On October 1, 2020, Puna Corporation acquired for cash all the outstanding common stock of Suna Company, which was not liquidated, Consolidated net income for the fiscal year ended December 31, 2021, includes net income of: a. Puna for twelve months, but no income from Suna until it declares a cash dividend b. Puna for twelve months and Suna for three months c. Puna for twelve months and Suna for twelve months d. Puna for three months and Suna for three months

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: 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 January 1, 2021, Knight Corporation purchases all the outstanding shares of Craig Company for…

A: Since there are many requirements, we answer only three requirement as per our guidelines, if you…

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: Marie Bhd acquired 80% of Donny Bhd ordinary share capital on 1 January 2019. As at 31 December…

A: WE SHOW DEBTOR AND CREDITOR BALANCES OF OUTSIDERS ONLY .  IN CONSOLIDATED ACCOUNTS INTRA DUES AND…

Q: Company acquires 35% of the 100,000 outstanding shares of Happy Company for P1,200,000.  Happy…

A: when company acquire  certain percentage of share in another company the company share the profit…

Q: On January 1, 2021, Entity F acquired 25% of the shares of Pot, Inc. for P425,000. At this date all…

A: Carrying amount of the investment in Pot, Inc. as of December 31,2021 will be calculated as follows:…

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: Denber Co. acquired 60% of the common stock of Kailey Corp. on September 30, 2019. For 2019, Kailey…

A: The acquisition means that the the company acquires the other company by acquiring more than 50%…

Q: On January 2, 2021, X Co. acquired all the ordinary share of Y Co. for P2,060,000. On that date, Y…

A: Goodwill is calculated when Purchase consideration paid to acquire a company (acquiree) is greater…

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, 2020, Abbey acquires 90 percent of Benjamin's outstanding shares. Financial…

A: Consolidation is the acquisition of many small companies by the larger company by obtaining the…

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, 2021 Pail corp acquired 80 percent of Sand Company's stock fo 640,000 cash.  The fair…

A: Dividend Declaration Dividend which is declared by the profit which are generated from the business…

Q: On January 1, 2020, Jumper Co. acquired all of the common stock of Cable Corp. for $540,000. Annual…

A: Investment in common stock means purchasing of common stock of the company. The company generally…

Q: On January 2, 2022, Promenade Company purchased 25% of Twilight Company'S ordinary shares: no…

A: Solution Concept Under the equity method , the value at which is the investment is carried is Cost +…

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

A: Dividend = Total dividend paid x 36% = $24000 x 36% = $8,640

Q: On January 1, 2019, Spring Co. purchased a 25% interest in Fall Inc. for $500,000. For the year…

A: The equity method is used to account for investments in common stock. It is used to record the…

Q: On July 1, 2021, Fontaine Company purchased for cash 40% of the outstanding common stock of Knoblett…

A: Investments: Companies invest in stocks and bonds of other companies or governmental entity to…

Q: At the beginning of 2019, Enif Co. purchased 100,000 of Cetus Co.'s ordinary shares for P3,000,000.…

A: Journal entries in the books of Enif Date particulars debit credit Beginning jan 2019 ordinary…

Q: Miller Corporation acquired 30% of the outstanding common stock of Crowell Corporation for $170,000…

A: Investment in Associate occurs if one company purchases another company's share of stock…

Q: On January 1, 2021, Alamar Corporation acquired a 42 percent interest in Burks, Inc., for $185,000.…

A: Introduction: Journal: Recording of a business transactions in a chronological order. First step in…

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

A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…

Q: An investor company purchased 60,000 of the 500,000 outstanding shares of the investee company's…

A: Given the following information: An investor company purchased 60,000 of the 500,000 outstanding…

Q: On January 1, 2020, Abbey acquires 90 percent of Benjamin's outstanding shares. Financial…

A: Calculation of income tax expense and income tax payable in case:  if Abbey and Benjamin file a…

Q: On January 1, 2020, Abbey acquires 90 percent of Benjamin's outstanding shares. Financial…

A: The question asked to compute the consolidated tax, and separate tax payable.   Consolidations:…

Q: On March 1, 2022, Dolor Company purchased 5,000 shares of Susan Incorporated paying P12 each share…

A: As per IAS 39, Financial instruments recognition and measurement,  Their is an irrevocable…

Q: On January 1, 2021, Alamar Corporation acquired a 36 percent interest in Burks, Inc., for $218,000.…

A: Share in income  = net income  x holding % = 76000*36% = $27,360

Q: On January 2, 2021, Zwick Company purchased 15% of Handy Corporation's common stock for $51,000.…

A: When the investment company uses fair value method for its investment, it recognise two incomes in…

Q: On July 1, 2019, Joltik Company purchased 80% of the outstanding shares of Galvantula Company at a…

A: SOLUTION NET INCOME REFERS TO THE AMOUNT AN INDIVIDUAL OR BUSINESS MAKES AFTER DEDUCTING COSTS ,…

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

A: Solution:- Preparation of journal entry for the 36 percent income earned by Alamar from this…

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.