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- Marigold Corporation purchased 440 shares of Sherman Inc. common stock for $14,400 (Marigold does not have significant influence). During the year, Sherman paid a cash dividend of $3.25 per share. At year-end, Sherman stock was selling for $37.00 per share.Prepare Marigold'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.)On December 15, 2021, Blue Company paid $100,000 for 8,000 shares of Marble Company common stock. The ownership in Marble Company is 10%. Marble reported net income of $64,000 for the year ended December 31, 2021. The fair value of the Marble stock on that date was $54 per share. What amount will be reported in the balance sheet of Blue Company for the investment in Marble at December 31, 2021? Multiple Choice There is no correct answer. $387,000. $357,000. $372,000. $432,000.Lemon Ltd has a December 31 year end. On January 1, 2018 Lemon acquires 4000 shares of Nike Inc at a cost of $150 per share. Transaction cost is $1200. The Investment is classified as available for Sale. On December 31, 2018 the Fair Value of Nike share has decreased to $120/share. On March 1, 2019 Lemon Ltd sells the shares for $135 per share. Transaction cost for the sale is $2000. Record the journal entries in the books of Lemon Ltd.
- Tamarisk Inc., a public company, owns 20% of Dong Ltd's common shares for strategic purposes. The investment's carrying amount at January 1, 2024, is $299,000. During the year, Dong reported profit of $255,400 and paid a dividend of $22,400. The investment's fair value on December 31, 2024, Tamarisk's year end, is $316,100. (a) Assuming Tamarisk has significant influence over Dong, indicate the amount reported on the balance sheet for the investment at December 31 and the amount of income from this investment reported in the income statement. Balance Sheet: Income Statement: eTextbook and Media $ Equity MethodABC Corp has excess cash to invest and wants to buy shares of XYZ Inc to profit from the changes in their value. The company follows IFRS and will account for its investment in XYZ Inc using the FV-NI method and has a December 31 year end. The share price of XYZ Inc was $58.47 on March 1, $49.67 on September 15, and $54.05 on December 31. ABC Corp purchased 58,405 shares of XYZ Inc on March 1 and sold 37,201 of them on September 15. It still owned the remaining shares on December 31. The company paid a per-share commission fee of 1.67% of the share price on the day of buying or selling the shares. Assuming the company record all investment income, gains, fees, and losses in one account, how much net investment income or loss was recorded during the year on its investment in the shares of XYZ Inc? O a. -$4306,263 O b. -$314,323 -$322,383 O d. -$330,442 O . -$298,204Sunland Technologies Inc. held a portfolio of shares and bonds that it accounted for using the fair value through other comprehensive income model at December 31, 2023. This was the first year that Sunland had purchased investments. In part due to Sunland's inexperience, by December 31, 2023, the market value of the portfolio had dropped $29,700 below its original cost. Sunland recorded the necessary adjustments at December 31, 2023, and was determined to hold the securities until the unrealized loss from 2023 could be recovered. By December 31, 2024, Sunland's goal of recovery had been realized and the original portfolio of shares and bonds had a fair market value $6,600 higher than the original purchase costs. Sunland's income tax rate is 30% for all years. Assume that any gains that will ultimately be realized on the sale of the shares and bonds are taxable as ordinary income when they are realized. Sunland applies IFRS. (a) Prepare the journal entries at December 31, 2023, to…
- 8.On August 20X1, ABC Company bought 10,000 shares of Z Corp at P120,000. Commission and taxes related to the acquisition were P5,000. On Dec 31, 20X1 Z Corp's share had a fair value of P14 per share. Half of the shares were sold at P15 per share. Transaction costs related to the sale were P3,500. ABC Company's investment model is to hold collect and sell.How much is the unrealized gain (loss) at FV change on Dec 31, 20X1? 20,000 15,000 10,000 0Panthers Corp. purchased 16,000 shares of Canes Corp. for $10 per share on April 1, 2022. As per IFRS 9, Panthers chose to classify this new investment as FVOCI at the time of the purchase. On November 1, 2022 Canes paid a dividend of $6 per share. At balance sheet date the market price of Canes was $9 per share. On March 1, 2023 Panthers sold all 16,000 shares for $15 per share. 1) Prepare the journal entries required under IFRS as well as those that would be required under GAAP.XYZ, Inc. owns 2,500 of the 10,000 outstanding shares of the common stock of ABC Corporation. The stock was originally purchased on January 1, Year 1 for $5 per share. During the year, ABC earned $100,000 in revenue and paid out dividends in the amount of $40,000. At December 31, Year 1, the stock is valued at $6 per share. By what amount should the Investment in ABC Corporation account increase as a result of this year's transactions? $10,000 O $25,000 O $15,000 O $2,500
- On January 1, 2022, Nichols Enterprises paid $100,000 for 6,200 shares of Elliott Electronics common stock. The ownership in Elliott Electronics is 10%. Nichols Enterprises does not have significant influence over Elliott Electronics. Elliott reported net income of $61,000 for the year ended December 31, 2022. The fair value of the Elliott stock December 31,2022 was $55 per share. What amount will be reported in the balance sheet of Nichols Enterprises for the investment in Elliott at December 31, 2022? Multiple Choice $341,000. $296,000. $281,000. $266,000.Winsor Inc. recently purchased Holiday Corp., a large midwestern home painting corporation. One of the terms of the merger was that if Holiday's income for 2020 was $110,000 or more, 10,000 additional shares would be issued to Holiday's stockholders in 2021. Holiday's income for 2019 was $120,000. Instructions a. Would the contingent shares have to be considered in Winsor's 2019 earnings per share computations? b. Assume the same facts, except that the 10,000 shares are contingent on Holiday's achieving a net income of $130,000 in 2020. Would the contingent shares have to be considered in Winsor's earnings per share computations for 2019?Tamarisk Corporation purchased 380 shares of Sherman Inc. common stock for $13,300 (Tamarisk does not have significant influence). During the year, Sherman paid a cash dividend of $3.25 per share. At year-end, Sherman stock was selling for $37.00 per share.Prepare Tamarisk'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.) (
