Agee Corporation acquired a 35% interest in Trent Company on January 1, 2019, for $750,000. At that time, Trent had 1,000,000 shares of its $1 par common stock issued and outstanding. During 2019, Trent paid cash dividends of $240,000 and thereafter declared and issued a 5% common stock dividend when the fair value was $2 per share. Trent's net income for 2019 was $540,000. What is the balance in Agee’s equity investment account at the end of 2019?

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A: The accounting method of amortisation is used to distribute the cost of using a long-term asset…

Q: At the beginning of 2019, ABC Corporation had retained earnings of P 3,000,000. Throughout the year,…

A: Retained earning means amount of profit remain after all the adjustment of expense and various…

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A: Equity method is a method of accounting for investments. This method is used when investor has…

Q: Zwick Company bought 12,000 ordinary shares of Handy Corporation in January 2019. In December, Hart…

A: Dividend is the sum of money which is regularly paid by the company after a specific period of time…

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A: Treasury stock: Shares which are bought back by the company from the open market but not retired…

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A: Solution: As shares are expected to be sold with in a year, therefore investment should be…

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A: Equity method: Equity method is the accounting method used for accounting equity investments which…

Q: TSLCorporation had $180,000 of $10 par value common stock outstanding on January 1, 2020, and…

A: The question related to Accounting for Investment in Associates. The details are given.

Q: Sunland Company owns 29000 of the 50000 outstanding shares of Taylor, Inc. common stock. During…

A: Investment revenue is based on the percentage of ownership and the total revenue of the company.…

Q: Company acquires 35% of the 100,000 outstanding shares of Happy Company for P1,200,000.  Happy…

A: when company acquire  certain percentage of share in another company the company share the profit…

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Q: Ivanhoe, Inc. acquired 30% of Tamarisk Corporation's voting stock on January 1, 2021 for $ 1020000.…

A: Share in income earned in 2021 = Income earned x 30% = $406000*30% = $121,800

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A: Part 1:

Q: On December 31, 2019, Akron, Inc., purchased 5 percent of Zip Company's common shares on the oper…

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A: Sheffield Corporation purchased 37% of the Pharoah Corporation. So 37% of the net income of Pharoah…

Q: n April 1, 2019, Star Company purchased 30,000 ordinary shares of Moon Company at P180 per share, a…

A:

Q: On December 31, 2019, Akron, Inc., purchased 5 percent of Zip Company's common shares on the open…

A: For accounting purposes, both the equity method and fair-value accounting method can be used to…

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A: The stock dividend is a method of capitalizing the retained earnings account. It is distributed for…

Q: On May 1, 2020, Clarke Inc. acquired 1,250 shares of Mayson Ltd. for $75,000. This investment…

A: Acquisition refers to owning a significant part of shares in another company. It does not mean the…

Q: Matthew, Inc., owns 30 percent of the outstanding stock of Lindman Company and has the ability to…

A: Equity Method: It is a method applied when one company has 20% to 50% ownership in another company.…

Q: Matthew, Inc., owns 30 percent of the outstanding stock of Lindman Company and has the ability to…

A: A company can invest in another company. The company generally uses the equity method to account for…

Q: On December 31, 2019, Akron, Inc., purchased 5 percent of Zip Company's common shares on the open…

A: Equity method of Accounting: The equity technique is used to account for company investments. This…

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A: The consolidated financial statement refers to the financial statement prepared by the parent…

Q: Matthew, Inc., owns 30 percent of the outstanding stock of Lindman Company and has the ability to…

A: These are the accounting transactions that have a monetary impact on the financial statement of a…

Q: On July 1, 2020, Selig Company purchased for cash 30% of the outstanding common stock of Spoor…

A: Equity method: Most common accounting technique used by the organization to get the access on…

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A:

Q: On December 31, 2019, Akron, Inc., purchased 5 percent of Zip Company's common shares on the open…

A: Under the equity method, the investor initially records the investment at cost and subsequently…

Q: At the beginning of 2019, TJH Corporation had retained earnings of P 3,000,000. Throughout the year,…

A: Solution: Retained earnings balance at Dec 31, 2019 = Beginning retained earnings + Net income -…

Q: On April 1, 2019, Star Company purchased 30,000 ordinary shares of Moon Company at P180 per share, a…

A: The investment in equity shares of another company is recorded in the books of investor either by…

Q: On July 1, 2021, Fontaine Company purchased for cash 40% of the outstanding common stock of Knoblett…

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Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.