Identify how much to add or deduct from the Investment in Associate account of ABC based on the following transactions or events: Dec. 1, 2020 - ABC Bought 3,000 X Corp. shares at P200 per share. The total ordinary shares outstanding of X is 100,000 and each had a par value of P150.
Q: TJH Corporation was organized on January 1, 2020, with authorized capital of 200,000 shares of P10…
A: Formula: Share capital = Number of shares issued x Issue price.
Q: 0,000 shares f
A: Introduction Capital Gain on Shares: It is possible to realist a capital gain on the appreciation…
Q: On January 2, 2020, Hanz Corporation bought 30% of the outstanding ordinary shares of Eve…
A: The following computations are done for Hanz Corporation.
Q: The following investment-related transactions were completed by LackyCorp. during 2020 - Purchased…
A: As per IFRS 9, Financial instruments, The financial asset classified as FVTOCI will be initially…
Q: On September 3, 2021, Liberty Bank purchased 14,000 shares of eBay stock for $77 per share and…
A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…
Q: Batman Corporation currently holds 28% of the shares of Joker Corporation as a long-term investment.…
A: Step 1 The term "associate investment" refers to an investment in a company over which the investor…
Q: On July 1, 2021, JKJ Corporation purchased 100 common shares of JMK Ltd. at $20 per share. JKJ…
A: Solution: As shares are expected to be sold with in a year, therefore investment should be…
Q: ABC Corp holds 1,000 shares of XYZ Corp.'s shares since 2019. The following are data available at…
A: If investment in equity stocks are designated as FVOCI (Fair value through other comprehensive…
Q: On January 1, 2018, ABC Company purchased 40,000 shares of RST at P100 per share. The investment in…
A: Measurements of Investment-: In addition to common deviation, a bond's or bond fund's risk is…
Q: Live Large Inc. had the following transactions involving non-strategic investments during 2020.…
A: Journal Entry The purpose of preparing the journal entry to enter the required transaction into…
Q: Agustin Company has the following transactions relating to its investments during 2022. January 5 -…
A: Introduction:- The following basic information as follows under:- Shares held-for-trading means…
Q: AGUILA Company was organized on January 1, 2018. On that date, it issued 500,000 shares of its P10…
A: Stockholders Equity (often recognized as Stakeholders Equity) seems to be a balance-sheet statement…
Q: On December 1, 2019, ANNA Corporation issued 1,000 shares of its P10 2 points par ordinary share…
A: The allocation of aum sum issue amount is given by Ai = Mi/M * C Where Ai = amount allocated to…
Q: On December 31, 2020, Hazel Company held 1,000 ordinary shares of X Co. in its portfolio of…
A: FVOCI method accounts fair value adjustment through OCI.
Q: For items 5 and 6, please refer to the following information: On January 1, 2021, ABC Company…
A: When the investment is purchased , transaction cost is included in its total cost.
Q: Assume that, on January 1, 2021, Sacramento Corporation paid $1,622,400 for its investment in 62,400…
A:
Q: Phoebe Company presented the following entries in its "Shareholders' Equity" account for the year…
A: Shareholders equity balance comprises of common stock and retained earnings and treasury stock.…
Q: The net unrealized loss at December 31, 2020 in accumulated OCI in shareholders' equity is
A: Unrealized loss is the loss which has been recorded by the company due to reason of change in the…
Q: During 2022, Merry Co. purchased the following shares which it classified as FVPL investment:…
A: Fair Value through Profit and Loss A/c: if a financial instrument is held as FVPL then it means it…
Q: or numbers 1 to 11, identify how much to add or deduct from the Investment in Associate account of…
A: Step 1 As per US GAAP, in consolidated financial statements, we applied equity method to account the…
Q: A. On 1 July 2020, Alba Bbd. acquired 30 per cent of the ordinary shares that carry voting rights at…
A: Investment in Equity Method Investment in equity method which are calculated on cost basis and not…
Q: On January 1, 2019, Lallo Company purchased 15% of Vintar Company's ordinary shares for P20,000,000.…
A: Formula: Income from the investment = Total dividends paid x Percentage of holding shares
Q: Princess Corp. purchased 100,000 ordinary shares at P80 per share on January 1, 2020. These shares…
A: The ordinary shares means the shares whose shareholders have the right to participate in the…
Q: Fill in the blanks: On January 1, 2020 Iskrambol Company purchased 20% of Ice Buko Company's…
A: The question is related to Investment in Associates. Required 1. Investment Income 2020 2. The…
Q: In 2018, Lakers Corporation acquired 3,000 shares of its P 20 par value ordinary share capital at…
A: Treasury shares are those shares which are being reacquired or repurchased by the company from its…
Q: Garnett Company was organized on January 1, 2020 with authorized capital of 100,000shares of P200…
A: Share premium is additional amount received in excess of par on issue of stock
Q: On 1 January 2020, the company "A" S.A. had a common share capital of 2,000,000€, differences from…
A: Date Particulars Amount in Dr. Amount in Cr. 1/5/2020 Ordinary Share Capital A/c To Bank A/c…
Q: Live Large Inc. had the following transactions involving non-strategic investments during 2020.…
A: Investments are done by companies to earn extra income in the form of interest on the residual funds…
Q: ABC Corporation has an investment of 4,000,000 shares in XYZ Corporation. On December 31, 2021, ABC…
A: Dividend in form of shares given to stockholders is called as Stock Dividend Stock Dividend is…
Q: BC Corporation has an investment of 4,000,000 shares in XYZ Corporation. On December 31, 2021, ABC…
A: Shareholders also invest money in the company and in return they become the owners in proportion to…
Q: (A) For letters a to d, identify how much to add or deduct from the Investment in Associate account…
A: Since there are multi sub-parts, we will solve first three for you. To get the remaining sub-parts…
Q: On December 31, 2020, Hazel Company held 1,000 ordinary shares of X Co. in its portfolio of…
A: Fair value through OCI methods accounts the fair value adjustment through OCI.
Q: Perseverance Company received dividends from its investments in ordinary shares during the year 2019…
A: To arrange the funds, firm issues various securities and pays return on it. Dividend is an amount…
Q: On December 20, 2018, Ball Corporation purchased 30,000 shares of Pencil Company's shares at P100…
A: Trading securities are the securities in which the entity invests and held them for selling in the…
Q: On January 2, 2020, Theodora Company purchased 40,000 shares of Byzantine, Inc. stock at P100 per…
A: Solution:Total cost of investment = Purchase cost + Brokerage fee - dividend= 40000*100 + 120000 -…
Q: During 2020, Maria Company purchased trading securities with the following cost and market value on…
A: Given information Security B = 10,000 shares Sold at p150 per share Trading investments are…
Q: The condensed balance sheet as of December 31, 2021 of Rain Corporation and Sun Corporation are: On…
A: There are two methods for accounting for investments in subsidiary A. Equity Method Accounting B.…
Q: 2020 Apr. 1 Paid $119,000 to buy a 90-day term deposit, $119,000 principal amount, 7.0%, dated…
A: 1. To Record the collection of term deposits and interest earned. (Jul 03, 2020) Journal Entry in…
Q: Z Corporation has the following transactions relating to its investment during 2020: Jan 5 Acquired…
A: SOLUTION- INCOME STATEMENT- IT CAN BE DEFINED AS THE FINANCIAL STATEMENT THAT IS USED FOR THE…
Q: On January 2, 2020, Theodora Company purchased 40,000 shares of Byzantine Inc. stock at P100 per…
A: Introduction:- Calculation of total cost of investment as follows:- Total cost of investment =…
Q: 2021 Feb. 16 Sold the remaining Blue Balloon shares at $27.00. Prepare journal entries 1.…
A: Date Particulars Debit($) Credit($) 01 Sep 2020 Cash A/C…
Q: Assume that, on January 1, 2021, Everest Corporation paid $1,656,000 for its investment in 82,800…
A: Investment value at end = Value of investment + Percentage of investment ( Net income - Dividend…
Q: In October 2018, TLT Bhd decided to invest its idle cash in the shares of SGS Bhd. Therefore, on 1…
A: Investment Valued through Profit and Loss: Under the IFRS 9, financial assets are measured through…
Q: On January 1, 2021, Point, Inc. purchased 10% of lona Co.'s common stock. Point purchased additional…
A: Answer - The amount of investment income to be reported in the year 1 income statement - When an…
Q: In 2020, Angela Company held the following investments in ordinary shares: • 25,000 shares of…
A: When company receives dividends from its investment, dividend income gets credit to dividend income…
Q: On January 4, 2021, Runyan Bakery paid $360 million for 10 million shares of Lavery Labeling Company…
A: The equity method is a bookkeeping procedure utilized by an organization to record the benefits…
Q: ABC Corporation has an investment of 4,000,000 shares in XYZ Corporation. On December 31, 2021, ABC…
A: Normally dividend in form of stock is to be issued when company has less cash reserves.
Q: Lexington Co. has the following securities outstanding on December 31, 2020 (its first year of…
A:
Q: Live Large Inc. had the following transactions involving non-strategic investments during 2020.…
A: Step2 in solution.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- 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 lossWaseca 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.(A) For letters a to d, identify how much to add or deduct from the Investment in Associate account of ABC based on the following transactions or events: a. Dec. 1, 2020 - Bought 3,000 X Corp. shares at P200 per share. The total ordinary shares outstanding of X is 100,000 and each had a par value of P150. b. Jan. 1, 2021 - Bought an additional 15,000 shares of X Corp. for a total price of P3,800,000. The original shares are valued at P250 each. On the same date, ABC started providing essential technical information to X and that both corporations have an interchange of managerial personnel. Significant influence is established. There were no changes in the ordinary shares outstanding. c. Net income reported for the year by the associate was P2,500,000. Adjust net income with data from letter d. d. Dividends declared by X are P2,000,000. It has 90,000 6%, P100-par value preference shares outstanding which are cumulative and participating. No dividends were declared in the previous…
- For numbers 1 to 11, identify how much to add or deduct from the Investment in Associate account of ABC based on the following transactions or events: 1. Dec. 1, 2020 ‐ Bought 3,000 X Corp. shares at P200 per share. The total ordinary shares outstanding of X is 100,000 and each had a par value of P150. 2. Jan. 1, 2021 ‐ Bought an additional 15,000 shares of X Corp. for a total price of P3,800,000. The original shares are valued at P250 each. On the same date, ABC started providing essential technical information to X and that both corporations have an interchange of managerial personnel. Significant influence is established. There were no changes in the ordinary shares outstanding. 3. Net income reported for the year by the associate was P2,500,000. 4. Dividends declared by X is P2,000,000. It has 90,000 6%, P100‐par value preference shares outstanding which are cumulative and participating. No dividends were declared in the previous year. 5. As of Jan. 1, 2021, the fair value of the…On 2, 2019, I AM DETERMINED CO. purchased 10,000 shares of CPA CO. at P56 plus broker’s commission of P4 per share. The investment is FVTOCI. During 2018 and 2020, the following events occurred regarding the investment: 12/15/19 CPA CO. declares and pays a P2.20 per share dividend 12/31/19 The market price of CPA CO. stock is P52 per share at year-end 12/01/20 CPA CO. declares and pays a dividend of P2 per share 12/31/20 The market price of CPA CO. stock is P55 per share at year-end The net unrealized loss at December 31, 2020 in accumulated OCI in shareholders' equity isOn July 1, 2021, JKJ Corporation purchased 100 common shares of JMK Ltd. at $20 per share. JKJ expected to be able to sell this investment within a year at $28 per share. Dividends of $1 per share were declared and paid on August 1, 2021. On December 31, 2021, the fair value of each share was $23. What balance was shown in the investment account on JKJ's balance sheet on December 31 (year end)? $2,300 $2,400 $2,000 $2,800
- Following is a list of investments owned by Ivanhoe Ltd., as of the company’s year-end, December 31, 2020: Investment No. Shares Cost Fair Value HFX Corporation 1,000 $8.00 $7.10 FDY Ltd. 3,000 6.90 6.95 CTN Corporation 4,600 5.00 5.80 On January 15, 2021, Ivanhoe sold the shares in CTN Corporation for $6.25 per share. Prepare the journal entries required to record the sale, assuming the company uses the fair value through other comprehensive income without recycling method. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit Jan. 15, 2021 (To adjust to current fair value) (To record the sale of shares) (Reclassification…Following is a list of investments owned by Martinez Ltd., as of the company’s year-end, December 31, 2020: Investment No. Shares Cost Fair Value HFX Corporation 1,200 $9.00 $8.20 FDY Ltd. 2,100 6.50 6.55 CTN Corporation 3,700 7.00 7.60 On January 15, 2021, Martinez sold the shares in CTN Corporation for $8.10 per share. Prepare the journal entries required to record the sale, assuming the company uses the fair value through other comprehensive income without recycling method. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit Jan. 15, 2021 (To adjust to current fair value) (To record the sale of shares) (Reclassification…At what amount is the investment in securities reported on the balance sheet under each of these methods at December 31, 2026? What is the total net income reported in 2026 under each of these methods?Kingbird Donald Inc. acquired 20% of the outstanding common stock of Theresa Ivanhoe Inc. on December 31, 2025. The purchase price was $1,205,000 for 48,200 shares. Ivanhoe Inc. declared and paid an $0.85 per share cash dividend on June 30 and on December 31,2026 . Ivanhoe reported net income of $692,000 for 2026 . The fair value of Ivanhoe's stock was $28 per share at December 31 ,2026, Assume that the security is a trading security.
- The following investment-related transactions were completed by LackyCorp. during 2020 - Purchased 30,000 shares of Y Company ordinary shares at P125 per share plus brokerage fees of P28,500. Lackyclassified this stock as non-trading security (FVTOCI) -Sold 4,500 shares of Y Company at P132 per share. a.At what amount should the Y Company shares be measured on initial recognition? b.How much is the realized gain or loss on the sale of Y Company shares?6. On January 2, 2020, Theodora Company purchased 40,000 shares of Byzantine, Inc. stock at P100 per share. Brokerage fees amounted to P120,000. A P5 dividend per share of Byzantine, Inc. shares had been declared on December 15, 2019, to be paid on March 31, 2020 to shareholders of record on January 31, 2020. The shares are designated as FVTOCI. On December 31, 2020 the investment has a fair value of P4,200,000. How much should be recognized in the 2020 other comprehensive income related to these securities? Group of answer choices P280,000 P200,000 P400,000 P80,000On January 25, 2023, Martin Ltd. purchased 5,000 common shares of NBC (National Bank of Canada) for $30 each. During the remainder of 2023, Martin received $1.60/share in dividends and NBC's earnings per share were $4.50. The closing price of the shares on the fiscal year-end date of December 31, 2023, was $31. Required Assume that Martin classified the investment as FVPL. a. At what value should the company report the NBC shares on its December 31, 2023, balance sheet? b. How much income should the company report in relation to these shares? c. How much other comprehensive income (OCI) should Martin report in relation to these shares? Requirement a. Assume that Martin classified the investment as FVPL. At what value should the company report the NBC shares on its December 31, 2023, balance sheet? The company should report the NBC shares at per share for a total of $ at December 31, 2023. Requirement b. Assume that Martin classified the investment as FVPL. How much income should the co