he fair value of common stock 15 per share. Calculate the investment in GMC Company.
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On April 1 2018, Honda Co., purchased 75% of outstanding common stock of GMC Co., @ OMR 250,000 cash. The Co., common stock OMR 40,000 @12 per share. The fair value of common stock 15 per share. Calculate the investment in GMC Company.
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- The investments of Harlon Enterprises included the following cost and fair value amounts ($ in millions): Fair Value, Dec. 31 2022 N/A $ 37 Equity Investments A Corporation shares B Corporation shares C Corporation shares. D Industries shares Totals Cost $ 20 35 15 45 $115 1 Increase 2 Amount Harlon accounts for its equity investment portfolio at fair value through net income. Harlon sold its holdings of A Corporation shares on June 1, 2022, for $15 million. On September 12, it purchased the C Corporation shares. $ 2021 $ 14 Required: 1. What is the effect of the sale of the A Corporation shares and the purchase of the C Corporation shares on Harlon's 2022 pretax $ 35 N/A 46 $95 earnings? 2. At what amount should Harlon's securities equity investment portfolio be reported in its 2022 balance sheet? (For all requirements, enter your answers in millions, (i.e., 10,000,000 should be entered as 10).) 14 50 $101 6 million 5 milionBrown Corporation earns $600,000 and pays cash dividends of $200,000 during 2012. Dexter Corporation owns 3,000 of the 10,000 outstanding shares of Brown. What amount should Dexter show in the investment account at December 31, 2012 if the beginning of the year balance in the account was $800,000? $980,000. $800,000. $920,000. $1,200,000.A corporation using the equity method of accounting for its investment in a 80%–owned investee, which earned $20,000 and paid $5,000 in dividends What is the ending balance of investment on 31/12 if investment in 1/1 amount 100,000$ ? Select one: a. 112,000 b. 115,000 c. 120,000 d. 100,00
- Grouper Co. invested $1,060,000 in Monty Co. for 25% of its outstanding stock. Monty Co. pays out 30% of net income in dividends each year.Use the information in the following T-account for the investment in Monty to answer the following questions. Investment in Monty Co. 1,060,000 121,000 36,300 (a) How much was Grouper Co.’s share of Monty Co.’s net income for the year? Net income $enter Grouper’s net income in dollars (b) What was Monty Co.’s total net income for the year? Total net income $enter the total net income of MontyCo. for the year (c) What was Monty Co.’s total dividends for the year? Total Dividends $enter the total dividends of MontyCo. for the year (d) How much was Grouper Co.’s share of Monty Co.’s dividends for the year? Dividends $enter the dollar amount of dividends for Grouper Co.Tiger Ltd. has an authorized capital of 700,000 $1 ordinary shares, of which 300,000 have been issued as fully paid. The following information was extracted from the accounts for the year ended September 30, 2019: Details/Accts. $ DR $ CR Motor Vehicle at cost 1,750,000 Acc. Depreciation Motor Vehicle 450,000 Freehold premises at cost 400,000 Carriage inwards 35,500 Sales 4,500,000 Stock, October 1, 2018 95,000 Administration (Wages and Salaries) 170,000 Distribution (Wages and Salaries) 250,000 Motor vehicle running costs 350,000 Purchases 935,000 Returns inward 32,000 Returns outward 51,000 Directors’ remuneration 865,000 Auditors’ fees 120,000 General administrative expenses…The following is an extract from the trial balance of Tempo Ltd on 30 June 2022:£Land and buildings 114 000Equipment 210 000Investment (80 000 shares of £1 each in Rhythm Ltd at cost price) 650 000Inventory (30/6/2008 - £382 000) 418 000Trade receivables (30/6/2021 – £180 000) 206 000Cash and cash equivalents 92 000Share capital:Ordinary share capital including premium 450 000Preference share capital 200 000Retained earnings:Balance – beginning of year 160 000Retained profit for the year 40 00012% Long term loan 420 000Trade payables (30/6/2021 – £190 000) 210 000Tax payable 110 000Dividends payable 100 000Additional information:1. Issued share capital:- 400 000 ordinary shares of £1 each- 40 000 10% preference shares of £5 each.2. Gross profit for the year amounted to £1 344 000 and represents 40% of turnover for the year.3. All sales and all purchases are on credit.4. Income from investment for the year amounted to £24 000.5. The dividends payable represents the total amount of…
- Case A: On January 1, 2021, your company purchased 60,000 shares of Freeze Company's $10 par common stock for $26 per share in cash plus paid $10,000 of broker's fees. On that date, Freeze Company's assets and liabilities had a book value equal to market value except for their building which had a market value which was $80,000 higher than its book value and had a 20-year remaining life. 2021 a. Purchased 60,000 shares of Freeze Company's $10 par common stock for $26 per share in cash plus paid $10,000 in broker's fees.. b. Received $30,000 in cash dividends. On December 31, 2021: 1. Freeze Company's stock had a market value of $25 per share. с. 2. Freeze Company reported net income of $400,000. 2022 d. Received a 10% stock dividend. On December 31, 2022: 1. Freeze Company's stock had a market value of $24 per share. е. 2. Freeze Company reported net income of $500,000. Assume the 60,000 shares you purchased represented 30% of the outstanding shares of Freeze Company so you were using…Vipul k Don't upload any image please12. Sina Company purchased 10,000 shares representing 2% ownership of Heyoon Company on February 15, 2018. Sina received a stock dividend of 2,000 shares on March 31, 2018, when the carrying amount per share on Heyoon’s books was P350 and the market value per share was P400. Heyoon paid a cash dividend of P15 per share on September 15, 2018. In Sina’s income statement for the year ended October 31, 2018, what amount should Sina report as dividend income?
- 11Strawberry company purchased 70% of the outstanding voting share of Apple company at the beginning of 2019 OMR 400,000. The dividend distribution in the year of 2019 OMR 50,000. What is the entry of dividend income? Select one: a. Cash A/C Dr 400,000 Dividend Income Cr 400,000 b. Cash A/C Dr 280,000 Dividend Income Cr 280,000 С. Cash A/C Dr 50,000 Dividend Income Cr 50,000 O d. Cash A/C Dr 35,000 Dividend Income Cr 35,000Pronghorn Co. invested $1,070,000 in Stellar Co. for 25% of its outstanding stock. Stellar Co. pays out 30% of net income in dividene each year. Use the information in the following T-account for the investment in Stellar to answer the following questions. Investment in Stellar Co. 1,070,000 99,000 (a) How much was Pronghorn Co.'s share of Stellar Co's net income for the year? Net income 29,700 Total net income (b) What was Stellar Co's total net income for the year? 428000 Total Dividends. $ 396000 (c) What was Stellar Co's total dividends for the year? 128400
