Ryan Company purchased 80% of Chase Company for $270,000 when Chase's book value was $300,000. Chase has 50,000 shares outstanding and currently has a book value of $400,000. Assume Chase issues 30,000 additional shares common stock solely to Ryan for $12 per share. What is the new percent ownership Ryan owns in Chase? Multiple Choice O 90.0% 87.5% 82.5% < Prev 16 of 20 Next >

Ryan Company purchased 80% of Chase Company for $270,000 when Chase's book value was $300,000. Chase has 50,000 shares outstanding and currently has a book value of $400,000. Assume Chase issues 30,000 additional shares common stock solely to Ryan for $12 per share. What is the new percent ownership Ryan owns in Chase? Multiple Choice O 90.0% 87.5% 82.5% < Prev 16 of 20 Next >

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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In 1/1/2024 Smart co. with owner equity (ordinary shares 1,500,0000, premium 2,500,000 and retained earning 1,800,000) purchased 10% of Welly co.with owner equity (ordinary shares 800,0000, premium700,000 and retained earning 1,000,000) by isuing 50,000 of its 25par and 5 market price. In that date the inventory of welly book value was 100,000 and market value 140,000, equipment with book value 250,000 and fair market 320,000(7 years) In 31/12/2024 ART income was 280,000 before recorded any of DORPY and paid dividend 70,000, and income was 80,000 with 40,000 dividend, the market price share for Smart was 125 and 75 for welly in 31/12/2024 required: journalize all required entries for this investment in 01/01/2024 and 31/12/2024 with any elemination entries in 31/12/2024
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zion 9 Assume that on Dec. 31, 2014, Paul's Investment in Saint Account has a balance of $ 438,000. Paul's 80 % interest in Saint has a fair value of $ 468,000. On January 1, 2015, Paul sells all of its Saint shares for $ 450,000. What is the gain/loss on sale? OAS 15000 Loss OBS 12000 Gain OCS 33000 Loss OD.S 33000 Gain Lying to another question will save this response.
On Jan 2, 20X1, ABC acquired 20% of the 400,000 ordinary shares of Yellow Co at P30 per share. The following data are applicable for 20X1 and 20X2: 20X1 20X2 Yellow dividends 40,000 48,000 Yellow profit 140,000 160,000 Yellow share market price at year end 32 31 On Jan 2, 20X3, ABC sold 20,000 shares of Yellow at its quoted price of P31 per share. How much should be recognized in profit or loss on January 2, 20X3? 9,400 27,000 33,000 37,600
Subject: AFAR #185
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PROBLEM V. On January 2, 2020, P Company acquired 80% interest in S Company for P4,125,000 cash. On this date, the outstanding ordinary share capital and accumulated profits of P Company and S Company are as follows: P Company S Company Ordinary share capital P2,250,000 P1,312,000 Share premium 1,500,000 Accumulated profits (losses) 5,250,000 3,187,500 There was no issuance of ordinary shares during the year. Noncontrolling interest is initially measured at fair value. Fair value of the following assets of S Company exceeded their book values as follows: Inventories, P210,000; Property and equipment (remaining useful life 10 years), P127,500. All other assets and liabilities are fairly valued. Goodwill if any is not impaired. On December 31, 2020, the two companies reported the following operating results: P Company S Company Net income P1,785,000 P975,000 Dividends paid 525,000 262,500 1. Compute for the consolidated shareholders' equity.
Situation 1Waterway Cosmetics acquired 10% of the 189,000 shares of common stock of Martinez Fashion at a total cost of $12 per share on March 18, 2020. On June 30, Martinez declared and paid $77,300 cash dividend to all stockholders. On December 31, Martinez reported net income of $122,300 for the year. At December 31, the market price of Martinez Fashion was $13 per share.Situation 2Wildhorse, Inc. obtained significant influence over Seles Corporation by buying 30% of Seles’s 32,100 outstanding shares of common stock at a total cost of $9 per share on January 1, 2020. On June 15, Seles declared and paid cash dividends of $32,700 to all stockholders. On December 31, Seles reported a net income of $78,800 for the year.Prepare all necessary journal entries in 2020 for both situations.
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Jackie Inc. made the following capital transactions on a domestic share not listed in the exchangeJanuary 15 - purchased 25,000 shares at P16 eachJanuary 31 - purchased 10,000 shares at P20 eachMarch 1 - sold 20,000 of January 15 shares at P15 eachApril 25 - sold 8,000 of January 31 shares at P25 each On the return to be filed for the April 25 sale, what amount should be reflected in Item 11?