Duringthe most recent year, Smither Travelers Co. bought 3,400 shares of German Corporation common stock at $37, 630 shares of British Corporation stock at $47.00, and 1,400 shares of MilanCorporation stock at $76. At December 31, Hoover’s Online reports German stock at $28.88,British at $49.00, and Milan at $69.25. Smither Travelers does not own more than 10% of theoutstanding stock in any of its investments.Requirements1. Determine the cost and the fair value of the long-term investment portfolio at December 31.2. Record Smither Travelers’ adjusting entry at December 31.3. What would Smither Travelers report on its income statement and balance sheet at year-endfor the information given? Ignore income taxes

Q: During the year just ended, Spriha’s distribution had pretax earnings from operations of $2,290,000.…

A: After-tax return is the profit made on investment post subtracting the amount of tax. The tax is…

Q: Mike Ltd purchased the outstanding voting shares of Sam Ltd at the beginning of 2009 for $387,000.…

A: Acquisition refers to the acquisition of common shares and voting rights in one company by another…

Q: u need to undertake at least 5 adjusting entries. The adjusting entry amounts and items recorded…

A: Adjusting Entries are the transactions, the effect of which is carried forward to the next period.…

Q: On July 15, 2021, Max Co. acquired 25,000 shares of Chicken Co. for P250,000 which includes P1 cash…

A: The acronym "FVPL" stands for Fair Value Through Profit or Loss, these types of securities are not…

Q: On December 5, Taylor Inc., purchased 2000 shares of Company A at $60.5 per share, and 1000 shares…

A: Unrealized gains/losses are an increase or decrease in the value of an investment respectively,…

Q: Cblue Company owned 900,000 shares of Flight Company. On December 31, 2004, when the investment had…

A: The share means the smallest unit of the company's ownership. The shares are issued by the company…

Q: During the most recent year, Quinn Co. bought 2,800 shares of Germana-Hall Corporationcommon stock…

A: Since Quinn co does not own more than 10% of outstanding stock of any company, the investments are…

Q: The following are independent situations. Situation 1: Ivanhoe Cosmetics acquired 10% of the 215,000…

A: Journal entries are items of writing where you keep track of your thoughts and emotions on a certain…

Q: 1. The net income (loss) of Port Corp. for 2008 on a consolidated basis was:

A: Particulars Port Corp Sort co. No. of shares Capital 600000 200000 Investment      in Port…

Q: Amie, Inc., has 153,000 shares of $2 par value stock outstanding. Prairie Corporation acquired…

A: The cost of investment includes the cash transferred, Fair value of assets transferred, fair value…

Q: On January 2, 2016, Barney Co. acquired all of Dora's ordinary shares for $180,000. On that date,…

A: Accumulated profits are the retained profits which are set aside from the surplus profits to use…

Q: Sadavir Co. purchased 100% of the outstanding common stock of Errinwright, Inc. on 1/1/2X for…

A: Investment choices should be supported by in-depth investigation, analysis, and assessment of one's…

Q: Key Company purchased 800 shares of Franklin Company stock at a total cost of $ 7,560 on 2010 July…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Q: Oriole Company owns 40% interest in the stock of Sandhill Corporation. During the year, Sandhill…

A: Consolidated net income: Net income calculated at the end of a particular period by the parent…

Q: Farmer Corporation purchases 30% of the common stock of Jackson, Inc. at a purchase price of $13.5…

A: Equity investment is defined as money invested in the stock market by an individual and company by…

Q: Berry’s Concrete acquired 25% of the outstanding common stock of Blakeley, Inc. on January 1, 2010,…

A: Under the cost method of investment, the investment is reported in the balance sheet at the…

Q: Palm Company owns 100% of Soso Company. During year X1, Soso sold merchandise costing $50,000 to…

A: Soso sold merchandise cost =$ 50000 profit realised on it               =$ 30000 But, 40% stock…

Q: Whispering Corporation purchased 410 shares of Sherman Inc. common stock for $12,900 (Whispering…

A: The given investment would be classified as AFS as it satisfies does not satisfy the requirements of…

Q: On December 31, 2014, how much should MARIE CORP. carry its investment in CURIE INC.?

A: In case of equity method, the purchase value of investment would be adjusted for share in equity for…

Q: net reduction in retained earning

A: Dividend: dividend is the portions of profit given to the shareholders by the company There are…

Q: On July 7, Splish Ltd. purchased 1,100 common shares in a privately-owned company named TWR Ltd. As…

A: Journal entries refer to the process of systematically documenting the financial transactions of a…

Q: Indigo Cosmetics acquired 10% of the 193,000 shares of common stock of Martinez Fashion at a total…

A: Method of recording financial transactions in the book of original entry by debiting and crediting…

Q: On January 1, 20X8, Ball Corporation purchased shares of Leftwich Company common Stock. Assume the…

A: A balance sheet gives you a brief snapshot of the financial state of your business at any set…

Q: AUSTERE Co. owns 20% of the ordinary shares of SEVERE, Inc. SEVERE additionally has redeemable…

A: Shares refers to a particular value and capital that it issues to raise funds from the stock market…

Q: What amount should Romina Inc. report as dividend income?

A: No of shares bought by Romina Inc. = 160,000 shares             No of shares after stock split =…

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

A: INFORMATION:- This is a question that requires the preparation of journal entries for investment…

Q: At the start of the current year, Violet Company held 30% of ABC Company’s 150,000 outstanding…

A: From  ABC Company DEF Company No of share held by Violet  45,000 10,000…

Q: Packard Inc. is a public company. On January 1, 2020 Packard Inc. purchased 10,000 common shares…

A:

Q: Par Inc owns 77.11% of Sub Corp. During the year, Par sold inventory to Sub for $79,271. Exactly…

A: When the companies hold ownership in some other companies and then due to nature of business sells…

Q: 00 in 2017. 70 shares for $2,250 in 2018. 80 shares for $2,675 in 2019. They sold 160 shares of…

A: Answer :The basis used in the sale of share is FIFO basis. In FIFO method it is assumed that first…

Q: We own 35% of Smith corporation, please prepare journal entries for the following events under the…

A: When a company makes an investment in another company that falls within the range of significant…

Q: Amie, Incorporated, has 185,000 shares of $1 par value stock outstanding. Prairie Corporation…

A: The cost of investment includes the cash transferred, Fair value of assets transferred, fair value…

Q: Lauralee, Inc. owns a 30% interest in Eastwood Co., giving it representation on the investee’s board…

A: Journal entry refers to posting of the transactions into the books of the entity or corporation and…

Q: On January 1, 2008, Lallo Company purchased 15% of Vintar Company’s ordinary shares for P20,000,000.…

A: Given: Lallo Company purchased 15% of Vintar Company’s shares on Jan 1, 2008 Net Income = P6,000,000…

Q: Big owns 60% of Little and at December 31, 2012, its Investment in Little account stands at…

A: Journal entry refers to  posting of the transaction of the business into the books and it is the…

Q: Lebron Co. owns most but not all of the shares of its subsidiaryBryant Inc. Lebron reported net…

A:

Q: On July 15, 2021, Max Co. acquired 25,000 shares of Chicken Co. for P250,000 which includes P1 cash…

A: The realized gain refers to the gain that is converted into cash by the company by selling off the…

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.