Equity Method and Other Comprehensive Income Mitchell Corporation pays $15 million to acquire a 30 percent interest in Turner Corporation's stock on January 1, 2023, and reports the investment using the equity method. Any basis difference is attributed to goodwill During 2023. Turner reports net income of $900.000, which includes $800.000 in realized and unrealized gains on trading securities Turnier also reports $65.000 in unrealized losses on AFS securities in other comprehensive income, and pays dividends of $200.000 in 2023. Required Prepare Mitchell's journal entries to record the above events for 2023 Description Credi Investment in Turner To record investment in Turner's stock D To record receipt of dividends from Turmer · ÷ = To record Miches share of Turmer's net income • 0 4 . Debit 15.000.000 0 0 0 D 15.000.000 0

Equity Method and Other Comprehensive Income Mitchell Corporation pays $15 million to acquire a 30 percent interest in Turner Corporation's stock on January 1, 2023, and reports the investment using the equity method. Any basis difference is attributed to goodwill During 2023. Turner reports net income of $900.000, which includes $800.000 in realized and unrealized gains on trading securities Turnier also reports $65.000 in unrealized losses on AFS securities in other comprehensive income, and pays dividends of $200.000 in 2023. Required Prepare Mitchell's journal entries to record the above events for 2023 Description Credi Investment in Turner To record investment in Turner's stock D To record receipt of dividends from Turmer · ÷ = To record Miches share of Turmer's net income • 0 4 . Debit 15.000.000 0 0 0 D 15.000.000 0

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

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 2MC: During 2021, Anthony Company purchased debt securities as a long-term investment and classified them...

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During 2021, Anthony Company purchased debt securities as a long-term investment and classified them as trading. All securities were purchased at par value. Pertinent data are as follows: The net holding gain or loss included in Anthonys income statement for the year should be: a. 0 b. 3,000 gain c. 9,000 loss d. 12,000 loss
Waseca Company had 5 convertible securities outstanding during all of 2019. It paid the appropriate interest (and amortized any related premium or discount using the straight line method) and dividends on each security during 2019. Each of the convertible securities is described in the following table: Additional data: Net income for 2019 totaled 119,460. The weighted average number of common shares outstanding during 2019 was 40,000 shares. No share options or warrants arc outstanding. The effective corporate income tax rate is 30%. Required: 1. Prepare a schedule that lists the impact of the assumed conversion of each convertible security on diluted earnings per share. 2. Prepare a ranking of the order in which each of the convertible securities should be included in diluted earnings per share. 3. Compute basic earnings per share. 4. Compute diluted earnings per share. 5. Indicate the amount(s) of the earnings per share that Waseca would report on its 2019 income statement.
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The following selected transactions relate to investment activities of Ornamental Insulation Corporation during 2024. The company buys debt securities, intending to profit from short-term differences in price and maintaining them in an active trading portfolio. Ornamental's fiscal year ends on December 31. No investments were held by Ornamental on December 31, 2023. March 31 Acquired 8% Distribution Transformers Corporation bonds costing $518,008 at face value. September 1 Acquired $1,238,800 of American Instruments' 18% bonds at face value. September 38 Received semiannual interest payment on the Distribution Transformers bonds. October 2 Sold the Distribution Transformers bonds for $590,000. November 1 Purchased $1,950,088 of M&D Corporation 6% bonds at face value. December 31 Recorded any necessary adjusting entry(s) relating to the investments. The market prices of the investments are American Instruments bonds M&D Corporation bonds (Hint: Interest must be accrued.) Required: 1.…
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What amount should be recognized in 2019 Other Comprehensive Income?
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The following selected transactions relate to investment activities of Ornamental Insulation Corporation during 2021. The company buys debt securities, intending to profit from short-term differences in price and maintaining them in an active trading portfolio. Ornamental’s fiscal year ends on December 31. No investments were held by Ornamental on December 31, 2020. Mar. 31 Acquired 8% Distribution Transformers Corporation bonds costing $480,000 at face value. Sep. 1 Acquired $1,140,000 of American Instruments' 10% bonds at face value. Sep. 30 Received semiannual interest payment on the Distribution Transformers bonds. Oct. 2 Sold the Distribution Transformers bonds for $545,000. Nov. 1 Purchased $1,800,000 of M&D Corporation 6% bonds at face value. Dec. 31 Recorded any necessary adjusting entry(s) relating to the investments. The market prices of the investments are American Instruments bonds $ 1,098,000 M&D…