What is the true option general Accounting question Green Investments purchases 800 shares of TechNova Corporation stock onNovember 15, 2017, for $320,000. On January 20, 2018, Green purchases anadditional 600 shares of TechNova stock for $270,000. According to marketquotations, TechNova stock is selling for $450 per share on 12/31/17. Green sells400 shares of TechNova stock on April 15, 2018, for $192,000, assuming theshares sold are from the shares purchased on January 20, 2018.Calculate the recognized gain or loss from the sale of TechNova stock.Options:a. $12,000 gainb. $16,000 gainc. $8,000 lossd. $20,000 gaine. $10,000 loss

Step 1: Define Capital GainCapital gain represents the profit realized from selling a capital asset…

Answered: Green Investments purchases 800 shares…

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter6: Corporations: Redemptions And Liquidations

Section: Chapter Questions

Problem 64P

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Panthers Corp.purchased 8,000 shares of Canes Corp.for $100 per share on August 1, 2019. As per IFRS 9, Panthers chose to classify this new investment as FVOCI at the time of the purchase. On November 1, 2019 Canes paid a dividend of $2 per share. At balance sheet date the market price of Canes was $90 per share. On March 1, 2020 Panthers sold all 8,000 shares for $105 per share.RequiredPrepare the journal entries required under IFRS as well as those that would be required under GAAP.
On February 1, 2019, Destiny Enterprise repurchases 770 shares of its outstanding common stock for $9 per share. On March 1, 2019, Destiny sells 250 shares of treasury stock for $12 per share. On May 10, 2019, Destiny sells the remaining 520 shares of its treasury stock for $6 per share. Prepare the journal entries to record these transactions.
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
Pangan Corp. acquired 4,000 shares of Agustin, Inc. ordinary shares on Oct. 20, 2017 for P 660,000. On Nov. 30, 2019, Agustin distributed a 10% ordinary share dividend when the market price of the stock was P 250 per share. On Dec. 20, 2019, Pangan sold 400 shares of its Agustin stock for P 106,000. For the year ended Dec. 31, 2019, how much should Pangan report as dividend revenues? P – 0 – P 106,000 P 100,000 P 46,000
During 2019, Don Co. purchased 9,000 ordinary shares of Pia Co. for P16 per share, 6,000 ordinary shares of Ron Co. for P33 per share and P120,000 of treasury notes at 101. These investments are intended to be held as ready sources of cash and are classified as held for trading. Also in 2019, Don purchased 10,500 ordinary shares of Zen Co. for P29 per share. The securities are classified as available for sale. During 2019, Don received the following interest and dividend payment on its investments: Pia Co. P1 per share dividend Ron Co. P3 per share dividend Zen Co. P2 per share dividend Treasury notes 6% annual interest earned for 6 months Fair values of the securities at December 31, 2019, were as follows: Pia Co. P20 per share Ron Co. P22 per share Zen Co. P26…
Center, Inc., purchases 24,000 shares of Bruce Corporation, which equates to an 80% interest, on January 1, 2015.The following determination and distribution of excess schedule is prepared: (attached)Bruce Corporation reports net income of $35,000 for the six months ended July 1, 2018. Center’s simple-equity-adjusted investment balance is $864,000 as of December 31, 2017. Prepare all entries for the sale of the Brown Corporation shares on July 1, 2018, for each of the following situations:1. 24,000 shares are sold for $890,000.2. 12,000 shares are sold for $455,000.3. 6,000 shares are sold for $232,500.
On Jan. 1, 2023 Apex Company purchases 30,000 shares of the common stock of Cary Industries for $2,000,000. Cary Industries has 100,000 shares of common stock issued and outstanding As a result of this investment Apex is given 3 of the 8 seats on Cary's board of directors. For 2023 Cary reports net income of $350,000. On June 1 and Sept. 1 Cary Industries pays a dividend of $0.25 per share to its shareholders. Required: At what amount should this investment be reported on Apex's balance sheet at Dec. 31, 2023?
On December 31, 2016, Akron, Inc. purchased 5 Percent of Zip Company’s common shares on the open market in exchange for $16,000. On December 31, 2017, Akron, Inc., acquires an additional 25 percent of Zip Company’s outstanding common stock for $95,000.During the next two years, the following information is available for Zip Company:At December 31, 2017, Zip reports a net book value of $290,000. Akron attributed any excess of its 30 percent share of Zip’s fair over book value to its share of Zip’s franchise agreements. The franchise agreements had a remaining life of 10 years at December 31, 2017.a. Assume Akron applies the equity method to its Investment in Zip account:1. What amount of equity income should Akron report for 2018?2. On Akron’s December 31, 2018, balance sheet, what amount is reported for the Investment in Zip account?b. Assume Akron uses fair-value accounting for its Investment in Zip account:1. What amount of income from its investment in Zip should Akron report for…
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On April 10, 2019, Amelia Inc. purchased 450 shares of its own common stock in the market for $22 per share. On September 28, 2019, the company sold 270 of these shares in the open market at a price of $25 per share. Required: a. Use the horizontal model to show the effects on Amelia Inc's financial statements of the purchase of the treasury stock on April 10, 2019. Indicate the financial statement effect. (Enter decreases with a minus sign to indicate a negative financial statement effect.) Balance Sheet Income Statement Assets Liabilities Stockholders' Equity Net Income Revenues Expenses b. Use the horizontal model to show the effects on Amelia Inc's financial statements of the sale of the treasury stock on September 28, 2019. Indicate the financial statement effect. (Enter decreases with a minus sign to indicate a negative financial statement effect.) Balance Sheet Income Statement Assets Liabilities Stockholders' Equity Net Income Revenues Expenses +
On January 1, 2024 Angel, Inc. purchased 100,000 shares of Halo Company common stock for $550,000, giving Angel a 25% ownership. Angel uses the equity method and any excess cost over book value is attributed to goodwill. During 2024 Halo reports NI of $200,000 and pays $40,000 in dividends (both distributed/earned evenly throughout the year). On July 1, 2024 Angel sells 20,000 shares for $160,000 and its ownership drops to 20%. Angel continues to use the equity method after the sale of shares. 1. What is the balance in the Investment in Halo account as of 12/31/2024? $582,000 2. What is dollar amount of the gain or loss on sale of shares? 3. Were the shares sold at a gain or loss Loss $8.000 4. Determine the amounts that Angel will record in their 2024 income statement related to $24,000 its ownership of Halo and partial sale of its investment in Halo stock. All answers should be formatted like this: $100,000
Solomon Company owned 20,000 shares of Moses Company purchased in 2015 for P2,400,000. On December 15, 2020, Solomon declared a property dividend of all of its Moses Company shares on the basis of one share of Moses for every 10 ordinary shares of Solomon held by its shareholders. The property dividend was distributed on January 15, 2021. On the declaration date, the aggregate market price of the Moses shares held by Solomon was P2,200,000 and P2,000,000 by December 31, 2020. What is the measurement of the investment in shares at December 31, 2020?

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