Sunland 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.

Sunland 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.

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: On January 1, 2025, Pina Company paid $765000 for 102000 Blossom Company's outstanding common stock,…

A: To determine the value at which Pina Company should report its investment in Blossom Company on its…

Q: Significant Influence Investment - Prepare all calculations. On January 1, 2020, Joy Inc. paid…

A: Equity method is an accounting technique of recording the financial transactions related to…

Q: ABC Company ended the year with a net profit before taxes of $710000 in 2022. The company is subject…

A: The net income indicates the income earned by the business entity during the specific financial…

Q: Vaughn Corporation had net sales of $2,413,000 and interest revenue of $34,000 during 2020. Expenses…

A: Definition of EPS: EPS stands for Earnings per share it is to be calculated Net income divided by…

Q: An investor company purchased 42,000 of the 100,000 outstanding shares of the investee company's…

A: Equity method is a method of accounting for investments. This method is used when investor has…

Q: On September 3, 2021, Liberty Bank purchased 14,000 shares of eBay stock for $77 per share and…

A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: Toy Co Corporation purchased 282,000 of the 940,000 common shares of Abacus Ltd. on October 1, 2021,…

A: The Significant influence refers to the opportunity to participate in the formulation of an entity's…

Q: On January 1, 2018, La Carm Co. acquired 30,000 shares of Bora Inc.'s 75,000 shares outstanding for…

A: The process by which a business purchases another business, either to expand its current operations…

Q: Instrument Corporation has the following investment which was held throughout 2021–2022. Assume the…

A: Investment in Equity A company's investment in the company stock of another business is referred to…

Q: 25) ABC Corporation purchased 30,000 shares of common stock of the XYZ, Inc. for $50 per share on…

A: Percentage of holding = 30,000 / 100,000 * 100 Percentage of holding = 30%

Q: Pharoah Company purchased 200 of the 1000 outstanding shares of Sheridan Company's common stock for…

A: Equity investment: It refers to the money invested in purchasing the equity shares of a company in…

Q: On January 2, 2019, SurfCity Co. purchased 15,000 shares of Topsail, Inc. for $20 per share. The…

A: Unrealized gain or loss represents the change in the market value of the investment. For equity…

Q: wnership in Papa Company is 10%. Nana ompany. Papa reported net income of $55, e Papa stock on that…

A: Securities which are held to trading purpose are reported at fair value. Any gain or losses which is…

Q: 3. STRANGE Inc. has the following transactions relating to investments during 2021: January 8…

A: The journal entry is recording of transactions in the book of original entry by debiting and…

Q: Manji

A: The objective of the question is to prepare an amortization schedule for the Space Explore bond for…

Q: During 2024, R2D2 Company purchased 10,000 shares of Goliath, Inc. for $30 per share and classified…

A: Unrealized profit and loss means The value of an investment that has not yet been sold or realized…

Q: Requirements: a) Journalize the 2021 transactions. b) Prepare the adjusting entries at December 31,…

A: Particulars Debit/Credit Amount($) Jan 2: FVTPL financial assets-equity, Anna Corporation Dr 60000…

Q: Sheridan Corporation purchased 43020 shares of common stock of the Splish Corporation for $50 per…

A: The possibility for financial gains is one of the main justifications for investing in another…

Q: In 2020, Avalanche Corporation has $70,000 of net income from operations during the current year. In…

A: In order to minimize multiple layers of taxation, a corporation may receive a tax deduction for a…

Q: During 2020, Sheridan Company purchased 85000 shares of Pina Corporation common stock for $1310000…

A: Realized gain: It refers to the gain that arises as a result of selling an asset at a price that…

Q: arado, Inc. owns 30% of the outstanding shares of Tako Inc. common stock. During 2021, ako earns…

A: Lets understand the basics.When one entity have more than 20% of holding in another entity then both…

Q: The following transactions pertain to PARANGAWAMONA Corporation: • Purchased 15,000 shares of the…

Q: Carla Vista Company purchased 200 of the 1000 outstanding shares of Metlock Company's common stock…

A: Equity Investment Equity Investment is the money that is invested in a company through buying of…

Q: U

A: The objective of the question is to prepare an amortization schedule for the Space Explore bond for…

Q: On January 1, 2021, Mojito Corporation purchased 25% (20,000 shares) of the outstanding stock of…

A: When a parent company holds 20-50% in another company then it is known as an associate company.

Q: please step by step solution.

A: On January 1, 2020, Coronado Corporation purchased 34% of the common stock outstanding of Sandhill…

Question

Sunland 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.

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

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

In 2020, Merced, Inc. (a C-corporation) had net operating income of $20,000. During 2021, Merced also had long-term capital gains of $50,000 and long-term capital losses of $65,000. In addition, Merced, Inc. received a $70,000 dividend from Dolphin, Inc. in 2020. Merced owns 25% of the shares of Dolphin. Note: the operating income only includes revenue and expenses directly related to operations (it does not include any capital transactions or dividends). Determine Merced’s tax liability of 2020.
On January 23, 2019, Happy Construction repurchases 275,000 shares of its outstanding common stock for $12 per share. On May 19, 2019, Happy Construction sells 60,000 shares of its treasury stock for $27 per share. On November 1, 2019 Happy Construction sells100,500 shares of treasury stock for $8 per share. 1. Prepare the necessary journal entries for the above transactions.
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
On May 1, 2020, Clarke Inc. acquired 1,250 shares of Mayson Ltd. for $75,000. This investment represents a 16% interest in Mayson Ltd. and Clark Inc. has significant influence. On December 31, 2020, Mayon Ltd. paid a $35,000 dividend to its shareholders. At April 30, 2021 Mayson Ltd.'s shares were valued at $30 per share and Mayson Ltd. reported net income of $27,000 for the year. On June 15, 2021, Clarke Inc. sold the shares for $37,000. Both Clarke Inc. and Mayson Ltd. have April 30, 2021 year-ends. Prepare dated journal entries for the investment on the acquiring company's books and from acquisition to disposal. Ignore income taxes. Journal entry descriptions are optional.
An 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.)
Garnett Company was organized on January 1, 2020 with authorized capital of 100,000shares of P200 par value. On January 10, the company issued 25,000 shares atP220 per share. On March 25, the company issued 1,000 shares for legal services when the fair value was P240 per share. On September 30, 5,000 shares were issued for a tract of land when the fair value was P260 per share. What amount should be reported for share premium?
On January 1, 2021, Ildiko Corporation purchased a 35% interest in the common shares of Rance Ltd. for $60,000. Rance Ltd. reported profit and paid dividends as follows: 2020-profit $40,000; dividends paid $50,000 2021 - profit $88,000; dividends paid $70,000. Assume that Ildiko Corporation uses the equity method to account for its investment in Rance Ltd. The balance in the "Investment Income" account on Ildiko's Income Statement for the year ended December 31, 2021 is $62,800 O $61,750 O $5,250 $43,750
In 2020, Merced, Inc. (a C-corporation) had net operating income of $20,000. During 2021, Merced also had long-term capital gains of $50,000 and long-term capital losses of $65,000. In addition, Merced, Inc. received a $70,000 dividend from Dolphin, Inc. in 2020. Merced owns 25% of the shares of Dolphin. Note: the operating income only includes revenue and expenses directly related to operations (it does not include any capital transactions or dividends). What is Merced’s taxable income for 2020?
James Co. owns 8,000 of the 20,000 outstanding shares of Lamp Corp. common stock and exercises significant influence over the company. During 2019, Lamp earns $200,000 and pays cash dividends of $80,000. For the year ended December 31, 2019, James Co. should report income related to the investment equal to: ○ $0 O $72,000 $80,000 O $32,000
During 2021 Carla Vista Company purchased 10700 shares of Kingbird Inc. for $37 per share. During the year Carla Vista Company sold 2850 shares of Kingbird, Inc. for $42 per share. At December 31, 2021 the market price of Kingbird, Inc.’s stock was $35 per share. What is the total amount of gain/(loss) that Carla Vista Company will report in its income statement for the year ended December 31, 2021 related to its investment in Kingbird, Inc. stock? $-7150 $-1450 $-21400 $14250
In 2021, ACME Corporation (a C corporation) had operating income of $250,000. ACME sold investments that resulted in a $120,000 short-term capital gain and a $200,000 long-term capital loss. ACME received a dividend of $100,000 from Andiron, Inc. ACME owns 5% of Andiron stock. In 2020, ACME had taxable income of $100,000 (which included $20,000 of LTCG). In 2017, 2018, and 2019, ACME did not have any capital transactions. Determine ACME's taxable income for 2021. Determine Acme's tax liability for 2021. Assume that ACME is a client. Explain what the client can expect in terms of the overall tax liability in 2021.
On January 1, 2021, MNO Corp. paid $200,000 for its investment in 10,000 shares of XYZ Inc. of the 200,000 total shares of stock issued by the company. The following information pertains to XYZ during 2021: Net income $400,000 Dividends declared and paid $60,000 The market price of common stock on 12/31/2021 $22 What amount would MNO Corp report in its year-end 2021 balance sheet for its investment in XYZ? $223,000. $260,000. $200,000. $180,000