Dubro reported net income of $60,000 and paid dividends of $10,000 to its preferred shareholders for the year ended December 31, Year 1. How much total revenue should Moss record due to its investment in Dubro (a) $22,000 b) $20,000 2,000 c) $70,000 d) $50,000 50,000 3,000 48000

Dubro reported net income of $60,000 and paid dividends of $10,000 to its preferred shareholders for the year ended December 31, Year 1. How much total revenue should Moss record due to its investment in Dubro (a) $22,000 b) $20,000 2,000 c) $70,000 d) $50,000 50,000 3,000 48000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Monty Co. invested $920,000 in Flounder Co. for 25% of its outstanding stock. Flounder Co. pays out…

A: State the amount of Monty Co.’s share of Flounder Co.’s net income for the year: $110,000 increase…

Q: Pronghorn Co. invested $920,000 in Stellar Co. for 25% of its outstanding stock. Stellar Co. pays…

A: Net income is the total profit a company generates after deducting all expenses, taxes, and other…

Q: Malit Corporation has a total shareholders' equity of P1,000,000, including retained earnings of…

A: Stockholders are the company's business owners who invest in the company's equity. As a return on…

Q: Y-7265 Inc. reported the following data for last year: Assets Cash Accounts receivable Inventory…

A: Residual income measures the excess income or value generated by a company or investment after…

Q: The following data were taken from the year-end records of Nomura Export Company: Statement of…

A: Income Statement is a financial statement that includes revenue earned and expenses incurred during…

Q: a) Determine the amount of each distribution that is from current E&P, accumulated E&P, Return of…

A: SOLUTION;- JANUARY 01- IMAGINE NATION CORPORATION HAD ACCUMULATED EARNING&PROFITS - 50000$…

Q: Eagle Exporters purchased 80,000 of the 200,000 outstanding shares of Giant Distributors for…

A: The objective of the question is to calculate the year-end balance in the Investment in Giant…

Q: A corporation using the cost method of accounting for its investment in a 80%–owned investee, which…

A: Cost method of accounting for investment means where the investment is carry at historical cost…

Q: What is the net income for the current year? During the year, Homo sold 100,000 shares with P20 par…

A: Net income for the current year This can be arrived using the Cash flow statement as follows:

Q: Instrument Corporation has the following investment which was held throughout 2021–2022. Assume the…

A: Investment in Equity A company's investment in the company stock of another business is referred to…

Q: At the beginning of the year, Corporation A purchased 8,000 shares of Corporation B's common stock…

A: Trading Securities: Trading securities refer to the securities that are purchased by an organization…

Q: An analysis of Karman Corporation's Investment in Marketable Securities account during Year 2…

A: Statement of cash flows is one of important financial statement being prepared in business. It shows…

Q: Fill in the dollar changes caused in the Investment account and Dividend Revenue or Investment…

A: Below are the effects of the transactions by using equity method or fair value method:

Q: A corporation has a $500,000 beginning balance in Retained Earnings. Its net income for the year was…

A: The objective of the question is to calculate the ending balance in Retained Earnings for a…

Q: Question: Parent Co. invested $1,070,000 in Sub Co. for 25% of its outstanding stock. Sub Co. pays…

A: Step 1: Step 2: Step 3: Step 4:

Q: Listed below are a few events and transactions of Kodax Company. Year 1 January 2 Purchased 40,000…

A: journal is the primary book of entry

Q: During the current year, Thrasher (a calendar year, accrual basis S corporation) records the…

A: Separately Stated Items for S Corporation On Schedule K-1 of the form, the S company must also…

Q: During the current year, Sea Corp reported gross income from operations of $100,000 and operating…

A: A situation in which a company's permitted tax deductions exceed its taxable revenue within a…

Q: Answer

A: Calculating Equity Held in Investments & Dividends ReceivedA company (say company A) may make…

Q: Nataro, Incorporated, has sales of $670,000, costs of $337,000, depreciation expense of $82,000,…

A: Sales = s = $670,000Costs = c = $337,000Depreciation Expenses = d = $82,000Interest Expenses = i =…

Q: in Carter for $37 per share. Required Prepare the journal entry at December 31, Year 6, to…

A: Any investment which is having the control over the other company requires a different treatment in…

Q: Shuttleworth Co. has $100,000 of assets, financed entirely by common shares and retained earnings.…

A: The maximum dividend payable is the amount that equals the balance of retained earnings and the…

Q: Reliable Corporation had sales of $61,122,248, cost of goods sold of $24,201,696, operating expenses…

A: Given: Reliable Corporation had sales of $60,257,593, cost of goods sold of $24,092,883, operating…

Q: Cole Company owns 40% of Barnwell Inc. During the current year, Barnwell reported net income of…

A: When a company have the investment in another company, share in net income earned is added to the…

Q: Listed below are a few events and transactions of Kodax Company. Year 1 January 2 Purchased 72,000…

A: Working Note 1: Number of shares × Dividend per share= 72000 × 1.10 = $ 79200 Working Note 2 :…

Q: ST Corporation has a total shareholders' equity of P1,000,000, including retained earnings of…

A: Given, Balance in retained earnings = 175,000 Cash balance = 350,000

Q: Montana Company engaged in the following investment transactions during the current year. February 1…

A: In the context of the given question, we are required to compute the dividend income that should be…

Q: You have been given the following information for Moore's HoneyBee Corporation: a. Net sales =…

A: Income statement is one of the three important financial statements prepared by a company. The other…

Q: Red Corporation has the following transactions for the current year: Gross income from operations:…

A: As the Percentage of holding of ownership by corporate is less than 15% that's why dividend received…

Q: The liabilities of Blue Corporation are $139,400. Blue's share capital is $82,000 and its retained…

A: Total asset is the sum of all current and non-current assets which is equal to the sum of total…

Q: A. Gympa reported on its income statement a net income $647,000 for the year ended December 31…

A: Note: Since you have asked multiple question, we will solve the first question for you. If you want…

Q: Loco Ltd has sought your assistance with recording some transactions it undertook in the financial…

A: Right Issue : A right issue is an offer of equity shares in a further issue of shares by a company…

Q: The following information relates to the Gates Corporation: Net assets, end of year…

A: The question is based on the concept of Financial Accounting.

Q: Blanco Co. received dividends from its common stock investments during the year ended December 31 as…

A: Dividend is a portion of a company's profit. Which is paid to shareholders of the company based on…

Q: Jackson Moving & Storage Co. paid $120,000 for 25% of the common stock ofMcDonough Co. at the…

A: Given information is: Jackson Moving & Storage Co. paid $120,000 for 25% of the common stock of…

Q: 15. The income statement of Osborne Company reported net income of $500,000 for the year ended…

A: Answer:- Retained earnings meaning:- The amount of profit a business keeps after paying all of its…

Q: Dinesh Bhai

A: The objective of the question is to calculate the end-of-year unappropriated retained earnings for…

Q: a company has the following items: share capital-ordinaty: $920,000 treasury shares : $85,000…

A: Total equity = Share capital-ordinaty + retained earning - treasury shares

Q: Son Toco Ltd has sought your assistance with recording some transactions it undertook in the…

A: Journal Entries are very important part and backbone of accounting system.They are very essential to…

Q: Using the following information for the year ended 30 June, prepare the Retained Earnings Account…

A: Retained earnings accounts show the free reserve available for distribution of dividends and issue…

Q: TB MC Qu. 22-88 (Static) At the beginning of the year, Clampett, Incorporated, had.... At the…

A: Capital gain on the distribution=J.D.'s share of the distribution out of AAA-J.D.'s taxable basis

Question

15)
Moss Corp. owns 20 percent of Dubro Corp's preferred stock and 50 percent of its common
stock. Dubro's stock outstanding at December 31, year 1 is as follows:
10% cumulative preferred stock
$100,000
Common stock
700,000
Dubro reported net income of $60,000 and paid dividends of $10,000 to its preferred
shareholders for the year ended December 31, Year 1. How much total revenue should Moss
record due to its investment in Dubro
(a) $22,000
the 2,000
50,000
3,000
b) $20,000
c) $70,000
d) $50,000
16) Birk Co purchased 30% of Sled. Go outstanding common stock on December 31 for $200.000.
48000

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Introduction

VIEW

Step 2: Computation of the net income available and total revenue recorded by Moss

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Stock in Random Corporation is owned equally by two individual shareholders. During the current year, Random reports the following results: Income Rentals: $200,000 Dividend (from a 25% owned domestic corporation): 30,000 Taxable interest: 15,000 Short-term capital gains: 3,000 Long-term capital gains: 17,000 Expenses related to rental income Interest: $30,000 Depreciation: 32,000 Property taxes: 11,000 Other Sec. 162 expenses: 50,000 General and administrative expenses: 10,000 Dividend paid on June 30: 15,000 What changes can management make to reduce the corporation’s PHC exposure in future years?
A corporation using the equity method of accounting for its investment in a 80%–owned investee, which earned $20,000 and paid $5,000 in dividends What is the ending balance of investment on 31/12 if investment in 1/1 amount 100,000$ ? Select one: a. 112,000 b. 115,000 c. 120,000 d. 100,00
A corporation has $91,000 in total assets, $30, 500 in total liabilities, and a $18,600 credit balance in retained earnings. What is the balance in the contributed capital accounts? Multiple Choice $79, 100 $49, 100 $60,500 $41,900
During the year, Cellular Land, Inc. issued 1,500 shares of its $0.50 stated value common stock for $15 per share, and declared and paid cash dividends totaling $0.25 per share. By what amount does contributed capital increase as a result of these events? $22,500 $750 $21,750 $22,125
For Year 1, the Sacramento Corporation had beginning and ending Retained Earnings balances of $157,900 and $210,400 respectively. Also during Year 1, the corporation declared and paid cash dividends of $24,800 and issued stock dividends valued at $15,000. Total expenses were $40,416. Based on this information, what was the amount of total revenue for Year 1? Multiple Choice $145,184 $117,716 $132,716 $133,100
An investor company owns 40% of the outstanding common stock of an investee company, which allows the investor to exercise significant influence over the investee. The Equity Investment was reported at $1,050,000 as of the end of the previous year. During the year, the investor received dividends of $110,000 from the investee. The investee reports the following income statement for the year: Revenues Expenses $2,700,000 1,800,000 900,000 100,000 Comprehensive income $1,000,000 a. How much equity income should the investor report in its net income (i.e., as part of the current year income statement)? Net income Other comprehensive income $0 b. What amount should the investor report for the Equity Investment in its balance sheet at the end of the year? $0
Pronghorn Co. invested $1,070,000 in Stellar Co. for 25% of its outstanding stock. Stellar Co. pays out 30% of net income in dividene each year. Use the information in the following T-account for the investment in Stellar to answer the following questions. Investment in Stellar Co. 1,070,000 99,000 (a) How much was Pronghorn Co.'s share of Stellar Co's net income for the year? Net income 29,700 Total net income (b) What was Stellar Co's total net income for the year? 428000 Total Dividends. $ 396000 (c) What was Stellar Co's total dividends for the year? 128400
West Asset Management Inc. purchased a stock at $78.26 per share at the beginning of the year and held the stock for one year. At the end of the year, West Asset Management sold all of its holdings for this stock at $83.26 per share and received a dividend of $4.25 per share. What was West Asset Management’s total investment return for this stock in the holding period? A. 6.39% B. 15.64% C. 11.82% D. 5.43%
At the beginning of the current year, BFAR Company had Accumulated Profits of P4,000,000. During the year, the entity reported a net income of P2,000,000. The entity declared a cash dividend of P1,200,000. . Declared and issued small share dividends of 60,000 shares with a par value of P10 par when the fair market value was P20. Compute the balance of Accumulated Profits for dividends at the end of the current year. ● ●