Wang be required to make to reflect the increase in ownership.
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Wang owns 30% of Chen and at December 31, 2015 the balance in Wang's investment account equals $400,000. On January 1, 2016 Wang purchases an additional 40% ownership in Chen for $600,000 bringing Wang's ownership up to 70%. Wang will Dr. Investment in Chen for $600,000 and credit cash for $600,000. What additional entry will Wang be required to make to reflect the increase in ownership.
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- Adams owns 80% of Williams and has a carrying value of the investment at January 1, 2020, of $600,000. On that date, Adams sells 20% of its investment for $150,000 reducing its ownership to 60%. What journal entry is recorded by Williams at that dateCompute bond proceeds, amortizing premium by interest method, and interest expense Ware Co. produces and sells motorcycle parts. On the first day of its fiscal year, Ware issued $42,000,000 of four-year, 12% bonds at a market (effective) interest rate of 11%, with interest payable semiannually. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. Open spreadsheet Compute the following: The amount of cash proceeds from the sale of the bonds. Round your answer to the nearest dollar. $ fill in the blank 2 The amount of premium to be amortized for the first semiannual interest payment period, using the interest method. Round your answer to the nearest dollar. $ fill in the blank 3 The amount of premium to be amortized for the second semiannual interest payment period, using the interest method. Round your answer to the nearest dollar. $ fill in the…Mathilda Corp has a 90% interest in Gambit Co. while the latter has an 80% interest in Chan Corp. For the year ended December 31,2019. The net income from own operations of these three companies were: Mathilda- Php1M, Gambit-Php500K, and Chan-Php 250K. What is the amount of minority interest in net income for 2019.
- Gulko owns 60% of Larsen. In 2020 Gulko reports Sales of $4,000,000, which includes 3rd party sales of $3,500,000 and intercompany sales of $500,000. Larsen reports intercompany sales of $200,000 and total sales of $700,000. How much is Consolidated Sales.Francis acquired 80% of Cole’s Co. equity shares for $300,000 on January 1, 2018. On 31 December 2018 Francis sold $100,000.00 worth of goods to Cole’s. These goods had cost Francis $80,000.00. On December 31, 2018, Cole still had 20% of worth of goods remaining in inventory (held at cost to Cole). The two companies draft income statements as at 31 December 2018 are shown below. Francis Cole’s $'000 $'000 Revenue 5,000.00 1,000.00 Cost of sales (2,900.00) (600.00) Gross profit 2,100.00 400.00 Administrative expense (1,000.00) (200.00) Distribution costs (700.00) (120.00) Profit before tax 400.00 80.00 Income tax expense (130.00) (25.00) Profit for the year 270.00 55.00 Required Prepare the consolidated income statement to incorporate Francis and Cole for the year ended 31 December 2018. Note: Show all workingsMiss Wells has purchased the shares of two companies over the years. Each company has only one class of shares. Purchases and sales of shares in the first of these companies, Memo Inc., are as follows: February, 2015 purchase November, 2016 purchase April, 2017 purchase October, 2017 sale September, 2019 purchase November, 2019 sale 60 @ $24 90 @ 28 45 @ 30 (68) @ 36 22 @ 26 (53) @ 40 Purchases and sales of shares in the second company, Demo Ltd., are as follows: April, 2018 purchase December, 2018 purchase July, 2019 sale $24 160 @ (260) @ 36 200 33 Required: A. Determine the cost to Miss Wells of the Memo Inc. shares that are still being held on December 31, 2019. B. Determine the taxable capital gain resulting from the July, 2019 disposition of the Demo Ltd. shares.
- Huge owns 25% of Small and at January 1, 2020 has a balance in its Investment in Small of $400,000. Huge has significant influence. In 2020 Huge sells inventory (cost $60,000) to Small for $80,000. At the end of 2020, 30% of the inventory remains unsold. Small sells all the remaining inventory to third parties in 2021. During 2021, Huge sells inventory (cost $80,000) to Small for $100,000, with 60% of this inventory being sold by Small to third parties in 2021. Small sells all the remaining inventory to third parties in 2022. In 2021 Small reported $90,000 of net income and paid dividends of $20,000. What is the amount of Equity Income recognized in 2021 ?The question is in the attached image.On January 1, 2013, an investor purchases 15,000 common shares of an investee at $9 (cash) per share. The shares represent 20% ownership in the investee. The investee shares are not considered "marketable" because they do not trade on an active exchange. On January 1, 2013, the book value of the investee's assets and liabilities equals $600,000 and $150,000, respectively. On that date, the appraised fair values of the investee's identifiable net assets approximated the recorded book values. During the year ended December 31, 2013, the investee company reported net income equal to $22,500 and dividends equal to $12,000. Noncontrolling investment accounting (price equals book value)Assume the investor can exert significant influence over the investee. Determine the balance in the "Investment in Investee" account at December 31, 2013. $3,600 $137,100 $135,000 $690,750
- William accounts for its investment in Baker Company under the equity method. William carried the Baker investment at $150,550 and $165,350 at December 31, 2020, and December 31, 2021, respectively. During 2021 Baker recognized $75,100 of net income and paid dividends of $20,350. Assuming that William owned the same percentage of Baker throughout 2021, its percentage ownership must have been: (Round your answer to the nearest whole percent):Jeffrey Wingate and Jill Gifford have agreed to form FreshNow, Inc., an organic wholesale food distributor. Mr. Wingate transfers $900,000 in cash and services valued at $100,000 in exchange for 10% of FreshNow, Inc. common stock valued at $1 million. Ms. Gifford will transfer the following assets and liabilities in exchange for 40% of the common stock of FreshNow, Inc., valued at $4 million Basis Fair Market Value Assets Warehouse $5 million $6 million Land 2 million 3 million Equipment 0 million 1 million Total Assets $7 million $10 million Liabilities $6 million Also, Whole Foods, Inc. has agreed to contribute $8 million in cash in exchange for 50% of the common stock valued at $5 million and a note of $3 million issued by FreshNow, Inc. The transaction qualifies as an exchange governed by section 351(a). State the total basis Jeffrey Wingate obtains in all the FreshNow, Inc. stock he receives. State the total…Apenhuizen acquires 20 percent of the outstanding voting shares of Bergweide on January 1, 2019, for € 210,000 and applies the equity method in accounting for this investment. Bergweide has a book value of € 900,000 at January 1, 2019, and records net income of € 210,000 during 2019 and € 230,000 in 2020. Bergweide declared and paid dividends of € 100,000 in each of these years. On the acquisition date the book values of Bergweide’s asset and liability accounts are considered as equal to fair values except for a copyright whose value accounted for Apenhuizen’s excess cost in the acquisition. The copyright had a remaining life of 15 years at January 1, 2019. If Apenhuizen sells its entire investment in Bergweide on January 1, 2021, for € 300,000 cash, what is the impact on Apenhuizen’s income?