On January 1 of the current year, Rhondell Corporation has accumulated E & P of $132,000. Current E & P for the year is $396,000, earnedevenly throughout the year. Elizabeth and Jonathan are sole equal shareholders of Rhondell from January 1 to April 30. On May 1, Elizabethsells all of her stock to Marshall. Rhondell makes two distributions to shareholders during the year: a total of $211,200 ($105,600 toElizabeth and $105,600 to Jonathan) on April 30 and a total of $369,600 ($184,800 to Jonathan and $184,800 Marshall) on December 31.Determine the allocation of the distributions by completing the table below. Assume that the shareholders have sufficient basis in theirstock for any amount that is treated as return of capital.If an amount is zero, enter "0". If required, round any division to two decimal places and use in subsequent computations.Round final answers to the nearest dollar.From CurrentE & PFrom AccumulatedE & PTreated asReturn of CapitalApril 30 distribution of $211,200144,000 X67,200 X $0December 31 distribution of $369,600252,000 X64,800 X $52,800✔

Return of Capital -A return of capital (ROC) is a sum of money received from an investment that is…

Answered: From Current E & P From Accumulated E &…

From Current E & P From Accumulated E & P Treated as Return of Capital April 30 distribution of $211,200 144,000 X 67,200 X 0 December 31 distribution of $369,600 252,000 X 64,800 X 52,800

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Year Initial Cost & Carrying amount Annual net cash flows Annual net profit 0 $ 150,000.00 1 $ 70,000.00 $ 50,000.00 $ 15,000.00 2 $ 42,000.00 $ 45,000.00 $ 17,000.00 3 $ 21,000.00 $ 40,000.00 $ 19,000.00 4 $ 7,000.00 $ 35,000.00 $ 21,000.00 5 $ - $ 30,000.00 $ 23,000.00 1. Terrys titles ltd is reviewing a capital investment proposal.The inital cost of the project and the net cash flows for every year presented in the schedule above. It is estimate that there would be no salvage value at the end of the investments life.Terry's uses a required rate of return of 10 per cent to evaluate new capital investment proposals. a. Calculate the…
Current Attempt in Progress Lee Enterprises reports the following information: Net income Depreciation expense Increase in accounts payable Increase in accounts receivable $5180000 $3979520. $5180000. $6380480. $5706480. 704480 159000 337000 Lee should report cash provided by operating activities of
The revaluation surplus as of December 31, 2020 isa. P1,720,000 c. P1,800,000b. P1,710,000 d. P 960,000
1. Based on the following information: Trial balance trade investment Equity Sale Sale allowances trade payables Cos CAD $ 300,000.00 $2,000,000.00 $3,000,000.00 $ 250,000.00 $ 800,000.00 $ 800,000.00 long term debt Cash $ 300,000.00 salary advance slow moving Inventory $ $1,000,000.00 70,000.00 $ 300,000.00 fast moving inventories $ 500,000.00 Pre payment $ 500,000.00 bad debt receivables non current asset long term investment $ (50,000.00) $ 400,000.00 $2,000,000.00 $ 450,000.00 Accumulated Depreciation $ (800,000.00) Calculate the following ratios: a. Company working capital b. Current ratio c. Quick ratio d. Inventory turnover e. Receivable turnover f. Asset turn over
calculate: Debt ratio Interest coverage ratio Dividend yield current asset- 1.170.7 million inventory- 859.9 million currant liability- 885.8 million total dedt- 1.598.8 million total assets- 2.452.3 million operating profit- 1.230.5 million interest expense- 10,700 thousand
RNOA + FLEV X Spread X NCI Ratio = ROE 25.89% +FLEV X 24.37% X 1.0026 =50% What is FLEV? Please show steps
Exercise 23-11 Condensed financial data of Ivanhoe Company for 2020 and 2019 are presented below. IVANHOE COMPANYCOMPARATIVE BALANCE SHEETAS OF DECEMBER 31, 2020 AND 2019 2020 2019 Cash $1,770 $1,170 Receivables 1,780 1,300 Inventory 1,570 1,880 Plant assets 1,870 1,710 Accumulated depreciation (1,210 ) (1,190 ) Long-term investments (held-to-maturity) 1,290 1,430 $7,070 $6,300 Accounts payable $1,200 $900 Accrued liabilities 200 250 Bonds payable 1,430 1,580 Common stock 1,860 1,730 Retained earnings 2,380 1,840 $7,070 $6,300 IVANHOE COMPANYINCOME STATEMENTFOR THE YEAR ENDED DECEMBER 31, 2020 Sales revenue $6,820 Cost of goods sold 4,640 Gross margin 2,180 Selling and administrative expenses 910 Income…
LL %24 The separate condensed balance sheets of Patrick Corporation and its wholly-owned subsidiary, Sean Corporation, are as BALANCE SHEETS December 31, 2020 Patrick Sean Cash Accounts receivable (net) Inventories Plant and equipment (net) Investment in Sean 24 000'9 000 9 000 00000 000 0 000 $1,400,000 $ 418,000 Total assets 82,000 Accounts payable Long-term debt Common stock ($10 par) Additional paid-in capital Retained earnings 000'8 000 306,000 262,000 000't78 Total liabilities and shareholders' 000 Additional Information: • On December 31, 2020, Patrick acquired 100 percent of Sean's voting stock in exchange for $454,000. • At the acquisition date, the fair values of Sean's assets and liabilities equaled their carrying amounts, respectively, except that the fair value of certain items in Sean's inventory were $20,000 more than their carrying amounts. In the December 31, 2020, consolidated balance sheet of Patrick and its subsidiary, what amount of total assets should be reported?…
Becker CPA Review 19-7 ABC Corp. paid two cash distributions during year 5. The first was $42,000, and the second was $33,000. Accumulated earnings and profits (E & P) at the end of year 4 were $80,000. Current E & P for year 5 is $30,000. How will the second distribution be allocated between current E & P and accumulated E & P? Current E & P Accumulated E & P a. $13,200$19,800 b. $16,500$16,500 c. $19,800$13,200 d. $30,000$30,000
9
What is Ratio Corporation's Current Ratio at 12/31/2021? Question 2 options: 2.11 2.22 1.21 None of these options
The machinery has a remaining useful life of 5 years. Mobi Co.'s dividends of P500,000 in 20x1. How much are the (1) implied goodwill (negative goodwill) on the investment; (2) share in the NAL of Black Co ling shares ir values. I ed and paid revaluation for the ye Co. report in associa 4. On January 1, 20x1, Arco Co. acquired 20% interest in Mobi Co. for P1,600,000. On this date, the carrying amounts of Mobi Co.'s assets and liabilities approximate their fair values except for the following: Inventory Machinery Carrying amount Fair value 300,000 1,800,000 400,000 1,500,000 ai equity, at book value, was P8,000,000 on Jan. 1, 20x1. Mobi eported profit of P3,000,000 and declared and paid cash 0.000 0,000 will (negative goodwill) on the investment; (2) share in the