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- Colvis Corporation purchased an available-for-sale investment in 1,100 shares of Home Central shares for $30 per share. On the next balance-sheet date, Home Central shares are quoted at $34 per share As tax rate of 20%. Colvis' should report O A. unrealized gain of $4,400 in other comprehensive income. OB. realized gain of $4,400 in other comprehensive income. OC. unrealized loss of $4,400 in the income statement O D. unrealized gain of $3,520 in other comprehensive income. Click to select your answer.On January 1, 20x1, Puno Inc. acquired 80% interest in Dong Company. During 20x2, Puno and Dong reported net income of P800,000 and P340,000, respectively. Puno declared dividend of P250,000 and Dong P120,000. On the date of business combination, the fair value of inventory and equipment of Dong Company were more than its book value by P100,000 and P200,000. The equipment has a remaining life of 5 years. What is the consolidated net income attributable to Puno Inc.?Dd.91.
- Colvis Corporation purchased an available-for-sale investment in 1,100 shares of Home Central shares for S30 per share. On the next balance-sheet date, Home Central shares are quoted at $34 per share. Assume tax rate of 20%. Colvis' should report O A. unrealized gain of $4,400 in other comprehensive income. O B. realized gain of $4,400 in other comprehensive income. O C. unrealized loss of $4,400 in the income statement. O D. unrealized gain of $3,520 in other comprehensive income.P Co acquired 60% of the equity of S Co on 1 April 20X5. The statements of profit or loss of the two companies for the year ended 31 December 20X5 are set out below. P Co $ S Co Revenue Cost of sales Gross profit Administrative expenses Profit before tax Income taxes Profit for the year Note. 170,000 65,000 105,000 43,000 62,000 23,000 39,000 80,000 36,000 44,000 12,000 32,000 8,000 24,000 Retained earnings brought forward 81,000 40,000 Retained earnings carried forward 108,000 58,000 Required Prepare the consolidated statement of profit or loss and movements on retained earningsDuring the current year, Swallow Corporation, a calendar year C corporation, has the following transactions: Income from operations $660,000 Expenses from operations 760,000 Dividends received from Brown Corporation 240,000 Click here to view the dividend received deduction table. Question Content Area a. Swallow Corporation owns 12% of Brown Corporation's stock. How much is Swallow's taxable income or NOL for the year? Swallow's taxable income after deducting the dividends received deduction is $fill in the blank fd6fd0f8303e049_2 . Feedback Area Feedback The purpose of the dividends received deduction is to mitigate multiple taxation of corporate income. Without the deduction, income paid to a corporation in the form of a dividend would be taxed to the recipient corporation with no corresponding deduction to the distributing corporation. Later, when the recipient corporation paid the income to its shareholders, the income would again be subject to taxation with no corresponding…
- Oman Oil Company purchased 1,000 shares of Petroleum Company at OMR 0.100 per share as Available for Sale investment. At the end of the year, Petroleum shares fair value is at OMR 0.200 per share. How will Oman Oil record the gain or loss? a. Cr Other Comprehensive Income OMR 100 b. Dr Other Comprehensive Income OMR 100 c. Dr Loss OMR 100 d. Cr Gain OMR 100Odom Ltd purchased a 30% shareholding in Bryant Ltd on 1 Jan 20X7 for $60 000. This purchase resulted in Odom Ltd having significant influence over Bryant Ltd. Bryant's assets were recorded at fair values and its owners' equity, totalling $180 000, was: Share capital $80 000 Reserves $60 000 Retained profits $40 000 During 20X7 Bryant Ltd reported profit of $100 000, from which a dividend of $60 000 was paid. Also, during the year, Bryant revalued its assets upwards by $50 000, and sold inventories to Willams Ltd which is the subsidiary of Odom. Bryant made a profit of $4,000. Half of the inventories were still held by Willams by the year-end. Odom Ltd has an 80% equity interest in Willams Ltd. Required: Prepare journal entries for Odom Ltd to account for its investment in Bryant Ltd using the Equity Method. Use the Reclassification Method to account for the profit and dividends that Odom shares from Bryant. (Using the provided journal entry template to enter your answer;…A Ltd acquired business of B Ltd. The Assets and Liabilities of B Ltd. were taken over at an agreed value of Rs. 82,50,000 and Rs. 65,00,000 respectively. A Ltd. agreed to issue 75,000 equity shares of Rs. 10 each fully paid and 10% 50,000 Preference shares of Rs. 10 each fully paid to the equity shareholders and preference shareholders of B Ltd. respectively. The Realization expenses of Rs. 25,000 were paid by the Transferee Company. The Capital Reserve account will be credited by Rs.
- On January 2, 20Y4, Whitworth Company acquired 40% of the outstanding stock of Aloof Company for $340,000. For the year ended December 31, 20Y4, Aloof Company earned income of $180,000 and paid dividends of $10,000. On January 31 20Y5, Whitworth Company sold all of its investment in Aloof Company stock for $405,000. Journalize the entries for Whitworth Company for the purchase of the stock, the share of Aloof income, the dividends received from Aloof Company, and the sale of the Aloof Company stock. If an amount box does not require an entry, leave it blank. Jan. 2, 20Y4 - Purchase Dec. 31, 20Y4 - Income Dec. 31, 20Y4 - Dividends Jan. 31, 20Y5 - SaleIn July 1, 20X1, CBC acquired 25% of the outstanding ordinary shares of Yellow Corp at a total cost of P7,000,000. Net assets of Yellow was only P6,000,000. Yellow's depreciable assets (10-year remaining life) has a fair value of P600,000 more than the book value. Yellow earned net profit of P5,400,000 evenly throughout the year. Yellow paid cash dividends of P1,050,000 at Dec 31, 20X1. The carrying amount of the investment account at Dec 31, 20X1 would be: 7,000,000 7,397,500 7,412,500 8,087,500On July 1, 20X1, ABC acquired 25% of the outstanding ordinary shares of Yellow Corp at a total cost of P7,000,000. Net assets of Yellow was only P6,000,000. Yellow's depreciable assets (10-year remaining life) has a fair value of P600,000 more than the book value. Yellow earned net profit of P5,400,000 evenly throughout the year. Yellow paid cash dividends of P1,050,000 at Dec 31, 20X1. The carrying amount of the investment account at Dec 31, 20X1 would be: 7,000,000 7,397,500 7,412,500 8,087,500 On July 1, 20X1, ABC acquired 25% of the outstanding ordinary shares of Yellow Corp at a total cost of P7,000,000. Net assets of Yellow was only P6,000,000. Yellow's depreciable assets (10-year remaining life) has a fair value of P600,000 more than the book value. Yellow earned net profit of P5,400,000 evenly throughout the year. Yellow paid cash dividends of P1,050,000 at Dec 31, 20X1. The net share in the profit of the associate would be: 660,000 675,000 690,000 1,350,000
