M13ABD12 E17.16 (LO 2, 3) (Fair Value and Equity Method Compared) Jaycie Phelps Inc. acquired 20% of3 the outstanding common stock of Theresa Kulikowski Inc. on December 31, 2020. The purchase price4 was $1,200,000 for 50,000 shares. Kulikowski Inc. declared and paid an $0.85 per share cash dividend on5 June 30 and on December 31, 2021. Kulikowski reported net income of $730,000 for 2021. The fair value6 of Kulikowski's stock was $27 per share at December 31, 2021.8 Instructions9 a. Prepare the journal entries for Jaycie Phelps Inc. for 2020 and 2021, assuming that Phelps cannot10 exercise significant influence over Kulikowski.11 b. Prepare the journal entries for Jaycie Phelps Inc. for 2020 and 2021, assuming that Phelps can exer-12 cise significant influence over Kulikowski.13 C. At what amount is the investment in securities reported on the balance sheet under each of these methods14 at December 31, 2021? What is the total net income reported in 2021 under each of these methods?15161718192021E17.5E17.11E17.12Sheet4120e 12:01ENG O 428°C pile2021/10/15

Journal entries Total net income to be reported in 2021

Answered: M13 C E 2 E17.16 (LO 2, 3) (Fair Value…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

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Shamrock Inc. acquired 20% of the outstanding common stock of Theresa Kulikowski Inc. on December 31, 2020. The purchase price was $ 1,245,600 for 51,900 shares. Kulikowski Inc. declared and paid an $ 0.85 per share cash dividend on June 30 and on December 31, 2021. Kulikowski reported net income of $ 699,000 for 2021. The fair value of Kulikowski’s stock was $ 27 per share at December 31, 2021.
Pronghorn Inc. acquired 20% of the outstanding common stock of Theresa Kulikowski Inc. on December 31, 2020. The purchase price was $1,243,200 for 51,800 shares. Kulikowski Inc. declared and paid an $0.75 per share cash dividend on June 30 and on December 31, 2021. Kulikowski reported net income of $786,000 for 2021. The fair value of Kulikowski's stock was $27 per share at December 31, 2021.
The investments of Harlon Enterprises included the following cost and fair value amounts ($ 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 milion
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On March 1, 2019, Carol Company bought the common shares of two companies with a 20% ownership share in each as follows: Company Name Cost company Jane 30000 company Peter 50000 Total 80000 On December 1, Company C received a dividend of $ 18,000 from its investment in the common stock of Company B, and Company A did not distribute a dividend. As at December 31, 2019, the fair value of the available-for-sale equity securities portfolio was as follows: Company Name Cost company Jane 24000 company Peter 60000 Total 84000 On January 1, 2020, Carol Company bought 20,000 shares of Dalia Company at a price of $ 1 per share and paid $ 4,000 brokerage and VAT on the brokerage value of 5%. On June 10, 2020, Company Peter sold all of its investment to Company Jane for $ 40,000. As at December 31, 2020, the fair value of the available-for-sale equity securities portfolio was as follows: Company Name Cost company Peter…
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es On March 31, 2024, Chow Brothers, Incorporated, bought 6% of KT Manufacturing's capital stock for $54.8 million. KT's net income for the year ended December 31, 2024, was $81.6 million. The fair value of the shares held by Chow was $38.2 million at December 31, 2024. KT did not declare or pay a dividend during 2024. Required: 1. Prepare all appropriate journal entries related to the investment during 2024. 2. Assume that Chow sold the stock on January 20, 2025, for $31.6 million. Prepare the journal entries to record the sale. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare all appropriate journal entries related to the investment during 2024. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5), View transaction list Journal entry worksheet 1 2 3 Record the entry for…
“IFRS 10 Consolidated Financial Statements states that there are few ways to ascertain if the investor ‘controls’ and ‘influences’ its investees.”
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On June 30, 2019, Cassiopeia purchased the following shares at a total cost of P3,600,000: Aquila Grus Indus Number of shares 50,000 100,000 200,000 Total fair value 450,000 1,350,000 1,800,000 At the end of the year, the fair values of the shares are as follows: Aquila Grus Indus P12 16 6 On June 30, 2020, Cassiopeia sold half of its holdings in Indus at P7.50 per share. Prepare the journal entries in the books of Cassiopeia given the following independent assumptions: 1. SEPARATE JOURNAL ENTRIES for shares classified as Financial Asset at Fair Value through Profit or Loss (P/L) & Fair Value through Other Comprehensive Income (OCI

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