Purchased 500 shares of Voltexar stock, paying $49 per share. The investment represents 4% ownership in Voltexar's voting stock. Raider does not have significant influence over Voltexar. Raider intends to hold the investment for the Jan. 14 indefinite future. Aug. 22 Received a cash dividend of $0.32 per share on the Voltexar stock. Dec. 31 Adjusted the Voltexar investment to its current market value of $54.

Purchased 500 shares of Voltexar stock, paying $49 per share. The investment represents 4% ownership in Voltexar's voting stock. Raider does not have significant influence over Voltexar. Raider intends to hold the investment for the Jan. 14 indefinite future. Aug. 22 Received a cash dividend of $0.32 per share on the Voltexar stock. Dec. 31 Adjusted the Voltexar investment to its current market value of $54.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Ramiro Company purchased 40% of the outstanding stock of Marco Company on January 1. Marco reported net income of $88,600 and declared dividends of $20,600 during the year. How much would Ramiro adjust its investment in Marco Company under the equity method? of $ Previous Next 3:23 PM a 53 F Sunny 12/14/2021 2.
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Brave Industries owned investment securities with a book value of $20 million on August 12. At that time, Brave's board of directors declared a property dividend consisting of these securities. The fair value of the securities was as follows: Declaration --- August 12 Date of record --- September 1 Distribution date --- September 20 By how much is total stockholder' equity reduced by the property dividend? $31 million $30 million $27 million $20 million $28 million 30 million 31 million
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Concord Co. purchased 1,150 shares of Sugarland Company for $18 each this year and classified the investment as a trading security. Concord sold 270 shares of the stock for $21 each. At year end the price per share of the Sugarland Company had increased to $22.Prepare the journal entries for these transactions and any year-end adjustments. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit enter an account title to record the purchase enter a debit amount enter a credit amount enter an account title to record the purchase enter a debit amount enter a credit amount (To record the purchase.) enter an account title to record the sale enter a debit amount enter a credit amount enter an account title to record the sale enter a debit amount enter a credit…
ABC Corp has excess cash to invest and wants to buy shares of XYZ Inc to profit from the changes in their value. The company follows IFRS and will account for its investment in XYZ Inc using the FV-NI method and has a December 31 year end. The share price of XYZ Inc was $58.47 on March 1, $49.67 on September 15, and $54.05 on December 31. ABC Corp purchased 58,405 shares of XYZ Inc on March 1 and sold 37,201 of them on September 15. It still owned the remaining shares on December 31. The company paid a per-share commission fee of 1.67% of the share price on the day of buying or selling the shares. Assuming the company record all investment income, gains, fees, and losses in one account, how much net investment income or loss was recorded during the year on its investment in the shares of XYZ Inc? O a. -$4306,263 O b. -$314,323 -$322,383 O d. -$330,442 O . -$298,204
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During the fourthquarter of 2018, Rainbarrel, Inc. generated excess cash, which the company invested in equitysecurities as follows:Nov 16 Purchased 1,200 common shares as an investment in equity securities,paying $6 per share. Rainbarrel owns less than 10% of the outstandingstock in the companies in which it invests.Dec 16 Received cash dividend of $0.35 per share on the equity securities.Dec 31 Adjusted the equity securities to fair value of $4 per share.2018Requirements1. Open T-accounts for Cash (including its beginning balance of $23,000), Investment inEquity Securities, Dividend Revenue, and Unrealized Gain (Loss) on Equity Securities.2. Journalize the foregoing transactions and post to the T-accounts.3. Show how to report the short-term investment on Rainbarrel’s balance sheet atDecember 31, 2018.4. Show how to report whatever should appear on Rainbarrel’s income statement for the yearended December 31, 2018.5. Rainbarrel sold the equity securities for $6,000 on January 14,…
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Ramiro Company purchased 40% of the outstanding stock of Marco Company on January 1. Marco reported net income of $76,000 and declared dividends of $17,800 during the year. How much would Ramiro adjust its investment in Marco Company under the equity method? of $fill in the blank 2