On January 1, 2019, Tiger Company purchased 6,720 shares of Eagle Corporation’s common stock when Eagle had 22,400 shares outstanding. On that date, the following information pertained to Eagle:   Eagle Corporation Balance Sheet January 1, 2019 1   Book Value Fair Value 2 Depreciable assets (remaining life, 8 years) $600,000.00 $620,000.00 3 Other non-depreciable assets 290,000.00 300,000.00 4 Total $890,000.00 $920,000.00 5 Liabilities $300,000.00 $330,000.00 6 Shareholders’ equity 590,000.00   7 Total $890,000.00         During 2019, Eagle earned net income of $120,000 and paid total dividends of $48,000. Required:   Prepare the journal entries of Tiger related to its share of Eagle’s net income and dividends in 2019.

Q: On December 31, 2022, Akron, Incorporated, purchased 5 percent of Zip Company's common shares on the…

A: Answer:- A balance sheet basically represents the assets, liabilities and shareholder equity of a…

Q: Chapman Company obtains 100 percent of Abernethy Company's stock on January 1, 2023. As of that…

A: Consolidation is an activity in which financial statements of a parent and its subsidiary should be…

Q: On December 31, 2019, Akron, Inc., purchased 5 percent of Zip Company's common shares on the open…

A: The accounting method of amortisation is used to distribute the cost of using a long-term asset…

Q: estments 70,000 300,000 life) 240,000 nite life) 110,000 90,000 ture 12/31/22) 180,000 120,000…

A: Particulars Amount Life Annual Amortization Purchase Price of Jackson Co. $588,000     Book…

Q: On January 1, 2020, Choco Co. pays $96,000 to acquire 30% of the voting common stock of Cake Inc.…

A: Under equity method, the debit balance of investment account will be affected b positively by income…

Q: Parent Company acquired all of Sub Company’s outstanding stock on January 1, 2019 for $600,000 cash.…

A: Statement for Calculation of Excess Value Paid as on 1/1/2019 Purchase price 600000 Book value…

Q: Pharoah Company purchased 200 of the 1000 outstanding shares of Sheridan Company's common stock for…

A: The balance in equity investment refers to the value of an investment in a company's stock or…

Q: Chapman Company obtains 100 percent of Abernethy Company's stock on January 1, 2020. As of that…

A: Chapman Company obtains 100% of Abernethy Company's stock as on 1st Jan 2020. The Stock is acquired…

Q: Chapman Company obtains 100 percent of Abernethy Company's stock on January 1, 2023. As of that…

A: Consolidation is an activity in which financial statements of a parent and its subsidiary should be…

Q: Following are selected account balances from Peregrine Company and Sprano Corporation as of December…

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

Q: On January 2, 2021, Marzelle Corp. purchased 30% of the voting common stock of Hoffman Co., paying…

A: Amortization represents the reduction in the value of an asset over a period of time. It is…

Q: Chapman Company obtains 100 percent of Abernethy Company's stock on January 1, 2023. As of that…

A: In 2023, Chapman Company acquired 100 percent of Abernethy Company's stock, integrating Abernethy's…

Q: Below are Lebnas Corp.’s 2019 income statement and comparative balance sheet at 12/31/2019 and…

A: Calculate dividend declared during the period as follows: The Dividend of $87,000 is paid during…

Q: On January 1, 2019, in its first year of operation, Olson Company acquired some of the outstanding…

A: As the Oslon company acquired 25% Bryant company, which means Oslon can exercise  significant…

Q: On July 1, 2024, Clearwater Incorporated purchased 9,300 shares of the outstanding common stock of…

A: Journal entry:The recording of day-to-day business transactions in a journal or books of account is…

Q: Pharoah Company purchased 200 of the 1000 outstanding shares of Sheridan Company's common stock for…

A: Equity investment: It refers to the money invested in purchasing the equity shares of a company in…

Q: Chapman Company obtains 100 percent of Abernethy Company's stock on January 1, 2020. As of that…

A: Investment in Associates and Joint venture and SubsidiaryEquity Accounting method - This method is…

Q: Required: Prepare consolidation worksheet entries for December 31, 2023, and December 31, 2024.…

A: Eliminating Entries:While consolidating income statements and balance sheet, come entries are…

Q: Cullumber Company acquired 28% of the outstanding common stock of Grinwold Inc. on January 1, 2020,…

A: The cost method adjust the investment on the basis of fair value of investment.  The equity method…

Q: On January 1, 2020, Sarasota Corporation purchased 20% of the common shares of Ivanhoe Company for…

A: Journal entry Journal entry refers to an entry that is made to record the financial transactions in…

Q: Chapman Company obtains 100 percent of Abernethy Company's stock on January 1, 2020. As of that…

A: Consolidation:Consolidation indicates the acquisition strategy by which one company takes over the…

Q: On December 31, 2019, Akron, Inc., purchased 5 percent of Zip Company's common shares on the oper…

A: Investment in Associates and Joint venture and Subsidiary Equity Accounting method - This method is…

Q: Prepare a schedule to compute the difference between book value of equity and the value implied by…

A: Parent company - The parent company is an entity that owns or controls another entity, known as a…

Q: n January 3, 2023, Sheppard Corporation purchased 25% of Meredith Corporation's common stock for…

A: The objective of the question is to calculate the balance in the investment account of Sheppard…

Q: Chapman Company obtains 100 percent of Abernethy Company's stock on January 1, 2023. As of that…

A: Journalizing is one of the important processes of recording all the financial transactions in the…

Q: Problem 1: On January 1, 2020, Pond Co. acquired 40% of the outstanding voting common shares of Ramp…

A: When a company invest in another company, then it has to record some entries in its books of…

Q: Required: Prepare consolidation worksheet entries for December 31, 2023, and December 31, 2024.…

A: The parent company acquires 100% interest in its subsidiary. So, there is no non-controlling…

Q: M.T. Glass, Inc. purchased the following investments on January 1, 2028: 1. 21,000 shares…

A: Introduction:If an investor company makes an investment between 20 to 50% in the investee company…

Q: Compute the AAP amortization for 2019.

A: The amortization is the method on which the value of an intangible asset is decreased and thus the…

Q: Chapman Company obtains 100 percent of Abernethy Company's stock on January 1, 2023. As of that…

A: A business combination occurs when two or more entities come together to form a single reporting…

Q: Chapman Company obtains 100 percent of Abernethy Company’s stock on January 1, 2023. As of that…

A: The objective of the question is to prepare the consolidation worksheet entries for Chapman Company…

Q: On January 1, 2020, Choco Co. pays $96,000 to acquire 30% of the voting common stock of Cake Inc.…

A: Under the equity method, the amortization is provided on the excess amount of asset over its book…

Q: Carla Vista Company purchased 200 of the 1000 outstanding shares of Metlock Company's common stock…

A: Equity Investment Equity Investment is the money that is invested in a company through buying of…

Q: On January 1, 2020, Sheffield Corporation purchased 37% of the common stock outstanding of Pharoah…

A: Sheffield Corporation purchased 37% of the Pharoah Corporation. So 37% of the net income of Pharoah…

Q: Matthews Co. acquired all of the common stock of Jackson Co. on January 1, 2020. As of that date,…

A: Particulars. Amount Life Annual Amortization Purchase Price of Jackson Co. $588,000    Book value.…

Q: Miller Corporation acquired 30% of the outstanding common stock of Crowell Corporation for $160,000…

A: Dividend (31st march)=Amount paid×30%=$50,000×30%=$15,000

Q: On January 1, 2024, Coronado Company purchased 8,208 shares of Whispering Company's common stock for…

A: Parent company - The parent company is an entity that owns or controls another entity, known as a…

Q: aid-in capital et) (4-year renaining Life) rt-term investments 50, 000 214, 000 82, 250 250, 000…

A: Fair value allocation and annual excess amortizations:       Abernethy fair value…

Q: On December 31, 2019, Akron, Inc., purchased 5 percent of Zip Company's common shares on the open…

A: For accounting purposes, both the equity method and fair-value accounting method can be used to…

Q: On December 31, 2019, Akron, Inc., purchased 5 percent of Zip Company's common shares on the open…

A: Equity method of Accounting: The equity technique is used to account for company investments. This…

Q: On December 31, 2019, Akron, Ic., purchased 5 percent of Zip Company's common shares on the open…

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

Q: 1. Perform the preliminary calculation to determine the excess of fair value over book value for the…

A: Particulars  Amount ($) Cost of acquisition ( $6,410,000 * 35%) 2,278,500 Less: 35% of Book…

Q: On December 31, 2019, Akron, Inc., purchased 5 percent of Zip Company's common shares on the open…

A: Under the equity method, the investor initially records the investment at cost and subsequently…

Q: Chapman Company obtains 100 percent of Abernethy Company's stock on January 1, 2020. As of that…

A: Journal - A journal is a thorough account that documents all of a business's financial activities.…

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.