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

Section: Chapter Questions

Problem 9P

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Accounting
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The outstanding share capital of Sheng Inc. includes 43,000 shares of $9.60 non-cumulative preferred and 78,000 common shares, all issued during the first year of operations. During its first four years of operations, the corporation declared and paid the following amounts in dividends. Total Dividends Declared Year 2017 $ 2018 2019 2020 2017 2018 2019 2020 0 440,000 1,058,000 440,000 Required: Determine the total dividends paid in each year to each class of shareholders under the assumption that the preferred shares are non-cumulative. Also determine the total dividends paid to each class over the four years. (Leave no cells blank, enter "0" where ever required.) Common Total Dividends Preferred Total for four years
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