The investments of Harlon Enterprises included the following cost and fair value amounts (5 in millions). Fair Value, Dec. 31 2021 2022 N/A $ 14 $ 37 14 50 $101 Equity Investments A Corporation shares B Corporation shares C Corporation shares. D Industries shares Totals Cost $ 20 35 15 45 $115 Harlon accounts for its equity investment portfolio at fair value through net income. Harlon sold its holdings of A Corporation shares on June 1, 2022, for $15 million. On September 12, it purchased the C Corporation shares. 1 Increase 2 Amount 35 N/A 46 $95 Required: 1. What is the effect of the sale of the A Corporation shares and the purchase of the C Corporation shares on Harlon's 2022 pretax earnings? 2. At what amount should Harlon's securities equity investment portfolio be reported in its 2022 balance sheet? (For all requirements, enter your answers in millions, (i... 10,000,000 should be entered as 10).) 6 million 5 milion

The investments of Harlon Enterprises included the following cost and fair value amounts (5 in millions). Fair Value, Dec. 31 2021 2022 N/A $ 14 $ 37 14 50 $101 Equity Investments A Corporation shares B Corporation shares C Corporation shares. D Industries shares Totals Cost $ 20 35 15 45 $115 Harlon accounts for its equity investment portfolio at fair value through net income. Harlon sold its holdings of A Corporation shares on June 1, 2022, for $15 million. On September 12, it purchased the C Corporation shares. 1 Increase 2 Amount 35 N/A 46 $95 Required: 1. What is the effect of the sale of the A Corporation shares and the purchase of the C Corporation shares on Harlon's 2022 pretax earnings? 2. At what amount should Harlon's securities equity investment portfolio be reported in its 2022 balance sheet? (For all requirements, enter your answers in millions, (i... 10,000,000 should be entered as 10).) 6 million 5 milion

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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A 135.
Zebest Company acquired a 25% interest in Tyco Company on December 31, 2024 for $1,500,000 and elected the fair value option. During 2025, Tyco reported net income of $400,000 and paid total cash dividends of $100,000. The fair value of the investment at December 31, 2024 was $1,625,000 What value would Zebest report on its 2024 balance sheet Equity Investments-Tyco account?
Howdy Doody Corporation purchased a 25% interest in Ranger Corporation for $1,520,000 on January 1, 2022. Howdy Doody can significantly influence Ranger. On December 10, 2022, Ranger declared and paid $1.1 million in dividends. Ranger reported a net loss of $4.0 million for the year. What amount of loss should Howdy Doody report in its income statement for 2022 relative to its investment in Ranger? Multiple Choice $1,382,500. $1,000,000. $1,100,000. $1,520,000.
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57) A Co. acquired 60% of the outstanding ordinary shares of B Co. on January 2, 2021. A acquired it at book value which is the same as its fair value at the date of acquisition. Income statements of A and B for 2022 were as follows: A Net sales Cost of sales 525,000 P350,000 B P875,000 210,000 Gross profit 350.000 105,000 Operating expenses 140.000 52.500 87,500 Operating income Dividend income 245,000 56.000 Net income P301.000 P87.500 There was an upstream of sales of P112,000 in 2021 and P168,000 in 2022. The buying affiliate reported inventory on December 31, 2021 amounting to P70,000 of which 20% comes from the selling affiliate and inventory on December 31, 2022 amounting to PS4,000 of which 30% comes from the selling affiliate. A uses 30% markup on cost and B uses 25% markup on cost for their selling prices. A and B declared and paid dividends in 2022 amounting to P84,000 and P70,000 respectively. On January 1, 2022, B…
The investments of Harlon Enterprises included the following cost and fair value amounts: ($ in millions) Fair Value, Dec. 31 Securities Available-for-Sale 2016 Cost 2017 A Corporation shares B Corporation bonds C Corporation shares $ 20 $14 na $ 37 35 35 15 14 na D Industries shares 50 46 45 Totals $115 $95 $101 Harlon Enterprises sold its holdings of A Corporation shares on June 1, 2017, for $15 million. On September 12, 2017, it purchased the C Corporation shares. Required: 1. What is the effect of the sale of the A Corporation shares and the purchase of the C Corporation shares on Harlon's 2017 pretax earnings? 2. At what amount should Harlon's securities available-for-sale portfolio be reported in its 2017 balance sheet? What adjusting entry is needed to accomplish this? What is the effect of the adjustment on Harlon's 2017 pre- tax earnings?
APPLES Corporation bought 2,000 shares of Oranges Corporation on January 2, 2023 at ₽150 per share and paid₽ 2,250 as brokerage fee and ₽ 1,500 non-refundable tax. The investment is measured at fair value through othercomprehensive income. Prior to the date of acquisition, information revealed that on December 8, 2022, Oranges Corporation declared a ₽10 cash dividend to shareholders on record as of January 31, 2023 payable on April 30, 2023. There were no other transactions in 2023 affecting the investment in Oranges Corporation. What is the historical or acquisition cost of the investment account?A. ₽ 283,750B. ₽ 300,000C. ₽ 302,250D. ₽ 0303.750
Live Large Inc. had the following transactions involving non-strategic investments during 2020. 2020 Apr. 1 Paid $119,000 to buy a 90-day term deposit, $119,000 principal amount, 7.0%, dated April 1. 12 Purchased 4,900 common shares of Blue Balloon Ltd. at $22.50. June 9 Purchased 3,700 common shares of Purple Car Corp. at $51.50. 20 Purchased 1,650 common shares of Yellow Tech Ltd. at $16.00. July 1 Purchased for $86,894 a 9.0%, $84,000 Space Explore Inc. bond that matures in eight years when the market interest rate was 8.4%. Interest is paid semiannually beginning December 31, 2020. Live Large Inc. plans to hold this investment until maturity. 3 Received a cheque for the principal and accrued interest on the term deposit that matured on June 30. 15 Received a $0.95 per share cash dividend on the Blue Balloon Ltd. common shares. 28 Sold 2,450 of the Blue Balloon Ltd. common shares at $26.25. Sept. 1 Received a $3.00 per share cash…
The following information is available about Ayayai Corp.'s investments at December 31, 2023. This is the first year Ayayai has purchased securities for investment purposes. Securities 2,500 shares of Petra Corporation common shares 900 shares of Dugald Inc. preferred shares Ayayai follows IFRS. (a) Cost Account Titles and Explanation $25,000 18,000 $43,000 Fair Value $30,000 16,000 $46,000 Prepare the adjusting entry for December 31, 2023, assuming the investments are acquired for trading purposes and accounted for using the FV-NI model with no separate reporting of dividends and other types of FV-NI investment income and losses. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List debit entry before credit entry.) Debit Credit
ABC Corporation has an investment of 4,000,000 shares in XYZ Corporation. On December 31, 2021, ABC distributes, to its shareholders, the shares of XYZ in the form of a dividend. This distribution is an example of a dividend: a. in stock (stock dividend). b. owned (property dividend). c. in liquidation (liquidating dividend).