Choose the correct. McKinley, Inc., owns 100 percent of Jackson Company’s 45,000 voting shares. On June 30, McKinley’s internal accounting records show a $192,000 equity method adjusted balance for its investment in Jackson. McKinley sells 15,000 of its Jackson shares on the open market for $80,000 on June 30. How should McKinley record the excess of the sale proceeds over its carrying amount for the shares?a. Reduce goodwill by $64,000.b. Recognize a gain on sale for $16,000.c. Increase its additional paid-in capital by $16,000.d. Recognize a revaluation gain on its remaining shares of $48,000.

Q: Check my work mode: This shows what is correct or incorrect for the work you have completed so far.…

A: Associate Company:An associate company, is a corporation in which a parent company possesses an…

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, Poitras Ltée, a public company, purchases 20% of Blue Corporation's common shares for…

A: Showing formulas:

Q: 1 October 2020, OXIOM purchased 200,000 equity share in Eban, a key supplier. Eban’s shares are…

A: Equity Share - An equity share, sometimes referred to as an ordinary share, is a form of fractional…

Q: On January 1, Belleville Company paid $1,710,000 to acquire 57,000 shares of O'Fallon's voting…

A: When one company is holding shares in another company from 20% to 50% , then it is called as…

Q: On 8 August 20x3, alpha Ltd acquired 20000 shares in Beta Ltd (Beta) that gave alpha control over…

A: Fair value is defined as the value which each item fetches when it is traded in the marketplace. It…

Q: Franklin Co. owns 40% of the voting common stock of Academic Services Inc. Franklin uses the equity…

A: Formula: Balance in the investment account as of December 31, 2021 = Beginning investment balance +…

Q: Oolong’s Corporation has an investment in 10,000 shares of Chiatze Company ordinary share with a…

A: Date 25-May 15-Jun 31-Jul Event On declaration of dividend On the record date On…

Q: Sunland Corporation purchased 400 shares of Sherman Inc. common stock for $12,400 (Sunland does not…

A: Fair value through Other Comprehensive Income (FVOCI) is an accounting method used to classify…

Q: On January 1, Poitras Ltée, a public company, purchases 20% of Riverbed Corporation's common shares…

A: Journal entries are the primary reporting of the business transactions in the books of accounts.…

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: before the transaction, Richard, Inc. have 20,000 outstanding shares. Richard issued  12,000 shares…

A: The business combination is a transaction by which the buyer acquires the control of the seller's…

Q: Sara Co acquires 75% of the shares of Hannah Co on 1 June 20X7, when Hannah Co's reserves were…

A: The cost of investment includes the cash transferred, Fair value of assets transferred, fair value…

Q: On December 31, 2020, DEF, Inc. holds 100,000 shares of Devin Company with market value of…

A:

Q: If ABC Co purchases the net assets of XYZ Co by issuing 50,000 shares of their P20 par value…

A:

Q: Jubilee, Inc., owns 30 percent of JPW Company and applies the equity method. During the current…

A: Inventory is one of the important current asset of the business. Cost of goods sold is deducted from…

Q: Jubilee, Inc., owns 30 percent of JPW Company and applies the equity method. During the current…

A: Gross Profit Percentage = (Sales - Cost ) / Sales = ($133,000 - $93,100) / $133,000 = 30%

Q: Ayayai Corporation purchased 300 common shares of Sigma Inc. for trading purposes for $9,300 on…

A: Purchases of 300 shares for $9300 i.e.$31per share

Q: 1 On January 1, Belleville Company paid $1,710,000 to acquire 57,000 shares of O'Fallon's voting…

A: To calculate ending balance of investment account, first beginning balance is considered. Then,…

Q: Yonkers Inc. purchases 300,000 of the 1,200,000 shares of Vottle for $1,850,000 on February 9.…

A: The investment in vottle is more than 30% and qualify as equity method investment and the journal…

Q: These questions are based on the following information and should be viewed as independent…

A: The amount of money that a business gets from shareholders over and above the par value of its…

Q: Gant Company purchased 20 percent of the outstanding shares of Temp Company for $70,000 on January…

A: The accounting approach of treating investments in affiliated corporations is known as the equity…

Q: rted by Alakdan Co. ii. The total assets of Alakdan Co. after the business combination. iii. The…

A: Goodwill is referred to as amount which exceeds the fair value of assets and liabilities assumed by…

Q: 31. The comp

A: FV-NI i.e Fair value through net income, under this approach any changes in the fair value of…

Q: purchased 2,000 shares of Potter Wholesale for $35 per share. Based on the percentage of outstanding…

A: The realised gain or loss is the difference between the Fair Value of Stock and Sale Value of Stock…

Q: Prepare entries to record both the acquisition and the sale of these shares. 1. On May 20, Montero…

A: The objective of the question is to prepare the journal entries for the acquisition and sale of…

Q: Ac. Eight years ago, SW purchased 1,900 shares of Delta stock. On May 20 of the current year, it…

A: Wash sale rule states that you can’t claim a deduction for the loss occurred, if the difference…

Q: 15. On January 1, 20x5, Paz acquired 80% of Shey outstanding ordinary shares for P950,000. Paz uses…

A: Consolidated assets mean assets of holding and subsidiary companies on balance sheet date. It…

Q: On January 1, 20X8, Ball Corporation purchased shares of Leftwich Company common Stock. Assume the…

A: A balance sheet gives you a brief snapshot of the financial state of your business at any set…

Q: Of the amount paid for the investment, how much is attributable to goodwill? How much is the…

A: Acquisition costs are the sum of the costs incurred by the business in acquiring a new client or…

Q: n January 1, Puckett Company paid $1.28 million for 64,000 shares of Harrison’s voting common stock,…

A: As per IAS 28, if any investment is made in associates and joint ventures, the equity method should…

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: Marin Inc., a public company, owns 20% of Dong Ltd's common shares for strategic purposes. The…

A: Significant influence depends upon the ability to engage in a company's operational and financial…

Q: Packard Inc. is a public company. On January 1, 2020 Packard Inc. purchased 10,000 common shares…

A:

Q: On January 1, 2020, Fisher Corporation purchased 40 percent (82,000 shares) of the common stock of…

A: Calculation of the Dividend=Dividend incomex Percentage of share purchase=96000x40%=38400Net income…

Q: Pete Inc. purchased 80% of Paul Co. for $270,000 when Paul's book value was $300,000. Paul has…

A: Book value is the sum of the amounts of all the items in the shareholders' equity section on a…

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: 26. On January 1, B company paid $2,295,000 to acquire 90,000 shares of O company's voting common…

A: company "B" paid $2295000 to acquire 90000 shares of "O" company which represents 30% share.…

Q: Concord Corporation purchased 360 shares of Sherman Inc. common stock for $11,900 (Concord does not…

A: Fair Value through Other Comprehensive Income (FVOCI) is an accounting method used to classify…

Q: Indigo Corporation purchased 370 shares of Sherman Inc. common stock for $13,100 (Indigo does not…

A: fair value is an important concept in accounting and finance, as it helps to provide a more accurate…

Q: Marigold Corporation purchased 630 common shares of Ditch Inc. for $12,900 on February 21. Marigold…

A: The journal entries are prepared to record the transactions on regular basis . The investment in…

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.