Sunland Company acquired a 50% interest in Oriole Corporation on December 31, 2020 for $1835000. During 2021, Oriole had net income of $1060000 and paid cash dividends of $280000. At December 31, 2021, the balance in the investment account should be $2365000. $2225000. $1835000. $2505000.
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Sunland Company acquired a 50% interest in Oriole Corporation on December 31, 2020 for $1835000. During 2021, Oriole had net income of $1060000 and paid cash dividends of $280000. At December 31, 2021, the balance in the investment account should be
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- Use the info below to answer the following questions: On January 2, 2021, Pirate, Inc. purchased a 30% interest in Tee Corp. for $3, 000, 000 cash. During 2021, Tee's net income was S3, 500, 000 and it paid dividends of S1, 000, 000. Pirate's 2021 income from Tee was: Pirate's Equity Investment balance in Tee at December 31, 2021 will be:On December 31, 2020, Ryan Corp, acquired a 40% Interest in Gosling Corp. for $ 315,000. During 2021, Gosling reported net income of $200,000 and paid total cash dividends of $ 50,000. Assuming Ryan uses the equity method, at December 31. 2021, the balance in the investment account should be OA) $375,000. OB) $ 395,000. OC) $255,000. OD) $295,000.) Ziek Corp. acquired a 30% interest in ZKI Corporation on December 31, 2020 for $2,159,000. During 2021, ZKI had net income of $864,000 and paid cash dividends of $605,000. At December 31, 2021, what should be the balance in the Investment in ZKI account? (A 36) O $77,700 O $2,159,000 O $2,236,700 O $2,599,700
- Z Corporation has the following transactions relating to its investment during 2020: Jan 5 Acquired 16,000 shares of Y company for P1,500,000 paying an additional P10,000 for brokerage and P5,000 for commission. Feb 14 Received dividends from Y company declared January 10,2020 to the stockholders of records January 31,2020, P16,000. Required:prepare all the necessary entries assuming the investment is 1. Financial asset at Fair Value through profit and loss 2. Financial asset at Fair Value through other comprehensive incomeSuppose that AXE company acquires exactly 25% of the voting common stock of Company SARDAR Inc. for $3,000,000 at the beginning of the year 2020. Pfizer company reports $1,200,000 earnings for the year in its net income and pays $550,000 in cash dividends at the end of the year 2020. 1. Using the cost method, what is the investment income and the balance sheet investment account balance respectively for AXE company? * A) $137,500, $3,000,000 B) $300,000; $3,162,500 C) $137,500; $2,300,000 D) None of the above. 2. Using the equity method, what is the investment income and the balance sheet investment account balance respectively for AXE company? * A) $137,500, $3,000,000 B) $300,000; $3,162,500 C) $137,500; $2,300,000 D) None of the above.Juniper Inc. acquired a 25% interest in Saturn Co. on January 1, 2021, for $260,000. During 2021, Saturn reported net income of $86,000, and paid a total cash dividend to shareholders in the amount of $16,000. Juniper uses the equity method to account for this investment. At the end of 2021, Juniper will report the following debit balance in the investment account: Question 6 options: $285,500 $260,000 $277,500 $281,500
- Philip Company purchased 250,000 ordinary shares of Smiley Company for P40 per share on April 2, 2020. Smiley Company had 1,000,000 ordinary shares outstanding during 2020, paid cash dividends of P600,000 during 2020, and reported net income of P2,000,000 for 2020. What amount should Philip Company as report revenue from investment for 2020?In 2021, Cromwell Corporation purchased bonds of Oliver Company at par for $300,000 and classified the investment as available-for-sale. In 2022, the market value declined to $200,000. In 2023, the market value of the investment roset o $230,000, and the investment was sold. How much should Cromwell record as a realized gain or loss in its determmation of net income for 2023? a. $0 b. $30,000 gain c. $70,000 loss d. $100,000 lossOn January 1, 2023 AAA Company acquired BBB Company 10%, P600,000 bonds for P621,300. The bonds which pays interest on every June 30 and December 31. The bond will mature on January 1, 2028 and were purchased to yield 9%. The business model of the AAA Company in managing investment is to hold the asset in order to collect the contractual cash flows. 1. how much is the interest income in 2023 2.how much is the carrying amount of the bonds at december 31,2023 3.how much is the unamortized portion of premium on december 31, 2024 4. how much cash to be debited on december 31,2024
- On January 1, 2019, X Company purchased a 30% interest in Y Company for $250,000. Y reported net income of $100,000 for 2019 and declared and paid a dividend of $10,000. X using the Cost method. In its December 31, 2019, balance sheet what amount should X report as its investment in Y? Select one: a. 277,000 b. 340,000 c. 250,000 d. 223,000Fill in the blanks: On January 1, 2020 Iskrambol Company purchased 20% of lce Buko Company's ordinary shares for P3,000,000.00. During 2020, Ice Buko reported a net income of P3,500,000.00 and paid a cash dividends of P2,000,000.00 on its ordinary shares. Compute a Investment Income for 2020 The balance of "Investment in associale" as of 12.31.2020 ( Previous 23 fSunland Company owns 29000 of the 50000 outstanding shares of Taylor, Inc. common stock. During 2021, Taylor earns $1320000 and pays cash dividends of $1050000.Sunland should report investment revenue for 2021 of $765600. $609000. $0. $156600.