Check my wFizer Pharmaceutical paid $82 million on January 2, 2024, for 2 milion shares of Came Cosmetics common stack. Theinvestment represents a 20% interest in the net assets of Carne and gave Fizer the ability to exercise significant influence overCame's operations Fizer received dividends of $1 per share on December 21 2024, and Came reportedt not ancome of $45milion for the year ended December 31, 2024 The fair value of Came's common stock at December 31, 2024 was $32.50 pershareThe book value of Came's net assets was $210 milionThe fair value of Carne's depreciable assets waceeded their book value by $35 milion. These ageremaining useful life of seven yearsThe remainder of the excess of the cost of the investment over the book value of net dat purchased was able togoodwillRequiredComplete the table below and prepare the appropriate journal entries wated to the investment during 2024Complete this question by entering your answers in the tabs below.CalatCon the table belo

Accounting question about the investment by Fizer Pharmaceutical in Carne Cosmetics common…

Answered: Check my w Fizer Pharmaceutical paid…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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On January 4, 2024, Runyan Bakery paid $334 million for 10 million shares of Lavery Labeling Company common stock. The investment represents a 30% interest in the net assets of Lavery and gave Runyan the ability to exercise significant influence over Lavery's operations. Runyan received dividends of $4.00 per share on December 15, 2024, and Lavery reported net income of $200 million for the year ended December 31, 2024. The market value of Lavery's common stock at December 31, 2024, was $31 per share. On the purchase date, the book value of Lavery's identifiable net assets was $850 million and: a. The fair value of Lavery's depreciable assets, with an average remaining useful life of nine years, exceeded their book value by $90 million. b. The remainder of the excess of the cost of the investment over the book value of net assets purchased was attributable to goodwill. Required: 1. Prepare all appropriate journal entries related to the investment during 2024, assuming Runyan accounts…
Cardo co purchases the net assets of allana co by issuing 50000 shares of their 20 par value shares with a fair value of 20 per share , entered into mortgage loan of 350000 and paying dorect cost, indirect cost, and stock issue cost 75000; 50000; 20000 respectively. Determine the total amount of stockholders equity
Choose the correct answer: Westlife Company acquired on July 1, 2020, 30,000 ordinary shares of Lucy Company for P40 per share. Lucy has 100,000 outstanding ordinary shares on that date. Lucy’s net income for the year ended December 31, 2020 was P2,400,000, earned evenly throughout the year. Lucy paid dividends in the amount of P800,000 to its ordinary shareholders at December 31, 2020. What amount of income from the investment should Westlife report in its 2020 income statement? Remember the shares were acquired July 1 so right over the associate starts only from July 1. P720,000 c. P240,000 P360,000 d. P120,000
Use the info below to answer the following questions: On January 2, 2021, Pirate, Inc. purchased a 30% interest in Tee Corp. for $3, 000, 000 cash. During 2021, Tee's net income was S3, 500, 000 and it paid dividends of S1, 000, 000. Pirate's 2021 income from Tee was: Pirate's Equity Investment balance in Tee at December 31, 2021 will be:
Zebest Company acquired a 25% interest in Tyco Company on December 31, 2024 for $1,500,000 and elected the fair value option. During 2025, Tyco reported net income of $400,000 and paid total cash dividends of $100,000. The fair value of the investment at December 31, 2024 was $1,625,000 What value would Zebest report on its 2024 balance sheet Equity Investments-Tyco account?
Milk Tea Company bought 1,000 shares of Macha Corporation as equity investments on January 10, 2022 for P237,300, which include P2,300 as brokerage fee. The investments are classified as equity investments at fair value through profit or loss. On December 28, 2021, a P25 peso dividend per share of Macha Corporation had been declared to be paid on March 31, 2022. There were no other transactions in 2022 affecting the investment. At what amount should Milk Tea Company record the investment in equity securities at January 10, 2022? P235,000 P212,300 P237,300 P210,000
On May 1, 2020, Clarke Inc. acquired 1,250 shares of Mayson Ltd. for $75,000. This investment represents a 16% interest in Mayson Ltd. and Clark Inc. has significant influence. On December 31, 2020, Mayon Ltd. paid a $35,000 dividend to its shareholders. At April 30, 2021 Mayson Ltd.'s shares were valued at $30 per share and Mayson Ltd. reported net income of $27,000 for the year. On June 15, 2021, Clarke Inc. sold the shares for $37,000. Both Clarke Inc. and Mayson Ltd. have April 30, 2021 year-ends. Prepare dated journal entries for the investment on the acquiring company's books and from acquisition to disposal. Ignore income taxes. Journal entry descriptions are optional.
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On 1 July 2019, Quick Buck Ltd took control of the assets and liabilities of Eldorado Ltd. Quick Buck Ltdissued 80,000 shares having a fair value of $2.40 per share in exchange for the net assets of EldoradoLtd. The costs of issuing the shares by Quick Buck Ltd cost $1,600.At this date the statement of financial position of Eldorado Ltd was as follows: c Carrying amount Fair valueMachinery $40,000 $67,000Fixtures & fittings 60,000 68,000Vehicles 35,000 35,000 Current assets 10,000 12,000Current liabilities (16,000) (18,000)Total net assets…
S16-9 On January 6, 2023, Ling Corp. paid $5,000,000 for its 40 percent investment in True World Inc. Assume that on December 31 that same year, True World earned net income of $1,800,000 and paid cash dividends of $800,000. What method should Ling Corp. use to account for the investment in True World Inc.? Give your reason. Ignore any brokerage commission expenses. Post to the Investment in True World Inc. Common Shares T- account. What is its balance after all the transactions are posted? Journalize these three transactions on the books of Ling Corp. Include an explanation for each entry.
On January 1, 2021, Kendall Inc. purchased 25,000 shares of Kylie Company at a cost per share of P100. Kylie Company's outstanding ordinary shares are 100,000. Kendall is part of Kylie's board of directors. During the year, Kylie Company paid cash dividends of P700,000 and had a net income of P2,500,000. How much is the Investment in associate on December 31, 2021?
On January 1, 2025, Riverbed Co. purchased 23,000 shares (a 10% interest) in Elton John Corp. for $1.510.000. At the time, the book value and the fair value of John's net assets were $12,900,000 On July 1, 2026. Riverbed paid $2.760.000 for 46,000 additional shares of John common stock, which represented a 20% investment in John. As a result of this transaction, Riverbed owns 30% of John and can exercise significant influence over John's operating and financial policies John reported the following net income and declared and paid the following dividends Dividend per Share None Year ended 12/31/25 Six months ended 6/30/26 Six months ended 12/31/26 Net Income $680,000 $20,000 Investment in Eton John Corp 888.000 None $1.50 Determine the ending balance that Riverbed Co should report as its investment in John Corps at the end of 2026

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