Assume that on Dec. 31, 2014, Paul's Investment in Saint Account has a balance of $ 438,000. Paul's 80 % interest in Saint has a fair value of S 468,000. On January 1, 2015, Paul sells all of its Saint shares for $ 450,000. What is the gain/loss on sale? OAS 15000 Loss OBS 12000 Gain OCS 33000 Loss OD.S 33000 Gain

Assume that on Dec. 31, 2014, Paul's Investment in Saint Account has a balance of $ 438,000. Paul's 80 % interest in Saint has a fair value of S 468,000. On January 1, 2015, Paul sells all of its Saint shares for $ 450,000. What is the gain/loss on sale? OAS 15000 Loss OBS 12000 Gain OCS 33000 Loss OD.S 33000 Gain

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Parent acquires 80% of Sub for $170,000 on December 31, 2014. In 2015 Sub has net income of $140,000 and paid dividends of $70.000. Amortization of excess fair value over book value for the year was $43,750. What is the Investment in Sub account balance as of December 31, 2015.
Sew Corporation's stockholders' equity at December 31, 2011 was $4,000,000 in total On January 3, 2012, Sew sells 10,000 shares of previously unissued $100 par common stock to Pan Corporation for $1,400,000. On this date the recorded book values of Sew's assets and liabilities equal their fair values. Goodwill from Pan's investment is Sew at the date of purchase is: $0 $300,000 $50,000 $400,000
es On March 31, 2024, Chow Brothers, Incorporated, bought 6% of KT Manufacturing's capital stock for $54.8 million. KT's net income for the year ended December 31, 2024, was $81.6 million. The fair value of the shares held by Chow was $38.2 million at December 31, 2024. KT did not declare or pay a dividend during 2024. Required: 1. Prepare all appropriate journal entries related to the investment during 2024. 2. Assume that Chow sold the stock on January 20, 2025, for $31.6 million. Prepare the journal entries to record the sale. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare all appropriate journal entries related to the investment during 2024. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5), View transaction list Journal entry worksheet 1 2 3 Record the entry for…
Company X acquires 100 percent of the voting shares of Company Y for $275,000 on December 31, 2008. The fair value of the net assets of Company X at the date of acquisition was $300,000. This is an example of a(n): Select one: a. extraordinary loss b. revaluation adjustment c. bargain purchase d. positive differential
33. L Company purchased the following securities during 2013: Classification Cost Market value 12/31/2013 Security A Security B Trading Trading 900,000 1,000,000 1,000,000 1,600,000 On July 31, 2014, the entity sold all of the shares of Security B for P1,100,000. On December 31, 2014, the shares of Security A had a market value of P600,000. No other activity occurred during 2014 in relation to the trading security portfolio. What is the gain or loss on the sale of Security B on July 31, 2014? a. 500,000 gain b. 500,000 loss c. 100,000 gain d. 100,000 loss
How would I report the following dividends on the form 8949 and schedule D On January 3, 2021, Dave repurchased the exact number of shares he sold on December 29, 2020. Purchased Sold Sale Price Basis Gain/Loss Dell (held 9 month) 12/01/19 09/01/20 $ 15,000 $ 9,000 $ 6,000 Pepsi (held 4 month) 09/01/20 12/29/20 17,000 25,000 (8,000) IBM (held 30 month) 06/05/18 12/05/20 38,000 20,000 18,000
Z acquired a 30% interest in K Cor. K declared $200,000 dividends in 2016 and reported its income for $500,000. T's Investment in K account for 2016 should increase by $---- O a. $90000 O b. $150000 Oc $300000 Od. $200000
Please Solve In 10mins
M13 A B D 1 2 E17.16 (LO 2, 3) (Fair Value and Equity Method Compared) Jaycie Phelps Inc. acquired 20% of 3 the outstanding common stock of Theresa Kulikowski Inc. on December 31, 2020. The purchase price 4 was $1,200,000 for 50,000 shares. Kulikowski Inc. declared and paid an $0.85 per share cash dividend on 5 June 30 and on December 31, 2021. Kulikowski reported net income of $730,000 for 2021. The fair value 6 of Kulikowski's stock was $27 per share at December 31, 2021. 8 Instructions 9 a. Prepare the journal entries for Jaycie Phelps Inc. for 2020 and 2021, assuming that Phelps cannot 10 exercise significant influence over Kulikowski. 11 b. Prepare the journal entries for Jaycie Phelps Inc. for 2020 and 2021, assuming that Phelps can exer- 12 cise significant influence over Kulikowski. 13 C. At what amount is the investment in securities reported on the balance sheet under each of these methods 14 at December 31, 2021? What is the total net income reported in 2021 under each of…
Ch TB MC Qu. 01-16 Borgin Inc, owns 30% of the outstanding... Borgin Inc. owns 30% of the outstanding voting common stock of Burkes Co. and has the ability to significantly influence the investee's operations and decision-making. On January 1, 2021, the balance in the Investment in Burkes Co. account was $402,000. Amortization associated with the purchase of this investment is $8,000 per year. During 2021, Burkes earned income of $108,000 and paid cash dividends of $36,000. Previously in 2020, Burkes had sold inventory costing $28,800 to Borgin for $48,000. All but 25% of this merchandise was consumed by Borgin during 2020. The remainder wos used during the first few weeks of 2021. Additional sales were made to Borgin in 2021; inventory costing $33,600 was transferred at a price of $60,000. Oor this total, 40% was not consumed until 2022. What was the balance in the Investment in Burkes Co. account at the end of 2021?
On June 30, 2019, Cassiopeia purchased the following shares at a total cost of P3,600,000: Aquila Grus Indus Number of shares 50,000 100,000 200,000 Total fair value 450,000 1,350,000 1,800,000 At the end of the year, the fair values of the shares are as follows: Aquila Grus Indus P12 16 6 On June 30, 2020, Cassiopeia sold half of its holdings in Indus at P7.50 per share. Prepare the journal entries in the books of Cassiopeia given the following independent assumptions: 1. SEPARATE JOURNAL ENTRIES for shares classified as Financial Asset at Fair Value through Profit or Loss (P/L) & Fair Value through Other Comprehensive Income (OCI
On March 1, 2024, Garden Company invests $13,000 in Firs, Inc. stock. Firs pays Garden a $200 dividend on August 1, 2024. Garden sells the Firs' stock on August 31, 2024, for $13,350. Assume the investment is categorized as a short-term equity investment and Garden Company does not have significant influence over Firs, Inc 1. Journalize the transactions for Garden's investment in Firs' stock. 2. What was the net effect of the investment on Garden's net income for the year ended December 31, 2024