and was issued at $62 per share. Issued at $60, 40% of authorized shares of no-par class B stock. Issued 30% of authorized shares of preferred stock at par value $125. Exchanged 40% of authorized shares of class A common stock for Office…
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Part 1 Which are rights of common stockholders? Check all that apply: The right to a share of dividends paid The right to vote for members of the board of directors The right to vote on major decisions at the annual general meeting The right to receive regular dividends Submit
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4. The owners are desirous of comparing serval financial transactions and possible outcomes to assist in guiding theirdecision-making process. They assume that the company will be formed on January 1, 2020. In addition, E&B ComicBookstore Company’s charter will authorize 1,200,000 shares of common stock (to be divided into two classes (700,000shares class A -voting rights and 500,000 shares class B -nonvoting rights) and 400,000, $X par value (see info below),5% cumulative preferred stock. They have asked each student from your accounting course to prepare the company’sjournal entries and statement of owner’s equity based on the following information which is grouped according to your firstname initial. (Hint!!!! Example first Manuel will use the initial M and that person should only use the info presentedin line with the heading with their first name initial. You are not allowed to use info associated other initials otherthan that of your own. My initial is S A. Issued ____shares…

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1. According to PAS 28, when the investor holds 10% or more of the voting power of the investee. b. holds 20% or more of the voting power of the investee holds 51% or more of the voting power of the investee. d. has the ability to appoint a majority of the investee's boa 28, SI a. C. of directors.