Nizwa Corp maintains the investment account in Al Izz Corp using the equity method. During 2019, Al Izz Corp earned income of $100,000 and declared and paid dividends of $30,000. Required: Calculate the balance of the investment account by the end of 2019.

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A: The question is based on the concept of Financial Accounting.

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A: SOLUTION-A THE EQUITY INCOME TO BE RECOGNIZED BY COMPANY K DURING EACH OF THIS YEARS- PARTICULARS…

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A: Under the equity method of recording the investment is that;First of all the percentage of…

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A:

Q: Angkasa Corporation paid Rp5,000,000 for 80% interest on Langit Biru Corporation on January 1, 2020.…

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A: Equity method: Equity method is the method used for accounting equity investments which claim a…

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A: Solution Common stock can be defined as securities that represent individuals ownership in a said…

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A: The question is based on the concept of financial accounting.

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A: The Equity in income of S Inc. for 2019 is = $21120.

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A:

Q: On January 1, 2021, Pine Company owns 40 percent (76,000 shares) of Seacrest, Ic., which it…

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A: Income earned 2019=Income ×612=$641,000×612=$320,500

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A: In business combination, when an asset is acquired  then it should be  measured at Fair value

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A: Equity method:   Common accounting technique used by the organization to get the access on profits…

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Q: On January 2, 2019, ABC Co. acquired 80% of the outstanding common stock of Shade Co. for ₱1,344,000…

A: Consolidated financial statements are a set of financial statements prepared for a group company…

Q: On January 1, 2024, Pine Company owns 40 percent (124,000 shares) of Seacrest, Incorporated, which…

A: Equity method: Equity method is the method used for accounting equity investments which claim a…

Q: On July 1, 2019, Killearn Company acquired 110,000 of the outstanding shares of Shaun Company for…

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A: Investment in any other company can be reported by using Equity method or fair value method.

Q: In January 2020, Marcus, Inc., acquired 20 percent of the outstanding common stock of Lily, Inc.,…

A: The question is based on the concept of financial accounting.

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A: a. Step: 1 Equity Income 2019 A Basic equity accrual ($640,000 × 1/2 year × 40%)…

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.