At the beginning of the current year, WWW Company purchased 10% of RRR Company's outstanding ordinary shares for P4,000,000. WWW Company is the largest single shareholder in RRR and WWW's officers are a majority of RRR's board of directors. The investee reported net income of P5,000,000 for the current year and paid cash dividend of P1,500,000. What amount should be reported as investment in RRR Company at year-end?

Q: On January 2, 2020, Tuao Company purchased 10% of Abulug Company's outstanding ordinary shares for…

A: GIVEN   On January 2, 2020, Tuao Company purchased 10% of Abulug Company's outstanding ordinary…

Q: On January 1, year 1, DEF Company purchased 80% of the stock of UVW for P4,000,000 cash. Prior to…

A: GIVEN   On January 1, year 1, DEF Company purchased 80% of the stock of UVW for P4,000,000 cash.…

Q: balance in Tuao’s investment in Abulug Company

A: Balance of investment in other entity = Cost of investment + (Profit of the other entity *…

Q: On January 2, 2020, Tuao Company purchased 10% of Abulug Company's outstanding ordinary shares for…

A: The investment in shares of another company gets increased by net profit and gets decreased by…

Q: On January 1, year 1, ABC Company purchased 80% of the stock of XYZ for P4,000,000 cash. Prior to…

A: GIVEN   On January 1, year 1, ABC Company purchased 80% of the stock of XYZ for P4,000,000 cash.…

Q: What amount should Eduardo report as total revenue related to its investment in Letecia Company for…

A: 1. Preference shares have first right to get Dividend.  After that            comes ordinary shares.…

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A: When investments are made in business less than 20% and also no significant influence was acquired,…

Q: Malaki Corporation has an investment in 5,000 shares of Wallace Company ordinary shares with a cost…

A: Due to issue of dividend  the balance  in retained earnings will decrease

Q: Presented below are two independent situations: (a) Sandhill Inc. acquired 10% of the 420,000…

A: Whenever a company invests in another company and as a result, obtains significant influence in the…

Q: A Corporation purchased a 70% interest in B Company on January 1, 2013 for P140,000, when B’s…

A: B total income = P55000 A’ s share = 70% x P55000 = P38500

Q: Wyatt Company acquired 30% interest in the voting stock of Staples Inc. for $650,000. During the…

A: ANSWER:- $ 54,000 is correct answer $54,000 amount will wyatt company report on its income statement…

Q: Sunshine Ltd purchased 25% of the shares of Relight Ltd on 1 January 20X2 for Sunshine Ltd having…

A: As per the given information: Shares purchased by Sunshine ltd - 25% for cash of $300,000Additional…

Q: Ablue Company had 50,000 shares of P100 par authorized. During 2004, first year of operations, the…

A: The contributed capital includes the total capital value from the issuance of common stock and…

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A: Operating activity refers to the normal business activity of a company in which transaction like…

Q: M.T. Glass, Inc. purchased the following investments on January 1, 2028: 1. 21,000 shares…

A: Introduction:If an investor company makes an investment between 20 to 50% in the investee company…

Q: On January 1, 2021, Belgium Company purchased 20% of Russia Company's outstanding ordinary shares…

A: Since the Company B has acquired 20% of outstanding shares in company R and is the single largest…

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A: Journal entries are the transactions which are reported in the books of accounts primarily. It is…

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A: Minority interests are between the range of twenty percent and thirty percent of the equity of the…

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A: IFRS 10 CONSOLIDATION FINANCIAL STATEMENTS   The accounts of two companies need to be consolidated…

Q: How much is the investment income for the current year?

A: Net income refers to the income earned after deducting the company’s expenditures from the company’s…

Q: Ella Ltd purchased 20% of the shares of Monica Ltd on 1 January 20X2. This purchase resulted in Ella…

A: Solution:                                          JOURNAL ENTRIES a) Using Equity Method Date…

Q: Wildhorse Corporation purchased for $316,000 a 30% interest in Murphy, Inc. This investment enables…

A: When a company acquires more than 20% stock of another company and have significant influence over…

Q: what amount should Noah report as investment in Sabina?

A: IAS 28 specifies an investor is said to have significant influence over the investee if the investor…

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: What is the Total expenses to be recoded by Patrick Corp on December 31, 20x1?

A: Solution:- Calculation of Consideration paid :- Particulars Amount Cash 1,500,000 Ordinary…

Q: On January 1, year 1, ABC Company purchased 80% of the stock of XYZ for P4,000,000 cash. Prior to…

A: GIVEN   On January 1, year 1, ABC Company purchased 80% of the stock of XYZ for P4,000,000 cash.…

Q: On 1/07/2022, Kit Kat limited acquired all the shares in Mars Litd, the shares came with the…

A: Solution Goodwill is an intangible assets which is purchased by one company from another. As per…

Q: Company A paid $85 million on January 2 of the current year for 4 million shares of Company B's…

A: Journal Entry is the primary step in recording the transactions in the books of accounts.The…

Q: Inconsiderate Company acquired 100,000 ordinary shares of Channel Company and 300,000 ordinary…

A: Income from investments refers to the income money received as dividend, interest payments, capital…

Q: (TCO A) Bend Inc. holds 25% of the outstanding voting shares of Calico Co. and appropriately applies…

A: Intra entity profit refers to the profit received from an intra entity transaction.

Q: Strickland Industries purchased a 30% interest in Spartan, Inc. for P600,000. Spartan, Inc. has…

A: Investments is one of the important asset of the business. It can be by purchasing shares, bonds or…

Q: ring the year, Feather reported net income of $700,000 and declared and paid d e investment's fair…

A: Statement of financial position refers to the statement which is prepared by company in order to…

Q: ordinary shares of Universal Company for P9,000,000. At the time of purchase, Universal Company had…

A: Fair value through profit or loss (FVPL) means that at each balance sheet date the asset or…

Q: Turner Company owns 10% of the outstanding shares of ICA Company. Turner has a choice to measure…

A: The effect of ICA's $5 million cash dividend on Turner's 2022 financial statements depends on the…

Q: Green Corp. owns 30% of the outstanding common stock and 100% of the outstanding noncumulative…

A: Gree Corp:-Equity Method:- Hold = 30% of common stock  and = 100% of noncumulative Preferred stock…

Q: Strickland Industries purchased a 30% interest in Spartan, Inc. for P600,000. Spartan, Inc. has…

A: For significant influence, the investment in shares of other company gets increased with percentage…

Q: January 1, 20x1, Peter Corp. acquired the identifiable net assets of Ella Corp. by paying cash of…

A: Consideration is an amount that the company will pay to the acquirer company at the time of…

Q: JJJ Co. was incorporated on January 1, 20x1. The following were the transactions during the year:…

A: ANSWER   JJJ Co was incorporation on January 1, 20x1. The following were the transactions during the…

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.