Two years ago, Print Co. acquired 20% of Stamp Co. common stock for $600,000. Today, Print acquires the remaining 80% shares of Stamp for $3,800,000 cash. Print total investment is considered to be O a. $4,350,000. O b. $4,400,000. O c. $4,450,000. O d. $4,750,000.
Q: he fair value of common stock 15 per share. Calculate the investment in GMC Company.
A:
Q: Madison Corporation purchases an investment in Lake Geneva, Inc. at a purchase price of $20 million…
A: Equity investment at end of year will be the aggregate of purchase cost and any value added in…
Q: On January 2, Matthews Corporation acquired 20% of the outstanding common stock of Dennehy Company…
A: Solution : Cost of investment = $450,000 Net income of Dennehy = $90,000 Cash dividend paid by…
Q: Champaign Corporation purchases 45% of the common stock of Rockville, Inc. at a purchase price of…
A: An equity investment refers to the acquisition of power interests ( equity shares or stocks) in a…
Q: On August 1 2018, Sea Food Co., purchased 80% of the common stock of Dolphin Co.,. The common stock…
A: Purchased 80% of common stock of Dolphin co Common stock issue = 70000 shares Par value = OMR 25 per…
Q: Eagle Exporters purchased 80,000 of the 200,000 outstanding shares of Giant Distributors for…
A: The objective of the question is to calculate the year-end balance in the Investment in Giant…
Q: Frankie Corporation purchased 100% of Blake Company for P600,000. At that date, Blake Company had…
A: Given in the question: Particulars Book Value Market Value Cash and Receivables…
Q: On June 1, 2022, Madison Corporation purchased 100,000 shares of Steller, Inc., common stock for…
A: When a company acquires another company by purchasing the majority of shares, in such case the…
Q: How much is the total cash outflows from investing activities?
A: Total cash outflows from investing activities -15200000 (Option A)
Q: As a long-term investment, Fair Company purchased 20% of Midlin Company’s 120,000 shares for…
A: When investments are made in business less than 20% and also no significant influence was acquired,…
Q: Plum Inc. acquired 90% of the capital stock of Sterling Co. on 1/1/X1 at a cost of $540,000. On this…
A: Total percentage of holding of plum Inc in sterling is 95%
Q: At a total cost of $6,700,000, Herrera Corporation acquired 238,000 shares of Tran Corp. common…
A: The question is based on the concept of Financial Accounting.
Q: Thompson owns 100% of Rollins and at December 31, 2012, its Investment in Rollins account stands at…
A: a. Date Account Titles Debit Credit Dec 31, 2012 Cash $2,500,000 Investment in Rollins…
Q: Wyatt Company acquired 30% interest in the voting stock of Staples Inc. for $650,000. During the…
A: ANSWER:- $ 54,000 is correct answer $54,000 amount will wyatt company report on its income statement…
Q: 2. 18,000 shares (representing 9%) of ZZ Company stock for $306,000 AA Company and ZZ Company…
A: The amount of dividend revenue shown in M.T. Glass, Inc.'s 2029 income statement for these two…
Q: Adelman Company owns 45% of the outstanding voting common stock of Craig Corp. and has the ability…
A: “Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: 3. Bach Co. acquired a 20% interest in C Major Co. on December 31, 20x3 for P630,000. During 20x4, C…
A: The dividend is the distribution of profit among the shareholders of the company. A dividend…
Q: Oriole Company owns 40% interest in the stock of Sandhill Corporation. During the year, Sandhill…
A: Consolidated net income: Net income calculated at the end of a particular period by the parent…
Q: On July 1, 20X1, ABC acquired 25% of the outstanding ordinary shares of Yellow Corp at a total cost…
A: Introduction: When an investor company invests in an investee company for acquiring more than 20% of…
Q: [The following information applies to the questions displayed below.] As a long-term investment,…
A: The appropriate journal entries from the purchase through the end of the year ( assuming no…
Q: On January 1, Vienna Corporation purchased 40% of the outstanding common stock of the Marietta…
A: Investment means the amount of money invested by an entity in a company, its securities such as…
Q: At a total cost of $6,700,000, Herrera Corporation acquired 238,000 shares of Tran Corp. common…
A: In this question, two transactions are mentioned, but required part is missing, i assumed as the…
Q: On May 20, Montero Co. paid $150,000 to acquire 30 shares (4%) of ORD Corp. as a long-term…
A: An acquisition is when a company purchases most of another company's shares.
Q: On Jan. 1, 2023 Apex Company purchases 30,000 shares of the common stock of Cary Industries for…
A: Under equity method of investment, investor company records investment at cost and then the…
Q: M.T. Glass, Inc. purchased the following investments on January 1, 2028: 1. 21,000 shares…
A: Introduction:If an investor company makes an investment between 20 to 50% in the investee company…
Q: 15. On January 1, 20x5, Paz acquired 80% of Shey outstanding ordinary shares for P950,000. Paz uses…
A: Consolidated assets mean assets of holding and subsidiary companies on balance sheet date. It…
Q: dends each year. Roberts reported net income of $50,000 in 2020 and $57,000 in 2021 and paid $12,000…
A:
Q: On Dec. 4, 20x1, Brown Co. acquired 6,000 shares of Venice, Inc. for $50,000. Brown incurred…
A: Answer: On Dec. 31, 20x1, Gain or Loss would be: Purchase Price of 6,000 shares = $50,000 Add:…
Q: On December 31, 20X9, Peak Corporation acquired 80% of Summit Company's common stock for $160,000.…
A: The question is related to Consolidation. The details are given as under Parent Company holding =…
Q: Willard Co. acquired a 30% interest in Diltronics for $420,000 and appropriately applied the equity…
A: Answer:- Income statement meaning:- Income statement is one of the most important financial…
Q: AUSTERE Co. owns 20% of the ordinary shares of SEVERE, Inc. SEVERE additionally has redeemable…
A: Shares refers to a particular value and capital that it issues to raise funds from the stock market…
Q: Wyatt Company acquired 35% interest in the voting stock of Staples Inc. for $550,000. During the…
A: Retained Earnings = Net income - Dividend
Q: in Ramona Company was $410,000. A) Assume Brankov Company owns 10% of the shares of Ramona Company.…
A: Step 1 As per US GAAP, the investment in financial instrument or equity interest, if it is to be…
Q: At a total cost of $1,251,600, Herrera Corporation acquired 84,000 shares of Tran Corp. common stock…
A: Stocks are the shares that represent fractional ownership in the company. Share of net income will…
Q: Pete Inc. purchased 80% of Paul Co. for $270,000 when Paul's book value was $300,000. Paul has…
A: Book value is the sum of the amounts of all the items in the shareholders' equity section on a…
Q: Jackson Moving & Storage Co. paid $120,000 for 25% of the common stock ofMcDonough Co. at the…
A: Given information is: Jackson Moving & Storage Co. paid $120,000 for 25% of the common stock of…
Q: Sunland Company owns 17200 of the 43000 outstanding shares of Carla Vista, Inc. common stock. During…
A: The investment made by companies increases with profit share and decreases with the dividend…
Q: At a total cost of $1,008,000, Herrera Corporation acquired 80,000 shares of Tran Corp. common stock…
A: A company may purchase the common stock of another company. The company can use the equity method to…
Q: Inconsiderate Company acquired 100,000 ordinary shares of Channel Company and 300,000 ordinary…
A: Income from investments refers to the income money received as dividend, interest payments, capital…
AI-generated content may present inaccurate or offensive content that does not represent bartleby’s views.
Unlock instant AI solutions
Tap the button
to generate a solution
Click the button to generate
a solution
- Flicker, Inc. acquired 30% of West Company's voting shares for P 200,000 on January 2, 20x2. Flicker's 30% interest in West gave Flicker the ability to exercise significant influence over West's operating and financial policies. During 20x2, West earned P 80,000 and paid dividends of P 50,000. West reported earnings of P 100,000 for the six months ended June 30, 20x3 and P 200,000 for the year ended December 31, 20x3. What amount should Flicker include in its 20x2 statement of financial performance as a result of the investment? a. 80,000 b. 15,000 c. 24,000 d. 50,000a. On January 1, Yourkie Company acquired 30% of the outstanding stock of Harris Company for $300,000. DATE Debit Credit X/X b. For the year ended December 31, Harris Company earned income of $50,000. DATE Debit Credit X/X c. For the year ended December 31, Harris Company paid dividends of $8,000. DATE Debit Credit X/X d. On January 8th of the next year, Yorkshire Company sold the Harris Company stock for $301,000. DATE Debit Credit X/X i have a-c PLEASE ONLY HELP ON PART D(TCO A) Bend Inc. holds 25% of the outstanding voting shares of Calico Co. and appropriately applies the equity method of accounting. Amortization associated with this investment equals $9,000 per year. For 20X3, Calico reported earnings of $80,000 and paid cash dividends of $30,000. During 20X3, Calico acquired inventory for $57,600, which was then sold to Bend for $90,000. At the end of 20X3, Bend still held some of this inventory at its transfer price of $40,000.Required:(1) Determine the amount of intra-entity profit at the end of 20X3.(2) Determine the amount of Equity in Investee Income that Bend should have reported for 20X3.
- Strickland Industries purchased a 30% interest in Spartan, Inc. for P600,000. Spartan, Inc. has 100,000 P10 par value ordinary shares outstanding. This investment enables Strickland to exert significant influence over Spartan. During the year, Spartan earned net income of P360,000 and paid dividends of P120,000; Strickland earned net income of P48,000 and paid dividends of P160,000. At the end of the year, the shares of Spartan were trading on an organized exchange for P22 per share. On Strickland’s year-end statement of financial position, its investment in Spartan, Inc. will be valued at a.) P600,000 b.) P660,000 c.) P672,000 d.) P696,000Russell Corp.'s transactions for the year ended December 31, 20X1 included the following:· Acquired 50% of Maxwell Corp.'s common stock for $200,000 cash which was borrowed from a bank.· Issued 5,000 shares of its preferred stock for land having a fair value of $320,000.· Issued 500 of its 11% debenture bonds, due 20X6, for $392,000 cash.· Purchased a patent for $220,000 cash.· Paid $120,000 toward a bank loan.· Sold available-for-sale securities for $796,000. Russell’s net cash provided by financing activities for 20X1 was Question 12 options: $472,000. $560,000. $592,000. $680,000.n January 1, 2021, Beilich Enterprises bought 20% of the outstanding common stock of Wolfe Construction Company for $600 million cash. Wolfe’s net income for the year ended December 31, 2021, was $300 million. During 2021, Wolfe declared and paid cash dividends of $60 million. Beilich recorded the investment as follows: ($ in millions) Purchase Investment in Wolfe Construction shares 600 Cash 600 Net income Investment in Wolfe Construction shares (20% x $300 million) 60 Investment revenue 60 Dividends Cash (20% × $60 million) 12 Investment in Wolfe Construction shares. 12 Required:What would be the pretax amounts related to the investment that Beilich would report in its statement of cash flows for the year ended December 31, 2021? (Enter your answers in millions (i.e., 10,000,000 should be entered as 10). Cash outflows should be indicated by a minus sign.)
- Mozart Co. owns 35% of Melody Inc. Melody pays $50,000 in cash dividends to its shareholders for the period. Mozart's entry to record the Melody dividend includes a? O Debit to Cash for $50,000 O Credit to Cash for $17,500 Credit to Investment Revenue for $50,000 O Credit to Equity Method Investments for $17,500On January 1, Big Company acquires all of the common stock of Little Company by issuing 400,000 shares of $1 par value stock with a market value of $12 per share. Little reports earnings of $864,000 and pays dividends of $240,000 in the year of acquisition. The amortization of allocations related to the investment was $48,000. Big’s net income, not including the investment, was $6,360,000, and it paid dividends of $400,000. What is the amount of consolidated net income?Pronghorn Co. invested $1,070,000 in Stellar Co. for 25% of its outstanding stock. Stellar Co. pays out 30% of net income in dividene each year. Use the information in the following T-account for the investment in Stellar to answer the following questions. Investment in Stellar Co. 1,070,000 99,000 (a) How much was Pronghorn Co.'s share of Stellar Co's net income for the year? Net income 29,700 Total net income (b) What was Stellar Co's total net income for the year? 428000 Total Dividends. $ 396000 (c) What was Stellar Co's total dividends for the year? 128400
- Scott Co. acquired a 30% interest in Roker, Inc. for $210,000 and appropriately applied the equity method. During the first year, Roker, Inc. reported net income of $125,000 and paid cash dividends totaling $25,000.What amount will Scott report as it relates to the investment at the end of the first year on its income statement? Select one: A. Investment earnings totaling $37,500 B. Investment earnings totaling $22,500 C. Receipt of dividends totaling $7,500 D. Net investment earnings totaling $75,000On January 2, 20Y4, Whitworth Company acquired 40% of the outstanding stock of Aloof Company for $340,000. For the year ended December 31, 20Y4, Aloof Company earned income of $180,000 and paid dividends of $10,000. On January 31 20Y5, Whitworth Company sold all of its investment in Aloof Company stock for $405,000. Journalize the entries for Whitworth Company for the purchase of the stock, the share of Aloof income, the dividends received from Aloof Company, and the sale of the Aloof Company stock. If an amount box does not require an entry, leave it blank. Jan. 2, 20Y4 - Purchase Dec. 31, 20Y4 - Income Dec. 31, 20Y4 - Dividends Jan. 31, 20Y5 - SaleM.T. Glass, Inc. purchased the following investments onJanuary 1, 2028:1. 21,000 shares (representing 42%) of AA Company stockfor $546,0002. 18,000 shares (representing 9%) of ZZ Company stockfor $306,000AA Company and ZZ Company reported the following informationfor the years 2028 and 2029:2028: AA Company ZZ CompanyNet income $140,000 $225,000Total dividends paid $ 78,000 $ 53,000Market value at Dec 31 $33 per share $22 per share2029: AA Company ZZ CompanyNet income $210,000 $280,000Total dividends paid $ 90,000 $125,000Market value at Dec 31 $35 per share $23 per shareCalculate the total investments shown in M.T. Glass, Inc.'sDecember 31, 2028 balance sheet (i.e., the balance in theInvestment in AA Company plus the balance in the Investmentin ZZ Company).
