Please need help with this accounting question Dan Aykroyd Corp. was a 30% owner of Steve Martin Company, holding 212,000 shares ofMartin's common stock on December 31, 2013. The investment account had the followingentries.Investment in Martin:1/1/12 Cost$3,145,700 12/6/12 Dividend received $153,70012/31/12 Share of income 390,100 12/5/13 Dividend received 195,30012/31/13 Share of income 510,800On January 2, 2014, Aykroyd sold 148,400 shares of Martin for $3,459,900, thereby losing itssignificant influence. During the year 2014, Martin experienced the following results ofoperations and paid the following dividends to Aykroyd.Martin Income (Loss) Dividends Paid to Aykroyd2014 $304,300$51,700At December 31, 2014, the fair value of Martin shares held by Aykroyd is $1,587,000. This isthe first reporting date since the January 2 sale.a) Compute the carrying amount in Martin as of December 31, 2014 (prior to any fair valueadjustment).b) Prepare the adjusting entry on December 31, 2014, applying the fair value method toAykroyd's long-term investment in Martin Company's securities.

Step 1: Define Adjusting EntriesUnder the accrual basis of accounting, the correct revenue and…

Answered: Dan Aykroyd Corp. was a 30% owner of…

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

Chapter16: Retained Earnings And Earnings Per Share

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Aykroyd Corp. was a 30% owner of Martin Company, holding 210,000 shares of Martin's common stock on December 31, 2019. The investment account had the following entries. Investment in Martin 1/1/18 Cost $3,180,000 12/6/18 Dividend received $150,000 12/31/18 Share of income 390,000 12/5/19 Dividend received 240,000 12/31/19 Share of income 510,000 On January 2, 2020, Aykroyd sold 126,000 shares of Martin for $3,440,000, thereby losing its significant influence. During the year 2020, Martin experienced the following results of operations and paid the following dividends to Aykroyd. Martin Income (Loss) Dividends Paid to Aykroyd 2020 $300,000 $50,400 At December 31, 2020, the fair value of Martin shares held by Aykroyd is $1,570,000. This is the first reporting date since the January 2 sale. Instructions a. What effect does the January 2, 2020, transaction have upon Aykroyd's accounting treatment for its investment in…
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. Min Hyun Jing Ltd. purchased 21,600 common shares of Glastone Ltd. on January 1, 2018, when the market price was $27.50 per share. This gave Min Hyun Jing 12% of the shares issued by Glastone Ltd. Min Hyun Jing Ltd. has a December 31 year end. For the year ended December 31, 2018, Glastone reported net income of $260,000 and declared dividends of $1.10 per share on December 31. The trading price of Glastone’s shares on that date was $31.20. For the year ended December 31, 2019. Glastone reported net income of $280,000 and declared dividends of $1.15 per share on December 31. The trading price of Glastone’s shares on December 31 was 34.60. Min Hyun Jing Ltd. purchased an additional 20,000 common shares on this date. For the year ended December 31, 2020, Glastone reported a net loss of $80,000, but still declared dividends on December 31, in the amount of $0.75 per share. The trading price of Glastone’s shares on December 31, 2019 was $30.50 per share. For the year ended…

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