On September 1, Wray Company received a P500,000 cashWray Company provided the following data for the currentdividend from Seco Company in which Wray Companyliquidating dividend from King Company. Wray CompanyWray Company owns a 10% interest in Bow Company,On October 1, Wray Company received a P60,000Problem 16-14 (AICPA Adapted)year:On September 1, Wray Company received a P500,000coowns a 30% interest.On October 1, Wray Company received aowns a 5% interest in King.Wray Company owns a 10% interest in Bow Companywhich declared and paid P2,000,000 cash dividend onNovember 15.What amount should be reported as dividend income for thecurrent year?a. 700,000b. 560,000c. 500,000d. 200,000

calculation of income from dividend for current year are as follows

On September 1, Wray Company received a P500,000 cash dividend from Seco Company in which Wray Company Wray Company provided the cent year: On September 1, Wray Company received a P500,000 co dividend from Seco Company in which Wray Compa owns a 30% interest. On October 1, Wray Company received a P60.000 liquidating dividend from King Company. Wray Company owns a 5% interest in King. Wray Company owns a 10% interest in Bow Company which declared and paid P2,000,000 cash dividend on

On September 1, Wray Company received a P500,000 cash dividend from Seco Company in which Wray Company Wray Company provided the cent year: On September 1, Wray Company received a P500,000 co dividend from Seco Company in which Wray Compa owns a 30% interest. On October 1, Wray Company received a P60.000 liquidating dividend from King Company. Wray Company owns a 5% interest in King. Wray Company owns a 10% interest in Bow Company which declared and paid P2,000,000 cash dividend on

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: H plc owns 80% of the the voting shares of S plc. S plc is a subsidiary of H plc. The most recent…

A: Introduction An affiliate may make loans to another affiliate of may transfer the debt of affiliate…

Q: Assume that Pam company purchased a 25% interest of Sin Company for $1,000,000 on 1/1/X1. At the…

A: When a company acquires the stake in another company, the accounting treatment of the money invested…

Q: Rudolph, Inc. owns 15% of the common stock of Red Nose Corporation and used the fair value method to…

A: Net income, also known as net profit or earnings, is a crucial fiscal standard that represents…

Q: 1,900,000 Plant Assets 1,100,000 1,200,000 Current Liabilities (1,000,000) (1,000,00

A: Journal entries are the initial recording of all the monetary business transactions in a systematic…

Q: Segmental Manufacturing owns 35% of Glesson Corporation stock. Glesson pays a total of $47,000 in…

A: Introduction:-. Journal entry used to record business transactions. Dividend income means any…

Q: Bean Corp

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

Q: On January 1, 20X7, Phillips Corporation acquired 35 percent of the outstanding shares of Shell…

A: The equity method of accounting shows the total investment in the associate…

Q: equity i

A: Definition; Equity: It is the share holder's stake identified on the balance sheet of the company.…

Q: Prepare journal entry(ies) needed by Andreas Company to record the investment in Rafif Company from…

A: The investment on which has a significant influence by the company is the required to be journalized…

Q: Price Corporation, Bucek Corporation, and Askews Corporation have the following income and expenses…

A: Step 1: Calculate the Taxable IncomeGather Information: You'll need the operating income and…

Q: Presented below are two independent situations: (a) (b) Sheridan Inc. acquired 10% of the 417,000…

A: Journal entries are the transactions which are reported in the books of accounts primarily. It is…

Q: On January 1 Kwun Corporation purchased a 20% equity in Connors Corporation for $180,000. At…

Q: a. On January 1, Yourkie Company acquired 30% of the outstanding stock of Harris Company for…

A: a. Investment in Harris company. 300000 Cash. 300000

Q: (TCO A) Bend Inc. holds 25% of the outstanding voting shares of Calico Co. and appropriately applies…

A: Intra entity profit refers to the profit received from an intra entity transaction.

Q: Fairbanks Corporation purchased 400 ordinary shares of Sherman Inc. as a tradim E13,200. During the…

A: Ans. Total revenue to be recognised is the total dividend received and the appreciation in the share…

Q: Mozart Co. owns 35% of Melody Inc. Melody pays $50,000 in cash dividends to its shareholders for the…

A: Dividend: It can be defined as the distribution of the residual earnings of the company to its…

Question

On September 1, Wray Company received a P500,000 cash
Wray Company provided the following data for the current
dividend from Seco Company in which Wray Company
liquidating dividend from King Company. Wray Company
Wray Company owns a 10% interest in Bow Company,
On October 1, Wray Company received a P60,000
Problem 16-14 (AICPA Adapted)
year:
On September 1, Wray Company received a P500,000co
owns a 30% interest.
On October 1, Wray Company received a
owns a 5% interest in King.
Wray Company owns a 10% interest in Bow Company
which declared and paid P2,000,000 cash dividend on
November 15.
What amount should be reported as dividend income for the
current year?
a. 700,000
b. 560,000
c. 500,000
d. 200,000

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Marigold Corporation purchased 630 common shares of Ditch Inc. for $12,900 on February 21. Marigold paid a 1% commission on the share purchase and, because the shares were not publicly traded, decided to account for them following the cost model. On June 30, Ditch declared and paid a cash dividend of $1.90 per share. (a) Prepare Marigold Corporation's journal entry to record the purchase of the investment. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List debit entry before credit entry.) Date Account Titles and Explanation Feb. 21 Debit Credit
During the current year, Swallow Corporation, a calendar year C corporation, has the following transactions: Income from operations $660,000 Expenses from operations 760,000 Dividends received from Brown Corporation 240,000 Click here to view the dividend received deduction table. Question Content Area a. Swallow Corporation owns 12% of Brown Corporation's stock. How much is Swallow's taxable income or NOL for the year? Swallow's taxable income after deducting the dividends received deduction is $fill in the blank fd6fd0f8303e049_2 . Feedback Area Feedback The purpose of the dividends received deduction is to mitigate multiple taxation of corporate income. Without the deduction, income paid to a corporation in the form of a dividend would be taxed to the recipient corporation with no corresponding deduction to the distributing corporation. Later, when the recipient corporation paid the income to its shareholders, the income would again be subject to taxation with no corresponding…
Acme Company owns 35% of Superior Company. Superior Company declared and paid $44,000 cash dividends for the year. Acme Company's journal entry to record the dividends includes a: Ocredit to the Investment account for $44.000. credit to Dividend Revenue for $15.400. credit to the Investment account for $15,400. credit to Dividend Revenue for $44,000. None of the above. C
Bean Corporation purchased 35% of the outstanding shares of common stock of Williams Corporation as a long-term investment. Subsequently, Williams Corporation reported net income. What journal entry would Bean Corporation use to record its share of the earnings of Williams Corporation? debit Cash: credit Dividend Revenue debit Investment in Williams Corporation Stock: credit Cash debit Cash: credit Investment in Williams Corporation debit Investment in Williams Corporation; credit Income of Williams Corporation
Mozart Co. owns 35% of Melody Inc. Melody pays $50,000 in cash dividends to its shareholders for the period. Mozart's entry to record the Melody dividend includes a? O Debit to Cash for $50,000 O Credit to Cash for $17,500 Credit to Investment Revenue for $50,000 O Credit to Equity Method Investments for $17,500
On January 1 Criquet Co. acquired an interest in the Tamlee Co. for $500,000. At December 31, Tamlee Co. declared and paid a cash dividend of $50,000 and reported a net income of $160,000. REQUIRED: Prepare the journal entries for the Criquet Co. under each of the independent circumstances: 1. Criquet Co. acquires a 10% interest in the Tamlee Co. 2. Criquet Co. acquires a 25% interest in the Tamlee Co.
On January 2, 20Y4, Whitworth Company acquired 37% of the outstanding stock of Aloof Company for $320,000. For the year ended December 31, 20Y4, Aloof Company earned income of $83,000 and paid dividends of $26,000. On January 31 20Y5, Whitworth Company sold all of its investment in Aloof Company stock for $338,090. Journalize the entries for Whitworth Company for the purchase of the stock, the share of Aloof income, the dividends received from Aloof Company, and the sale of the Aloof Company stock. If an amount box does not require an entry, leave it blank. Jan. 2, 20Y4 - Purchase - Select - - Select - - Select - - Select - Dec. 31, 20Y4 - Income - Select - - Select - - Select - - Select - Dec. 31, 20Y4 - Dividends - Select - - Select - - Select - - Select - Jan. 31, 20Y5 - Sale - Select - - Select - - Select - - Select - - Select - - Select -
Scott Co. acquired a 30% interest in Roker, Inc. for $210,000 and appropriately applied the equity method. During the first year, Roker, Inc. reported net income of $125,000 and paid cash dividends totaling $25,000.What amount will Scott report as it relates to the investment at the end of the first year on its income statement? Select one: A. Investment earnings totaling $37,500 B. Investment earnings totaling $22,500 C. Receipt of dividends totaling $7,500 D. Net investment earnings totaling $75,000
On January 2, 20Y4, Whitworth Company acquired 40% of the outstanding stock of Aloof Company for $340,000. For the year ended December 31, 20Y4, Aloof Company earned income of $180,000 and paid dividends of $10,000. On January 31 20Y5, Whitworth Company sold all of its investment in Aloof Company stock for $405,000. Journalize the entries for Whitworth Company for the purchase of the stock, the share of Aloof income, the dividends received from Aloof Company, and the sale of the Aloof Company stock. If an amount box does not require an entry, leave it blank. Jan. 2, 20Y4 - Purchase Dec. 31, 20Y4 - Income Dec. 31, 20Y4 - Dividends Jan. 31, 20Y5 - Sale