✔a. $8,500 debit balance B1-35 Fair value adjustment for equity investments; less than 20% ownership Malia Industries owned the following equity investments as of December 31, 2013: Issuing Company Cost $75,000 $0,000 Jolliff Co. 25,000 $150.000 Polich Inc. Shaklee Corporation Fair Value $ 82,500 48,300 27,700 $158,500 Issuing Company Jolliff Co. Polich Inc. Shaklee Corporation Each of the preceding equity investments was purchased in 2013 and is less than 20% ownership of the issuing company. During 20Y4, Malia Industries did not purchase or sell any of the equity securities. The fair value of the equity securities as of December 31, 2014, was as follows: Obj.2 Cost $ 80,000 45,000 24,500 $149,500 a. What was the balance of Valuation Allowance for Equity Investments as of December 31, 20Y3? b. Journalize the adjustment to fair value for the equity investments as of December 31, 2014. c. After the adjustment in (b), what is the balance of Valuation Allowance for Equity Investments? d. Does the change in fair value of the equity securities in 20Y4 affect Malia Industries' net income? oduct lines: costs:

✔a. $8,500 debit balance B1-35 Fair value adjustment for equity investments; less than 20% ownership Malia Industries owned the following equity investments as of December 31, 2013: Issuing Company Cost $75,000 $0,000 Jolliff Co. 25,000 $150.000 Polich Inc. Shaklee Corporation Fair Value $ 82,500 48,300 27,700 $158,500 Issuing Company Jolliff Co. Polich Inc. Shaklee Corporation Each of the preceding equity investments was purchased in 2013 and is less than 20% ownership of the issuing company. During 20Y4, Malia Industries did not purchase or sell any of the equity securities. The fair value of the equity securities as of December 31, 2014, was as follows: Obj.2 Cost $ 80,000 45,000 24,500 $149,500 a. What was the balance of Valuation Allowance for Equity Investments as of December 31, 20Y3? b. Journalize the adjustment to fair value for the equity investments as of December 31, 2014. c. After the adjustment in (b), what is the balance of Valuation Allowance for Equity Investments? d. Does the change in fair value of the equity securities in 20Y4 affect Malia Industries' net income? oduct lines: costs:

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter20: Corporations: Distributions In Complete Liquidation And An Overview Of Reorganizations

Section: Chapter Questions

Problem 1BCRQ

See similar textbooks

Similar questions

What amount of investment income will Pinta record during 20y4 under the equity method of accounting? A. 12,800 B. 9,200 C. 15,600 D. 3,600
Question Armadillo Enterprises acquired the following equity investmentsat the beginning of year 1 as trading investments. Description Number of shares Market price per share Total price Finestra Company 15,000 X $25 $387,500 BVD Company 20,000 x$18 |S360,000 Market values at theend of Years 1 &2 are presented below: Market/Fair Value End of year 1 End of year 2 Finestra Company IS19 $23 BVD Company $22 $28 REQUIREMENTS: ( Prepare the journal entry to record the acquisition of theinvestments. Prepare the adjusting journal entry required at the end of year1. Armadillo Enterprises sells 15,000 shares of BVD Company for $16at the beginning of year 2. Prepare the journal entry to record thesale. Prepare the adjusting journal entry required at the end of year2. Assume that ArmadilloEnterprises now holds these investments asavailable-for-sale. Prepare the journal entry to record the acquisition of theinvestments. Prepare the adjusting journal entry required at the end of year1. Armadillo…
What will be the balance in the investment account on December 31, 20y4 under the equity method of accounting? A. 152,000 B. 150,000 C. 159,200 D. 155,600
Equity and Available-for-Sale Investments O'Brien Industries Inc. is a book publisher. The availlable-for-sale investments at cost and fair value on December 31, 20Y4, are as follows: Issuing Company Cost Fair Value Bernard Co. $16,000 $14,600 Chadwick Co. 31,500 29,500 $47,500 $44,100 The investment in Jolly Roger Co. stock represents 30% of the outstanding shares of Jolly Roger Co. The following selected transactions occurred during 20Y5: Jan. 2. Purchased $34,200 of Gozar Inc. 5%, 10-year bonds at 100. The bonds are classified as an vailable-for- sale investment. The bonds pay Interest'on June 30 and December 31. June Received interest for 6 months on the Gozar Inc. 30. bonds purchased on January 2. Oct, 1. Purchased $27,000 of Nightline Co. 5%, 10-year bonds at 100, The bonds are classified as an available-for-sale investment. The bonds pay interest on October 1 and April 1. Dividends of $7,900 are received on the Jolly Roger 9. Co, investment. Dec. 31. Jolly Roger Co. reported a…
1. Nicole Company acquires 75% of Carl John Company (CJC) for P6,000,000. The carrying and fair values of CJC's net assets at the time of acquisition are P4,500,000 and P4,900,000, respectively. Required: a. Determine the goodwill or gain on bargain purchase assuming the consideration paid includes control premium of P852,000. b. Determine the goodwill or gain on bargain purchase assuming the consideration paid excludes control premium of P138,000 and the fair value of the non-con- trolling interest is P736,500. 3. Father Corporation (FC) acquires 20% ownership interest in Son Corporation (SC) on January 1, 202X, for P1,750,000 cash, which is the fair value of the investment at that date. FC has concluded that it does not have a significant influence over SC. At the same date, the fair and carrying values of SC's identifiable assets is P5,000,000 and P3,000,000. The identifiable assets include land, which has fair and carrying values of P4,000,000 and P3,000,000, respectively. For the…
Qw.31.
The following data pertains to Traverse Co.'s investments in marketable equity securities: Select one: Oa. $55,000 gain O b. $55,000 loss c. $50,000 loss Od $50,000 gain Oe $0 Cost $150,000 Clear my choice Market value 12/31/24 $155,000 12/31/25 What amount should Traverse Co. report as unrealized holding gain/loss to be included in 2025 Comprehensive Income? $100,000
Company A acquired 37% investment in Company B for R196 000. During the first year after acquieition Company B made net income of R400 000. Using the equity accounting method, what will happen to Company A's investment in Company B? Select one: O a. It remains the same O b. It increases by R148 000 O c Ilt decreases by R196 000 O d. It decreases by R148 000
11. please help me and dont ask me to contact you for $3 charge
Current Assets P 1,375,000Property, plant and equipment 3,375,000Other non-current assets 500,000Total Assets P 5,250,000 Liabilities and Shareholders’ equity Total liabilities P 1,500,000Ordinary shares, P10 par value 4,000,000Additional paid in capital 750,000Deficit (1,000,000)Total liabilities and equity P 5,250,000The stockholders and creditors approved the quasi reorganization effective July 1,2011, to be accomplishedby a reduction in property, plant and equipment (net) P 875,000, a reduction in other non-current assets ofP375,000, and a reduction in par value from P10 to P51. Logan’s July 1 balan ce sheet after the quasi-reorganization should show total assets ofa. P 4,000,000b. P 2,500,000c. P 4,375,000d. P 3,875,0002. The balance in additional paid in capital after the quasi-reorganization on July 1 is:a. P 750,000b. P 2,000,000c. P 500,000d. P-0-3. Logan’s deficit after the quasi -reorganization on July 1,2011 should be:a. P 750,000b. P 250,000c.…
Godo
Equity Investments Fair Value Method The following information is available for the Rosen Company as of December 31, year 1 regarding its investments. 4,200 shares of Grimes Company common stock 3,750 shares of Oliver Company common stock Total of portfolio Previous fair value adjustment balance Cost $43,900 23,750 $67,650 Requirements 1. Make an adjusting entry needed for December 31, year 1. Fair Value $44,275 21,995 66,270 1,650 2. During year 2, Rosen sold its investment in Oliver Company for $22,500. Make a journal entry to record the sale. 3. At the end of year 2, the Grimes Company shares had a fair value of $45,250. Make the adjusting entry needed for December 31, year 2.