On January 2, 2020, Howdy Doody Corporation purchased 17% of Ranger Corporation's common stock for $55,000. Ranger's net income for the years ended December 31, 2020, and December 31, 2021, were $11,000 and $56,000, respectively. During 2020, Ranger declared and paid a dividend of $67,500. On December 31, 2020, the fair value of the Ranger stock owned by Howdy Doody had increased to $72,000. How much should Howdy Doody show in the 2020 income statement as income from this investment?

Q: On January 1, 2021, Alamar Corporation acquired a 41 percent interest in Burks, Inc., for $233,000.…

A: Given: % investment is 41%  Amount = $233,000 Net income = $82,000 Cash dividend paid = $28,000

Q: Pharoah Co. acquired 25% of the 530,000 shares of outstanding common stock of Bloom Inc. on December…

A: Journal entryThe transactions that a company goes through in its day-to-day activities are recorded…

Q: Stellar Co. acquired 25% of the 500,000 shares of outstanding common stock of Overload Inc. on…

A: Securities available for sale are those debt or equity securities investments made by the company…

Q: Reported semiannual earnings of $120,000 for the first half of 2019

A: Dividend: It is the profit portion distributed among the shareholders and investors of the company.…

Q: On January 1, 2024, Alamar Corporation acquired a 35 percent interest in Burks, Incorporated, for…

A: When the ownership percentage is between 20% to 50%, then equity method of accounting for…

Q: On June 1, 2022, Madison Corporation purchased 100,000 shares of Steller, Inc., common stock for…

A: When a company acquires another company by purchasing the majority of shares, in such case the…

Q: Heidebrecht Design acquired 25% of the outstanding common stock of Sunland Company on January 1,…

A: Common Stock -A share of ownership in a firm that is designated as common stock may be associated…

Q: On January 1, 2020, Pharoah Co. purchased 24,000 shares (a 10% interest) in Elton John Corp. for…

A: Inter group company accounting deals with accounting of related entities such as subsidiaries,…

Q: a. Prepare worksheet entries to consolidate these two companies as of December 31, 2021. b. Compute…

A: The equity method is a method used by a company to record the profits earned by its investment in…

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: Novak Inc. acquired 20% of the outstanding common stock of Theresa Kulikowski Inc. on December 31,…

A: when the investor company is exercising significant control  more than 50 % over the investee…

Q: Matthew, Inc., owns 30 percent of the outstanding stock of Lindman Company and has the ability to…

A: The company purchasing the shares of another company is generally accounted for using the equity…

Q: Calculate Pearl's income from Sandlin for 2020. Calculate Pearl's income from Sandlin for 2021.…

A: When a business's stake in another business is estimated to be between 20 and 50 percent of the…

Q: On January 1, 2021, Sledge had common stock of $190,000 and retained earnings of $330,000. During…

A: The equity method is a method used by a company to record the profits earned by its investment in…

Q: Matthew, Inc., owns 30 percent of the outstanding stock of Lindman Company and has the ability to…

A: Part 1:

Q: n January 1, 2020, Marin Co. purchased 25,000 shares (a 10% interest) in Elton John Corp. for…

A: An investment is a type of asset that is produced with the goal of allowing money to grow. One, you…

Q: Jaycie Phelps Inc. acquired 25% of the outstanding common stock of Theresa Kulikowski Inc. on…

A: Let's address the requirements step by step:1. Amount of Equity Investments (Kulikowski) at December…

Q: Sarasota Inc. acquired 20% of the outstanding common stock of Theresa Kulikowski Inc. on December…

A: Solution-  Journal entries for Sarasota inc for 2020 and 2021 Assuming that Sarasota can not…

Q: Kingbird Corporation acquired a 38% interest in Blue Company on January 1, 2021, for $480,000. At…

A: Balance of equity investment = Cost of purchase + Share of net income - Share of dividend

Q: On January 1, 2021, ABC purchased 90% of the outstanding shares of JKL Company at a cost of…

A: On January 1, 2021, ABC purchased 90% of the outstanding shares of JKL Company at a cost of…

Q: purchased 2,000 shares of Potter Wholesale for $35 per share. Based on the percentage of outstanding…

A: The realised gain or loss is the difference between the Fair Value of Stock and Sale Value of Stock…

Q: rchandise during 2020 and used the rest during 2021. Lindman sold additional inventory costing…

A: These are the accounting transactions that are having a monetary impact on the financial statement…

Q: Presented below are summary financial data from Pebble Company’s annual report: Assume that the…

A: The question refers to five financial ratios. So first let us just have a brief on these financial…

Q: On January 1, 2021, Sledge had common stock of $280,000 and retained earnings of $420,000. During…

A: Journal entry is the process of documenting commercial transactions for the first time in the books…

Q: Waterway Inc. acquired 20% of the outstanding common stock of Theresa Kulikowski Inc. on December…

A: Cash dividend=Number of shares×Per share dividend=46,800×$0.90=$42,120

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.