On January 1, 2021, Joshtin Company purchased40% of the outstanding ordinary shares of aninvestee paying P2,560,000 when the carryingamount of the net assets of the investee equaledP5,000,000. The difference was attributed toequipment which had a carrying amount ofP1,200,000 and a fair market value ofP2,000,000, and to building with a carryingamount of P1,000,000 and a fair market value ofP1,600,000. The remaining useful life of theequipment and building was 4 years and 12years, respectively. During 2021, the investeereported net income of P1,600,000 and paiddividends of P1,000,000. What is the carryingamount of the investment in associate onDecember 31, 2021? *a. 2,550,000b. 2,700,000c. 2,800,000d. 3,050,000

Given in the question: On January 1, 2021, Joshtin Company has purchased 40% of the outstanding…

Answered: dividends of P1,000,000. What is the…

Business

Accounting

dividends of P1,000,000. What is the carrying amount of the investment in associate on December 31, 2021? *

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Albay Company had the following shareholders' equity on Problem 23-16 (PHILCPA Adapted) January 1, 2020: Preference share capital, P100 par, 10% cumulative Ordinary share capital, no par, P5 stated value Share premium Retained earnings Treasury ordinary shares 2,000,000 5,150,000 3,500,000 4,000,000 400,000 On January 15, 2020, the entity formally retired all the 30,000 treasury shares. The treasury shares were originally issued at P10 per share. The entity owned 10,000 shares of Digos Company purchased for P800,000. The Digos shares were included in noncurrent equity securities. On December 31, 2020, the entity declared a dividend in kind of one share of Digos for every hundred ordinary shares held by a shareholder. The fair value of the Digos share is P90 on December 31, 2020. The dividend in kind was distributed on March 15, 2021 when the fair value of Digos share is P95. On December 31, 2020, the entity declared the yearly cash dividend on preference share, payable on January 15,…
The equity section of a company for the last 2 years shows the following: - Share capital 885 M Euros in 2020 (777 M euros in 2019) - Share premium 3,555 M euros in 2020 (2,941 M euros in 2019) - Retained earnings 6,241 M euros in 2020 (5,293 M euros is 2019) - Treasury shares 82 M euros in 2020 (50 M euros in 2019) Assuming the par value of the company shares is 2 euros. Which of the following statement is correct regarding 2020? do calculation please The company has issued 54 million new shares The company has issued 108 million new shares The company has issued 722 million new shares The company has issued 361 million new shares
Please help prepare Financial position and comprehensive income statement
Below is a company’s stock quote on March 1, 2021: Name Close Net Chg Div P/E DSD 20.25 -.15 1.05 16 What is the company’s earnings per share (EPS)?
Subject:
WHAT IS THE TOTAL RESERVES 2021?
a. record the adjusting entry as of November 30, 2020 B. At what value will Co. a report its investment in foof Co. Stocks on its Novemver 30, 2020 balance sheet
How do I determine how the firm is financing investment in assets? Based on Lowe's 2019 balance sheet Long-term Debt – $16,768mil Common Stock, $.50 par value $381mil Preferred Stock, $5 par value, none issued What would this mean to an investor?
EXPLAIN THE RESULT OF EACH ITEMS
XYZ stock price and dividend history are as follows: Dividend Paid at Year-End $5 Year 2018 2019 2020 2021 Beginning-of- Year Price $ 130 144 120 125 An investor buys six shares of XYZ at the beginning of 2018, buys another three shares at the beginning of 2019, sells one share at the beginning of 2020, and sells all eight remaining shares at the beginning of 2021. Required: a. What are the arithmetic and geometric average time-weighted rates of return for the investor? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Arithmetic time-weighted average returns Geometric time-weighted average returns 5 5 5 Date b-1. Prepare a chart of cash flows for the four dates corresponding to the turns of the year for January 1, 2018, to January 1, 2021. (Negative amounts should be indicated by a minus sign.) Cash Flow % %
Notes relating to the above Statements (pictures): i. The market value of the shares of the business at the end of the reporting period was £3.00 for 2019 and £2.00 for 2020. ii. All sales and purchases are made on credit. iii. At 1 April 2018, the trade receivables stood at £250 million and the trade payables at £210 million. iv. A dividend of £40 million had been paid to the shareholders in respect of each of the years. v. The business employed 14,000 staff at 31 March 2019 and 18,628 at 31 March 2020. vi. The business expanded its capacity during 2020 by setting up a new warehouse and distribution centre. vii. At 1 April 2018, the total of equity stood at £450 million and the total of equity and non-current liabilities stood at £650 million. Required Using the information from the given financial statements, statement of financial position (balance sheets) and income statement (profit & loss accounts) in page 3, calculate and interpret the following ratios for XYZ Plc for the…
Comment on the movements in the ratios over two years and adequacy of the level of gearing and interest cover For 2021: Total Debt = $m 9,194 Stockholders' Equity = $m 5,000 Gearing Ratio = Total Debt ÷ Stockholders' Equity = $m 9,194 ÷ $m 5,000 = 1.84 EBIT = $m 2,500 ( $m 2,400 + $m 100) Interest expense / Finance costs = $m 400 Interest Coverage Ratio = EBIT ÷ Interest expense /Finance costs = $m 2,500 ÷ $m 400 = 6.25 For 2022 : Total Debt = $m 8,685 Stockholders' Equity = $m 5,045 Gearing Ratio = Total Debt ÷ Stockholders' Equity = $m 8,685 ÷ $m 5,045 = 1.72 EBIT = $m 1,730 ( $m 1,700 + $m 30) Interest expense / Finance costs = $m 580 Interest Coverage Ratio = EBIT = Interest expense /Finance costs = $m 1,730 ÷ $m 580 = 2.98