ss Question 3:On June 10, 20X8, Tower Corporation acquired 100 percent of Brown Company's common stock.Summarized balance sheet data for the two companies immediately after the stock acquisition are asfollows:ItemCashAccounts ReceivableInventoryBuildings & Equipment (net)Investment in Brown StockTotalAccounts PayableBonds PayableCommon StockRetained EarningsTotalTower Corp.$ 15,00030,00080,000120,000100,000$345,000$ 25,000150,00055,000115,000$345,000Brown CompanyBook Value$ 5,00010,00020,00050,000$85,000$3,00025,00020,00037,000$85,000Fair Value$5,00010,00025,00070,000$110,000$3,00025,000$ 28,000Required:Give the consolidation entries required to prepare a consolidated balance sheet immediatelyafter the acquisition of Brown Company shares. Worksheet is not required.

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

On June 10, 20X8, Tower Corporation acquired 100 percent of Brown Company's common stock. Summarized balance sheet data for the two companies immediately after the stock acquisition are as follows: Item Cash Accounts Receivable Inventory Tower Corp. $ 15,000 30,000 80,000 Brown Company Book Value $5,000 10,000 20,000 Fair Value $5,000 10,000 25,000

On June 10, 20X8, Tower Corporation acquired 100 percent of Brown Company's common stock. Summarized balance sheet data for the two companies immediately after the stock acquisition are as follows: Item Cash Accounts Receivable Inventory Tower Corp. $ 15,000 30,000 80,000 Brown Company Book Value $5,000 10,000 20,000 Fair Value $5,000 10,000 25,000

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter14: Intercorporate Investments In Common Stock

Section: Chapter Questions

Problem 16E

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Question 3: On June 10, 20X8, Tower Corporation acquired 100 percent of Brown Company's common stock. Summarized balance sheet data for the two companies immediately after the stock acquisition are as follows: Item Cash Accounts Receivable Inventory Buildings & Equipment (net) Investment in Brown Stock Total Accounts Payable Bonds Payable Common Stock Retained Earnings Total Tower Corp. $ 15,000 30,000 80,000 120,000 100,000 $345,000 $ 25,000 150,000 55,000 115,000 $345,000 Brown Company Book Value $ 5,000 10,000 20,000 50,000 $85,000 $3,000 25,000 20,000 37,000 $85,000 Fair Value $5,000 10,000 25,000 70,000 $110,000 $3,000 25,000 $ 28,000 Required: Give the consolidation entries required to prepare a consolidated balance sheet immediately after the acquisition of Brown Company shares. Worksheet is not required.
Question Armadillo Enterprises acquired the following equity investmentsat the beginning of year 1 as trading investments. Description Number of shares Market price per share Total price Finestra Company 15,000 X $25 $387,500 BVD Company 20,000 x$18 |S360,000 Market values at theend of Years 1 &2 are presented below: Market/Fair Value End of year 1 End of year 2 Finestra Company IS19 $23 BVD Company $22 $28 REQUIREMENTS: ( Prepare the journal entry to record the acquisition of theinvestments. Prepare the adjusting journal entry required at the end of year1. Armadillo Enterprises sells 15,000 shares of BVD Company for $16at the beginning of year 2. Prepare the journal entry to record thesale. Prepare the adjusting journal entry required at the end of year2. Assume that ArmadilloEnterprises now holds these investments asavailable-for-sale. Prepare the journal entry to record the acquisition of theinvestments. Prepare the adjusting journal entry required at the end of year1. Armadillo…
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Required information On January 1, 20X2, Power Company acquired 80 percent of Strong Company's outstanding stock for cash. The fair value of the noncontrolling interest was equal to a proportionate share of the book value of Strong Company's net assets at the date of acquisition. Selected balance sheet data at December 31, 20X2 are as follows: Total Assets Liabilities Common Stock Retained Earnings Total Liabilities & Stockholders' Equity Multiple Choice O $35,200 Based on the preceding information, what amount should be reported as noncontrolling interest in net assets in Power Company's December 31, 20X2, consolidated balance sheet? $48,200 $76,800 Power $ 564,000 O $112,800 180,000 150,000 234,000 $ 564,000 Strong $ 216,000 65,000 80,000 96,000 $ 241,000
Armadillo Enterprises acquired the following equity investmentsat the beginning of year 1 as trading investments. Description Number of shares Market price per share Total price Finestra Company 15,000 x $25 $387,500 BVD Company 20,000 X$18 $360,000 Market values at theend of Years 1 &2 are presented below: Market/Fair Value End of year 1 End of year 2 Finestra Company $19 $23 BVD Company |$22 $28 REQUIREMENTS: Prepare the journal entry to record the acquisition of theinvestments. Prepare the adjusting journal entry required at the end of year1. Armadillo Enterprises sells 15,000 shares of BVD Company for $16at the beginning of year 2. Prepare the journal entry to record thesale. Prepare the adjusting journal entry required at the end of year2. Assume that ArmadilloEnterprises now holds these investments asavailable-for-sale. Prepare the journal entry to record the acquisition of theinvestments. Prepare the adjusting journal entry required at the end of year1. Armadillo Enterprises…
Accounting for share investmentsCheck Figure 2: Carrying value per share, $19.63 River Outdoor Supply Corporation( River Corp.) was organized on January 2, 2023. River Corp. issued 50,000 common shares for $250,000 on that date.The following investments transactions and events subsequently occurred:2023Jan 12 River Corp. acquired 12,000 shares of Turner Ltd. at a cost of $250,000( including transaction fees of $50). This investment represented 24% of Turner's outstanding shares.Mar. 31 Turner Ltd. declared and paid a cash dividend of $1.00 per share.Dec. 31 Turner Ltd. announced that its profit for 2023 was $125,000.2024Aug 15 Turner Ltd. declared and paid a cash dividend of $0.80 per share.Dec 31. Turner Ltd. announced that its loss for 2024 was $95.000.2025Jan.6 River Corp. sold all of its investments in Turner Ltd. for $230,000 cash.Assume that River Corp. has significant influences over Turner Ltd. with its 24% share.Required1. Give the entries to record the preceding transactions…
INVESTMENT IN ASSOCIATE 1. On January 1, 2021 Dona Company purchased 10% of another entity’s outstanding ordinary shares for P6,000,000. The investment classified as nonmarketable equity security and accounted for under the cost method. The following data pertain to investee’s operations for 2021 and 2022:2021 2022Net income 3,000,000 4,000,000Dividend paid none 9,000,000 What amount should Dona Company report as dividend income in its 2022 income statement?
A 135.
1. On January 1, 2021 Dona Company purchased 10% of another entity's outstanding ordinary shares for P6,000,000. The investment classified as nonmarketable equity security and accounted for under the cost method. The following data pertain to investee's operations for 2021 and 2022: 2021 2022 Net income 3,000,000 4,000,000 Dividend paid none 9,000,000 What amount should Dona Company report as dividend income in its 2022 income statement?