On January 3, 2023, Sheppard Corporation purchased 15% of Meredith Corporation's common stock for $62,000. Meredith's net income for the years ended December 31, 2023 and 2024 were $18,000 and $56,000 respectively. Meredith declared no dividends during 2023; however, during 2024, the company declared a $70,000 dividend. On December 31, 2023, the fair value of Meredith's stock that Sheppard Corporation owned had increased to $73,000; in 2024, it increased again to $79,000. What will be the carrying value of the investment at the end of December 31, 2024? Group of answer choices $79,000 $135,000 $73,000 $62,000

Q: On January 1, 2020, Hockey Unlimited Inc. purchased 2,500 of the 10,000 outstanding common shares of…

A: Depreciation -Depreciation is a tool used by businesses to spread out the recognition of their…

Q: On December 31, 2020, GHI Corporation holds 50,000 shares of Harry Company with market value of…

A: Unrealized gain means the upsurge in the worth of an asset or security which is yet to sold for…

Q: On August 1, 2020, Swifty Corporation purchased 20% of the outstanding voting shares in WLT…

A:

Q: Parkovash, Incorporated, obtained 100 percent of Salerno Company's common stock on January 1, 2023,…

A: Investment means an asset purchased in expectation of earning a return on such investment in future…

Q: Jimin, Inc. purchased 40% of Hope Inc.’s outstanding ordinary shares on January 2, 2021, for…

A: Investment in an associate is calculated by the following equation:- Investment in associate =…

Q: David Corporation included $984,573 of fictitious sales in its sales revenue for 2016. This helped…

A: Presentation and Disclosure: Under this assertion, transactions have been classified and presented…

Q: On July 1, 2023, Jerry Corporation acquired 25% of the shares of Von, Inc. for P1,000,000. At that…

A: Note: Since you have posted a question with multiple sub-parts, we will solve first three subparts…

Q: On January 1, 2022, Plymouth Corporation acquired 80 percent of the outstanding voting stock of…

A: Consolidation worksheet Consolidation worksheet is used to prepare consolidated financial…

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: BuyCo, Inc., holds 24 percent of the outstanding shares of Marqueen Company and appropriately…

A: Equity investee means any Person in which the company or any subsidiary holds an ownership interest…

Q: Clayton Co. owned 30,000 ordinary shares of Dayton Corporation purchased in 2018 for P540,000. On…

A: Lets understand the basics. A property dividend is a type of dividend that replaces cash or stock…

Q: During the year 2021, David Company purchased 1,000 shares of Goliath Company ordinary shares at…

A: The calculation of holding gain that should David report in equity on December 31 is shown hereunder…

Q: On July 1, 2022, when Christ Company's total stockholders' equity was $360,000, Dina Corporation…

A: Goodwill is the value of the reputation of a firm built over time with respect to the expected…

Q: the amount paid, how much is attributable to goodwill?

A: Goodwill is an intangible asset that can't be touched but increases the image of the company. The…

Q: Parkovash, Incorporated, obtained 100 percent of Salerno Company's common stock on January 1, 2023,…

A: To address the requirements, let's break down each part and calculate accordingly. Part A:…

Q: On January 2, 2020, Megan, INC. acquired a 15% interest in Kiyosaki Corp. by paying P8, 000, 000 for…

A: In the given question, we are provided with the information of Megan, INC. which has acquired a 15%…

Q: Amie, Inc., has 153,000 shares of $2 par value stock outstanding. Prairie Corporation acquired…

A: The cost of investment includes the cash transferred, Fair value of assets transferred, fair value…

Q: Scott Company paid $2.800.000 to acquire all of the common stock of Dawn Corporation on January 1,…

A: In the preparation of consolidated financial statements, all inter-company (within the group)…

Q: On January 1, 2020, Pail Corporation acquired 75 percent of Sand Company's common stock for $525,000…

A: The question is related to Consolidated Financial Statements.The details of dividend paid by Parent…

Q: On August 1, 2023, Sandhill Corporation, which follows ASPE, purchased 20% of the outstanding voting…

A: The objective of the question is to prepare the journal entries for Sandhill Corporation for the…

Q: On March 31, 2024, Chow Brothers, Incorporated, bought 6% of KT Manufacturing's capital stock for…

A: The objective of the question is to prepare the journal entries for the investment made by Chow…

Q: time of purchase, WLT's net assets were undervalued by $80,400 and had a remaining useful life of 12…

A: Journal entries are typically based on source documents like invoices, receipts, and contracts,…

Q: BuyCo, Incorporated, holds 21 percent of the outstanding shares of Marqueen Company and…

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

Q: Twilight Co. paid $2,800,000 to acquire all of the common stock of Aurna Corp. on January 1, 2022.…

A: In the preparation of consolidated financial statements, all inter-company (within the group)…

Q: During 2022, Carla Vista Company purchased 17400 shares of Pharoah Corp. common stock for $391500 as…

A: Realized gain occurs when an asset is sold at a higher price than the cost price associated with the…

Q: Pearson company owns 42% of Stadium corporation. Pearson has a basis in the stock of Stadium…

A: The basis in stock means the share of the partner in the company's stocks. The basis in the stock…

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: 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: Agee Corporation acquired a 30% interest in Trent Company on January 1, 2018 for $490,000. At that…

A: In accordance with IAS 28 "If an entity holds 20% or more of the voting power (directly or through…

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: On January 3, 2023, Trycker, Incorporated acquired 40% of the outstanding common stock of Inkblot…

A: Dividends received relate to payments made by  pots to their shareholders out of their gains or…

Q: On January 1, 2024, Alamar Corporation acquired a 40 percent interest in Burks, Incorporated, for…

A: When the ownership percentage in other company is between 20% to 50%, then equity method of…

Q: At the beginning of 2022, Rose, Inc. purchased 8000 ordinary shares of Mark, Inc. for $800,000. The…

A: Investment in  shares can be accounted as per fvpl or fvocl

Q: On August 1, 2020, Coronado Corporation purchased 20% of the outstanding voting shares in WLT…

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

Q: On January 1, 2020, the Deluxe Corporation purchased equity securities to be held for trading…

A: Given, Acquisition cost of securities = P 2,000,000 Commission and taxes = P 50,000 Fair value of…

Q: On January 1, 2024, Alamar Corporation acquired a 38 percent interest in Burks, Incorporated, for…

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

Q: On January 1, 2022, Padme Corporation acquired another 18,000 common shares of Skywalker Company for…

A: Journla entry is the part of book keeping.

Q: On January 1, 2018, Enron Company purchased for cash 40 percent of Walt Company’s 450,000 shares of…

A:

Q: 1.)During the year 2021,David Company purchased 1,000 shares of Goliath Company ordinary shares at…

A: 1) Holding gain should David report in equity on Dec 31, 2021 :- 1,000 ordinary shares of Goliath…

Q: On January 1, 2021, Alamar Corporation acquired a 36 percent interest in Burks, Inc., for $198,000.…

A: As Mentioned question number 03 to answer so we are only answering that.

Q: On January 1, 2022, Old Corp. paid P500,000 for 20,000 shares of Hannah Corp.'s ordinary shares and…

A: Held for Trading security means a debt or equity investment that investors purchase with an…

Q: On January 1, 2024, Alamar Corporation acquired a 40 percent interest in Burks, Incorporated, for…

A: The objective of the question is to prepare the journal entries for Alamar Corporation for the year…

Q: On January 5, 2020, Splish Brothers Company purchased the following stock securities:   282 shares…

A: In the context of the given question, we need to prepare the journal entries of transactions of the…

Q: value and the fair value of John's net assets were $12.900.000 On July 1, 2026 Riverbed paid…

A: Accounting for investments is the process of systematically recording and reporting financial…

Q: On January 2, 2020, Megan, INC. acquired a 15% interest in Kiyosaki Corp. by paying P8, 000, 000 for…

A: Investment can be done in : Equity mutual funds Debt mutual funds Public Provident Fund Bank fixed…