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- Citrus Corporation is a calendar year 5 corporation with the following current year information: Operating loss Liabilities: Notes payable, Big Apple Bank 570,000 Notes payable, Grapefruit (individual) 380,000 On January 1 Grapefruit bought 60% of Citrus Corporation for $855,000. She then loaned Citrus Corporation $380,000 (the amount above under labilities). How much of the operating loss may Grapefruit deduct currently? Assume the excess business loss limitation does not apply. $1.425.000 $(2,280,000) $1,235,000 O 51.520,000 $1083.00024 At the beginning of the year, Fairbridge, Inc. purchased an investment in Miller Milling Mills for $500,000, representing 10% of the book value of Miller. During the year, Miller reported net income of $800,000 and pays cash dividends of $92,000. At the end of the year, the fair value of Fairbridge’s investment is $525,000. Required At what amount is the investment reported on Fairbridge’s balance sheet at year-end? What amount of income from investments does Fairbridge report? Prepare journal entries to record the transactions for Fairbridge Company.Jameson Company acquired 90% interest in Southwest Company on December 31, 20x4 for P320,000. During 20x5 Southwest had a net income of P22,000 and paid a cash dividend of P7,000. the cost method is applied that means it would give a debit balance in the Investment in Southwest Company account at the end of 20x5 of:
- a. On January 1, Yourkie Company acquired 30% of the outstanding stock of Harris Company for $300,000. DATE Debit Credit X/X b. For the year ended December 31, Harris Company earned income of $50,000. DATE Debit Credit X/X c. For the year ended December 31, Harris Company paid dividends of $8,000. DATE Debit Credit X/X d. On January 8th of the next year, Yorkshire Company sold the Harris Company stock for $301,000. DATE Debit Credit X/X i have a-c PLEASE ONLY HELP ON PART D3) On January 1, 2009, Perelli Company purchased 90,000 of the 100,000 outstanding shares of common stock of Singer Company as a long term investment. The purchase price of OMR 4,972,000 was paid in cash. At the purchase date the balance sheet of Singer company included the following: Particulars OMR 2,926,550 3,894,530 759,690 Current assets Long term assets Other assets Current Liabilities 1,557,542 Common Stock OMR 20 Par value 2,000,000 Other Contributed Capital 1,891,400 Retained earnings 1,621,000 Additional data on Singer Company for the four years following the purchase are: 2009 2010 Net Income (Loss) 2011 2012 1,997,800 476,000-179,600-323,800 Cash dividends paid, 12/30 500,000 500,000 500,000 500,000 Required: Prepare Journal entries under each of the following methods to record the purchase and all investment-related subsequent events on the books of Perelli Company for the four years, assuming that any excess of purchase price over equity acquired was attributable solely…(TCO A) Bend Inc. holds 25% of the outstanding voting shares of Calico Co. and appropriately applies the equity method of accounting. Amortization associated with this investment equals $9,000 per year. For 20X3, Calico reported earnings of $80,000 and paid cash dividends of $30,000. During 20X3, Calico acquired inventory for $57,600, which was then sold to Bend for $90,000. At the end of 20X3, Bend still held some of this inventory at its transfer price of $40,000.Required:(1) Determine the amount of intra-entity profit at the end of 20X3.(2) Determine the amount of Equity in Investee Income that Bend should have reported for 20X3.
- 26. On January 1, B company paid $2,295,000 to acquire 90,000 shares of O company's voting common stock, which represents a 30 percent investment. No allocations to goodwill or other specific accounts were made. Significant influence over O company is achieved by this acquisition, and so B company applies the equity method. O company declared a $1 per share dividend during the year and reported net income of $750,000. What is the balance in the Investment in O company account found in B company's financial records as of December 31?World-wide Financial Services, Inc. invested $21,000 to acquire 3,000 shares of Dawn Investments, Inc. on March 25. This investment represents less than 20% of the investee's voting stock. On May 15, World-wide Financial Services, Inc. sells 2,000 shares for $12,250. In the accounting equation on May 15, OA. total liabilities will decrease OB. total equity will decrease OC. total assets will remain unchanged OD. total assets will increaseColvis Corporation purchased an available-for-sale investment in 1,100 shares of Home Central shares for $30 per share. On the next balance-sheet date, Home Central shares are quoted at $34 per share As tax rate of 20%. Colvis' should report O A. unrealized gain of $4,400 in other comprehensive income. OB. realized gain of $4,400 in other comprehensive income. OC. unrealized loss of $4,400 in the income statement O D. unrealized gain of $3,520 in other comprehensive income. Click to select your answer.
- 21 )Provide Answer with calculation and explanationJuniper 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
