Movearound Pty Ltd had losses in Year 1. It, therefore, changed its business in Year 2 from being aremovalist to building renovations. Shares were issued to new shareholders in Years 2 and 3 to fund the newbusiness as follows:Shares Shares SharesShareholderYear 1 Year 2Year 3PushinShoveGroanMozzy224478642State which of the following statement is correct?Losses from Year 1 can be offset against profits in Years 2 and 3Losses from Year 1 cannot be offset against profits in Years 2 or 3Losses from Year 1 can be offset against profits in 3 onlyLosses from Year 1 can be offset against profits in any years going forward as the company satisfies the similarbusiness test.If there were losses in Year 2, it could be offset against Year 3 profits.If there were losses in Year 2, it could not be offset against Year 3 profits.

When Movearound Pty Ltd experienced losses in Year 1, they decided to change their business from…

Answered: Movearound Pty Ltd had losses in Year…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Fill in the dollar changes caused in the Investment account and Dividend Revenue or Investment Revenue account by each of the following transactions, assuming George Company unes (a) the fair value method and (b) the equity method for accounting for its investments in Tiffany Company (a) Fair Value Method. Transaction (b) Equity Method Investment Dividend Investment Investment Account Revenue Account Revenue 1. At the beginning of Year 1. George bought 40% of Tiffany's common stock at its book value. Total book value of all Tiffany's common stock was $1,000,000 on this date. 2. During Year 1, Tiffany reported $50,000 of net income and paid $50,000 of dividends. 3. During Year 2, Tiffany reported $100,000 of net income and paid $20,000 of dividends. 4. During Year 3, Tiffany reported a net loss of $15,000 and paid $5,000 of dividends. 5. Indicate the Year 3 ending balance in the Investment account, and cumulative totals for Years 1, 2, and 3 for dividend revenue and investment revenue.…
Check my work Zinco corp was a calendar year S corp. Zinco's status terminated on April 1 year 6 when Case corp became a shareholder. During year 6 ( 365 day calendar year) Zinco had nonseparately computed income of $310,250. If not election was made by Zinco, what amount of the income, if any was allocated to the S short year for year 6? a $233,750, b $155,125 c $76,500 d $0 My answer is c
Solve part e, f, g, h, i, and part j State what would happen to the equity of kicking horse oil Ltd. after each of the following independent transactions: e) The company invested $1,250,000 in oil exploration rights f) The company paid $2,000 interest on the bank loan g) The oil exploration rights were revalued at $5,000,000 h) In year 1, the company reported a loss of $5,000 i) In year 2, the company reported a net income of $200,000 j) At the end of year 2, the company paid dividend of $10,000 to the preference shareholders and $25,000 to the common shareholders
4.The amount of the investor's initial investment in Aspect Co's shares is $40,000. The investor has a 30% ownership interest to which the investor applies equity method. The table summarises the associate's profit (loss) for each year. At what amount will investor report its investment in Aspect Co in its consolidated statements of financial position at the end of each financial year? At the Profit (loss) of the The investment in the associate in the consolidated statement of financial position end of associate $'000 $'000 50 2 (180) 100
Give the necessary Journal Entries to record the following transactions : (a) A shareholder was holding 500 equity shares of $ 10 each of a company issued at 10% discount. He paid $ 2 on application, $ 3 on allotment but could not pay the first call of $ 3 per share and his shares were forfeited by the directors. These shares were reissued subsequently at a price of $ 7 per share. (b) A holds 200 equity shares of $ 10 each on which he paid $ 1 per share as application money. B holds 300 equity shares of $ 10 each on which he has paid $ 1 and $ 3 per share as application and allotment money respectively. Cholds 500 equity shares of $ 10 each on which he has paid $ 1 on application, $ 3 on allotment and $ 2 on first call. They all fail to pay their arrears and the second call of $ 2 per share and the directors, therefore, forfeited the shares. All these shares were reissued subsequently @ $ 11 per share as fully paid.
On February 11, Year 1, an individual 100 shares of stock at $10 per share. On June 11, Year 2, the individual sold the same 100 shares at $7 per share. What is the character of gain or loss on the sale? $300 long-term capital gain. $300 long-term capital loss. $300 short-term capital gain. $300 short-term capital loss
At December 31, 200F, a corporation had total shareholders’ equity of P 4,000,000 including a Retained Earnings balance of P 1,000,000. At the beginning and end of 200F, the share capital account of the corporation remained unchanged. Profit for 200F was P 800,000. The corporation declared cash dividends of P 300,000 at December 31, 200F. How much was the Retained Earnings balance as at January 1, 200F? Choices; 300,000 500,000 1,000,000 1,100,000
The opening balance of retained earnings for a company was $1328424. During the year it earned a net income of $509389 and shareholders invested an additional $613909 for shares. The ending balance of retained earnings was $1645010. How much did the company pay out in dividends during the year? Select one: a. $192803 b. $0 c. $806712 d. $104520
For each transaction, indicate the change, if any, in total assets and total equity. If equity changes, indicate whether the change was reflected as a component of net income, or directly within the stockholders' equity portion of the balance sheet. Remember that the change in total assets must agree with the change in total equity. How would I complete the table?
am. 76.
a. a. Analyze each transaction above by showing its effects on the accounting equation-specifically, identify the accounts and amounts (including + or -) for each transaction. b. C. Required information [The following information applies to the questions displayed below.] C. a. On March 22, purchased 880 shares of RPI Company stock at $24 per share. Duke's stock investment results in it having an insignificant influence over RPI. b. On July 1, received a $3 per share cash dividend on the RPI stock purchased in part a. c. On October 8, sold 440 shares of RPI stock for $34 per share. Assets = = = = = = Liabilities + + + + + + Equity
answer in text form please (without image), Note: .Every entry should have narration please

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