Financial Accounting Question please answer Falcon Enterprises, purchases 1,200 shares of Hawk Technologies Ltd. stock on September 8,2019, for $480,000.On November 15, 2019, Falcon purchases an additional 800 shares of Hawk Technologies stockfor $320,000.According to market quotations, Hawk Technologies stock is selling for $410 per share on12/31/19. Falcon sells 600 shares of Hawk Technologies stock on April 5, 2020, for $252,000.What is Falcon Enterprises' recognized gain or loss from the sale of Hawk Technologies stock onApril 5, 2020, assuming the shares sold are from the shares purchased on November 15, 2019?(Round per-share values to the nearest whole dollar, and use the rounded amount in furthercalculations.)

Step 1: Define Recognized Gain or LossA recognized gain or loss occurs when an asset is sold, and…

Answered: Falcon Enterprises, purchases 1,200…

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

Chapter12: Intangibles

Section: Chapter Questions

Problem 18E

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On March 1, 2020 K.K. Corporation purchased 2,000 shares of Potter Wholesale for $35 per share. Based on the percentage of outstanding stock purchased, K.K. Corporation uses the fair value method to account for the investment. On December 31, 2020 the shares of Potter Wholesale had a current market value of $32 per share. What amount of realized gain or loss would K.K. Corporation report on its 2021 income statement if K.K. corporation sells the 2,000 shares of Potter Wholesale on July 1, 2021 for $34 per share? O $4,000 gain O $4,000 loss O $2,000 gain $2,000 loss O $1,000 loss
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Kim Corporation holds 10,000 shares of its P10 par common stock as treasury stock, which was purchased in 2019 at a cost of P120,000. On December 10, 2020, Kim sold all 10,000 shares for P210,000. Assuming that Kim used the cost method of accounting for treasury stock, this sale would result in a credit to Choices; Treasury Shares Premium of P90,000. Treasury Shares Premium of P110,000. Gain on Sale of Treasury Stock of P90,000. Retained Earnings of P90,000.
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Choco, Inc. acquires 15% of Cake Corporation on January 1, 2020, for $130,000 when the book value of Cake’s net assets was $760,000. During 2020 Cake reported net income of $150,000 and paid dividends of $32,000. Cake has a land that are undervalued by $30,000 in January 1, 2020. On January 1, 2021, Choco purchased an additional 30% of Cake for $280,000, giving Choco the ability to significantly influence the operating policies of Cake. During 2021, Cake reported net income of $180,000 and paid dividends of $32,000. Cake’s land was undervalued by $32,000 in January 1, 2021. Any excess of cost over book value is attributable to Trademark which has a useful life of 8 years in January 1, 2020. During 2020 and 2021, there was no fair value adjustment for Cake (there was no changes in fair value). And during 2020 and 2021, there was no changes in net assets. 5) In 2021, using the equity method, what is the balance of the investment account in Cake at December 31, 2020? Show your…
Choco, Inc. acquires 15% of Cake Corporation on January 1, 2020, for $130,000 when the book value of Cake’s net assets was $760,000. During 2020 Cake reported net income of $150,000 and paid dividends of $32,000. Cake has a land that are undervalued by $30,000 in January 1, 2020. On January 1, 2021, Choco purchased an additional 30% of Cake for $280,000, giving Choco the ability to significantly influence the operating policies of Cake. During 2021, Cake reported net income of $180,000 and paid dividends of $32,000. Cake’s land was undervalued by $32,000 in January 1, 2021. Any excess of cost over book value is attributable to Trademark which has a useful life of 8 years in January 1, 2020. During 2020 and 2021, there was no fair value adjustment for Cake (there was no changes in fair value). And during 2020 and 2021, there was no changes in net assets. 3) In 2021, when Choco acquired additional 30% of Cake, Choco needs to use equity method retrospectively to record for…
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Please show the proper solution in a good accounting form.
On January 2, 2020, Black Company purchased 17% of Rock Company's common stock for $51,000. Rock's net income for the years ended December 31, 2020, and December 31, 2021, were $15,000 and $59,000, respectively. During 2020, Rock declared and paid a dividend of $67,500. On December 31, 2020, the fair value of the Rock stock owned by Black had increased to $69,000. How much should Black show in the 2020 income statement as income from this investment? Multiple Choice $29,475. There is no correct answer. $24,000. $11,475. $18,000. ME MacBook Air

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