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- K Company owns 20% of F Company. For the current year F reports net income of $200,000 and declares and pays a $50,000 cash dividend. Record K’s equity in F’s net income and the receipt of dividends from F.
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- (TCO A) Bend Inc. holds 25% of the outstanding voting shares of Calico Co. and appropriately applies the equity method of accounting. Amortization associated with this investment equals $9,000 per year. For 20X3, Calico reported earnings of $80,000 and paid cash dividends of $30,000. During 20X3, Calico acquired inventory for $57,600, which was then sold to Bend for $90,000. At the end of 20X3, Bend still held some of this inventory at its transfer price of $40,000.Required:(1) Determine the amount of intra-entity profit at the end of 20X3.(2) Determine the amount of Equity in Investee Income that Bend should have reported for 20X3.Ruiz Company puchased 30 per cent of Sim Company’s outstanding common stock for $3,000,000 and uses the equity method of accounting. Sim Company reported net income of $ 640,000 for 2018. On 2018 December 31, Sim Company paid a cash dividend of $200,000. In 2019, Sim Company incurred a net loss of $ 65,000. Prepare entries to reflect these events on Ruiz Company’s books.James Co. owns 8,000 of the 20,000 outstanding shares of Lamp Corp. common stock and exercises significant influence over the company. During 2019, Lamp earns $200,000 and pays cash dividends of $80,000. For the year ended December 31, 2019, James Co. should report income related to the investment equal to: ○ $0 O $72,000 $80,000 O $32,000
- Mozart Co. owns 35% of Melody Inc. Melody pays $50,000 in cash dividends to its shareholders for the period. Mozart’s entry to record the Melody dividend includes a:Carter Corporation reports the following for the current taxable year: Gross income from operations $660,000 Dividends from 25%-owned corporation $300,000 Operating expenses $700,000 What is Carter’s taxable income?Green Corp. owns 30% of the outstanding common stock and 100% of the outstanding noncumulative nonvoting preferred stock of Axel Corp. In the current year, Axel declared dividends of $100,000 on its common stock and $60,000 on its preferred stock. Green exercises significant influence over Axel's operations. What amount of dividend revenue should Green report in its income statement for the current year ended December 31? A. $0 B. C. D. $30,000 $60,000 $90,000
- Martin Company provided the following data for the current year: -On March 1, Martin received P600,000 cash dividend from Paul Company in which Martin owns 30% interest. -Martin owns 12% interest in James Company, which declared and paid P3,000,000 cash dividend on December 15. - On September 1, Martin received an P80,000 liquidating dividend from Luke Company. Martin owns a 5% interest in Luke Company. What amount should Martin Company report as dividend income for the current year?On July 15, 2021, Max Co. acquired 25,000 shares of Chicken Co. for P250,000 which includes P1 cash dividend per share to shareholders of record as of July 30, 2021. Max Co does not have significant influence over Chicken Co. The entity also spent additional P5,000 transaction cost. The dividend was received by Max Co. on August 15, 2021. On November 15, 2021, the Max Co. sold 10,000 shares for P10.5/share. At year- end, Chicken Co.'s shares were selling at P12 per share.During the current year, Swallow Corporation, a calendar year C corporation, has the following transactions: Income from operations $660,000 Expenses from operations 760,000 Dividends received from Brown Corporation 240,000 Click here to view the dividend received deduction table. Question Content Area a. Swallow Corporation owns 12% of Brown Corporation's stock. How much is Swallow's taxable income or NOL for the year? Swallow's taxable income after deducting the dividends received deduction is $fill in the blank fd6fd0f8303e049_2 . Feedback Area Feedback The purpose of the dividends received deduction is to mitigate multiple taxation of corporate income. Without the deduction, income paid to a corporation in the form of a dividend would be taxed to the recipient corporation with no corresponding deduction to the distributing corporation. Later, when the recipient corporation paid the income to its shareholders, the income would again be subject to taxation with no corresponding…
- In 2023, Avalanche Corporation has $70,000 of net income from operations during the current year. In addition, Avalanche received $180,000 of dividend income from a corporation in which Avalanche has a 35% ownership interest. What is Avalanche's dividends received deduction for 2023?Garrison holds a controlling interest in Robertson’s outstanding stock. For the current year, the following information has been gathered about these two companies: Garrison RobertsonSeparate $300,000 $200,000operating income (includes $50,000 intra-entity gross profit in ending inventory)Dividends paid ...32,000 50,000Tax rate . . . . . . . . . 40% 40% Garrison uses the initial value method to account for the investment in Robertson. Garrison’s separate operating income figure does not include dividend income for the current year.a. Assume that Garrison owns 80 percent of Robertson’s voting stock. On a consolidated tax return, what amount of income tax is paid?b. Assume that Garrison owns 80 percent of Robertson’s voting stock. On separate tax returns, what total amount of income tax is paid?c. Assume that Garrison owns 70 percent of Robertson’s voting stock. What total amount of income…D1. Account
