Polska, Incorporated, is obligated to pay its creditors $20,400 during the year. What is the market value of the shareholders' equity if assets have a market value of $22,700?
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Polska, Incorporated, is obligated to pay its creditors $20,400 during the year. What is the market value of the shareholders' equity if assets have a market value of $22,700?
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- I need to know how to solve the question.In 2021, Archibald Corporation incurred the following expenses in connection with the product of its business: P100,000 worth of plane tickets and hotel bills of its employees who were sent to business seminars; P200,000 transportation allowances of its officers from home to office and vice versa as part of their employment contract; P80,000 transportation expenses of messengers from office to several clients; P20,000 special assessment. Determine the allowable expenses that could be deducted by Archibald Corporation from its gross income.On January 1, 2024, Nana Company paid $100,000 for 6,300 shares of Papa Company common stock. The ownership in Papa Company is 10%. Nana Company does not have significant influence over Papa Company. Papa reported net Income of $51,000 for the year ended December 31, 2024. The fair value of the Papa stock on that date was $50 per share. What amount will be reported in the balance sheet of Nana Company for the Investment in Papa at December 31, 2024? Multiple Choice O O $270,000 $315,000 $255,000 $240,000
- For each of the following situations, indicate the amount shown as a liability on the balance sheet of Cooper, Inc., at December 31: c. During November and December of the current year, Cooper sold products to a firm and guaranteed them against product failure for 90 days. Estimated costs of honoring this provision next year are $2,200. Answer d. On December 15, Cooper declared a $60,000 cash dividend payable on January 15 of the following year to shareholders of record on December 31. Answer e. Cooper provides a profit-sharing bonus for its executives equal to five percent of the reported before‑tax income for the current year. The estimated before‑tax income for the current year is $800,000.On January 1, 2020, Concord Corporation had cash and common shares of $80,000. At that date, the company had no other asset, liability, or shareholders’ equity balances. On January 2, 2020, Concord Corporation paid $60,000 cash for equity securities that it designated as fair value through other comprehensive income (FV-OCI) investments. During the year, Concord Corporationreceived non-taxable cash dividends of $26,000 and had an unrealized holding gain of $21,000 (net of tax) on these securities. Determine the following amounts for 2020: (a) Net Income / (Loss) $enter a dollar amount (b) Other Comprehensive Income $enter a dollar amount (c) Comprehensive Income $enter a dollar amount (d) Accumulated Other Comprehensive Income (as at the end of 2020) $enter a dollar amountAn investor company purchased 121,000 of the 250,000 outstanding shares of the investee company's common stock for $79,000 on January 1, 2021. During 2021, the investee company declared and paid dividends of $55,000 and reported earnings for the year of $355,000. If the investor company uses the equity method of accounting for its investment in the investee company, its Equity Investment in the investee company account at December 31, 2021 should be $____________. (Do not round your answer for any part of the computation.)
- Matthew, Inc., owns 30 percent of the outstanding stock of Lindman Company and has the ability to significantly influence the investee's operations and decision making. On January 1, 2021, the balance in the Investment in Lindman account is $365,000. Amortization of excess fair value associated with the 30% ownership is $12,600 per year. In 2021, Lindman earns an income of $132,000 and declares cash dividends of $33,000. Previously, in 2020, Lindman had sold inventory costing $33,600 to Matthew for $56,000. Matthew consumed all but 20 percent of this merchandise during 2020 and used the rest during 2021. Lindman sold additional inventory costing $44,800 to Matthew for $80,000 in 2021. Matthew did not consume 40 percent of these 2021 purchases from Lindman until 2022. a. What amount of equity method income would Matthew recognize in 2021 from its ownership interest in Lindman? b. What is the equity method balance in the Investment in Lindman account at the end of 2021? a. b. Equity…Winkin, Blinkin, and Nod are equal shareholders in SleepEZ, an S corporation. In the conditions listed below, how much income should each report from SleepEZ for 2021 under both the daily allocation and the specific identification allocation methods? Refer to the following table for the timing of SleepEZ’s income. Period Income January 1 through March 15 (74 days) $ 125,000 March 16 through December 31 (291 days) 345,500 January 1 through December 31, 2021 (365 days) $ 470,500 a. There are no sales of SleepEZ stock during the year.On January 1, 2021, Nana Company paid $100,000 for 7,000 shares of Papa Company common stock. The ownership in Papa Company is 10%. Nana Company does not have significant influence over Papa Company. Papa reported net income of $58,000 for the year ended December 31, 2021. The fair value of the Papa stock on that date was $57 per share. What amount will be reported in the balance sheet of Nana Company for the investment in Papa at December 31, 2021? $324,000. $354,000. $399,000. $339,000.
- Winkin, Blinkin, and Nod are equal shareholders in SleepEZ, an S corporation. In the conditions listed below, how much income should each report from SleepEZ for 2021 under both the daily allocation and the specific identification allocation methods? Refer to the following table for the timing of SleepEZ's income. Period Income January 1 through March 1 (60 days) March 2 through December 31 (305 days) $ 125,000 350,000 $ 475,000 January 1 through December 31, 2021 (365 days) (Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.) a. There are no sales of SleepEZ stock during the year. Income Reported Daily Allocation Specific Identification Method Method Winkin Blinkin NodRadnor Corporation reports the following results for the current year: Gross profits on sales $135,000 Long-term capital loss $ 15,000 Short-term capital loss $4,000 Dividends from 60% owned domestic corporation $20,000 Operating expenses $ 55,000 Charitable contributions $15,000 What are Radnor's taxable income and income tax liability? What carrybacks and carryovers are available? If any?ZYX Inc has average gross receipts of $40 million per year over the last several years. In the current year, ZYX has $2,000,000 of taxable income before considering interest.ZYX has $150,000 of business interest income, S1, 200,000 of interest expense, and no floor plan financing. How much interest expense can ZYX deduct?
