Need experts solution only Don't use chatgp or other AI. At December 31, 2023, Zip reports a net book value of $294,000. Akron attributed any excess of its 30 percent share of Zip's fair overbook value to its share of Zip's franchise agreements. The franchise agreements had a remaining life of 10 years at December 31,2023Required:a. Assume Akron applies the equity method to its Investment in Zip account:1. What amount of equity income should Akron report for 2024?2. On Akron's December 31, 2024, balance sheet, what amount is reported for the Investment in Zip account?b. Assume Akron uses fair-value accounting for its Investment in Zip account:1. What amount of income from its investment in Zip should Akron report for 2024?2. On Akron's December 31, 2024, balance sheet, what amount is reported for the Investment in Zip account?Answer is complete but not entirely correct.a1. Equity income$25,620a2 Investment in Zip account$111,250xb1. Reported incomeS108,800 xb2 Investment in Zip accountS143.100

Income reported under the fair-value method:Under fair-value accounting, Akron reports changes in…

Answered: At December 31, 2023, Zip reports a net…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 1MC

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Juniper Inc. acquired a 25% interest in Saturn Co. on January 1, 2021, for $260,000. During 2021, Saturn reported net income of $86,000, and paid a total cash dividend to shareholders in the amount of $16,000. Juniper uses the equity method to account for this investment. At the end of 2021, Juniper will report the following debit balance in the investment account: Question 6 options: $285,500 $260,000 $277,500 $281,500
What amount shoul be reported in 2019 profit or loss?
Assuming in 2021, the investee earned a net income of P3 million, how much must be recognized by Angelic Company as its share in the 2021 net income of the investee?
On January 1, 2017, Tenants Company acquired as a long term investment for P5,600,000 a 40% interest in an investee when the fair value of the net assets was P14,000,000. The investee reported the following results of operation: 2017 (4,000,000) 2018 (5,600,000) 2019 (6,400,000) 2020 3,200,000 What amount should be reported by tenants as investment income for the year 2020?
Please show the proper solution in a good accounting form.
. Compute for the CARRYING VALUE of the investment as of December 31, 2019.
On January 2, 2025, Cullumber Company purchased 20% of the outstanding common stock of Blossom, Inc. and subsequently used the equity method to account for the investment. During 2025, Blossom reported net income of $1380000 and distributed dividends of $600000. The ending balance in the Investment in Cullumber account at December 31, 2025 was $1020000 after applying the equity method during 2025. What purchase price did Cullumber pay for its investment in Blossom, Inc.? O $1176000 O $624000 O $1416000 O $864000
On December 31, 2020, Ryan Corp, acquired a 40% Interest in Gosling Corp. for $ 315,000. During 2021, Gosling reported net income of $200,000 and paid total cash dividends of $ 50,000. Assuming Ryan uses the equity method, at December 31. 2021, the balance in the investment account should be OA) $375,000. OB) $ 395,000. OC) $255,000. OD) $295,000.
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On January 1, 2021, an entity purchased marketable equity securities for P5,000,000. The equity securities qualify as a financial asset held for trading. The entity also paid P50,000 as commission to the broker. At year-end, the trading securities have a fair value of P6,000,000. The increase in fair value should be recorded with: a.A credit to Financial asset - FVPL, P1,000,000 b.A debit to Unrealized gain - OCI, P1,000,000 c.A debit to Financial asset - FVPL, P1,000,000 d.A debit to Unrealized gain - P/L, P1,000,000
Consider the following scenario: A newly incorporated company ("iX Nuts") engages in the selling of macadamia nuts. For the 2022 year of assessment, the following is applicable: ● The company was initially funded by a bank loan of $500k bearing interest at 5% payable annually in arrears Share capital was $1,000 paid for in cash by shareholders ● The company purchased $1m worth of macadamia nuts as stock during the year. 10% of this was owing to creditors at year end • The company had sold 80% of its stock by year end ● The company incurred packaging costs of $100,000 in converting purchased macadamia nuts into the final product that is ready for sale. This amount is considered to be part of the cost of goods sold. • The mark-up the company applied to its cost (including packaging) was 120% 75% of the company's sales were cash with the remainder being credit sales Salaries for the company for the year were $240,000 ● The only equipment purchased by the company was a packaging machine…
What amount should be recognized in 2019 Other Comprehensive Income?

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