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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- On 1 January 2017, Al Yousef Group acquired 30% of the outstanding voting shares of Saleh Enterprises for OMR 2,000,000 in cash, a price that was equal to 30% of Saleh's net assets. The investment gave Al Yousef significant influence over Saleh. During the year ending December 31, 2017, Saleh had Net Income of OMR 200,000 and paid dividends of OMR 40,000. For the year ending December 31, 2018, Saleh had a net income of OMR 250,000, and paid dividends of OMR 50,000. For the year ending December 31, 2019, Saleh's business started to have some operational issues that they had a Net Loss of OMR 25,000, however they still managed to pay dividends of OMR 10,000. For the year ending December 31, 2020, because of COVID-19, Saleh had a Net Loss of OMR 50,000 and no dividends have been paid for 2020. Please answer the following questions pertaining to Al Yousef Company: Questions No. 32, 33 and 34 What will be the journal entry to record their share in Saleh's net loss on December 31, 2019? a.…On May 2, 2015, Barney formed ABC Corporation contributing $200,000 in exchange for 100 percent of its stock. The corporation uses the funds to purchase a parcel of land. By April 14, 2020, the land had appreciated in value to $1,550,000. What are the tax consequences to ABC and Barney if the corporation sells the land and then liquidates? On May 2, 2014, Barney formed ABC Corporation contributing $200,000 in exchange for 100 percent of its stock. The corporation uses the funds to purchase a parcel of land. By April 14, 2020, the land had appreciated in value to $1,550,000. On December 12, 2017, he contributed Property #1 valued at $700,000 to ABC, receiving back additional ABC stock. Barney and ABC agreed to reduce the basis of Barney's stock in lieu of reducing ABC's basis in Property #1. Barney had purchased Property #1 in 2014 for $1,750,000. What are the tax consequences to ABC and Barney if, on April 14, 2020, the sells the land for $1,550,000 and Property #1 for $325,000 and…Dr. Hu owns 1,017 shares of EVKars Ltd. They have an ACB of $28 a share. On August 20,2020 she sells all of these shares at $18 per share. On August 25, 2020, she acquires 604 shares of EVKars Ltd at a cost of $10.05 per share and is still holding the shares at the end of the year. What allowable capital loss, if any, will Dr. Hu have from the EVKars Ltd transactions in 2020?
- On January 1, 2010, Harris pays $300,000 for 6,000 shares of Horton, representing a 25% ownership. Harris has a significant influence. During 2010, Horton earns $200,000 and pays dividends of $2 per share. Harris has net income of $500,000 and pays dividends of $300,000 in 2010. a) How much equity income is recorded by Harris in 2010? b) What is the balance in the Investment in Horton found on Harris' books at December 31, 2010?John bought 1,000 shares of intel stock on October 18,2015, for $30 per share, plus a $750 commission he paid to his broker. On December 12, 2019, he sold the shares for $42.50 per share. He also incurred a $1,000 fee for this transaction. 1. What is John's adjusted basis in the 1,000 shares of intel stock? 2. What amount does John realize when he sells the 1,000 shares ? 3. What is the gain or loss for John on sale of his intel stock? 4. What is the character of the gain or loss?Miss 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.
- ohn purchased a 150-day $500,000 bank bill (at a simple interest rate) on 15 July 2021. The purchase price was $490,550. He sold this bank bill on 13 August 2021. (b) Assume that John sold this bank bill at a simple interest rate of 3.17% p.a. up to the maturity date of the above bank bill. What is the annualised (simple interest) yield for this investment from 15 July 2021 to 13 August 2021? Round your answer to 3 decimal places in terms of percentage. a. 9.924% b. 10.905% c. 11.182% d. 10.647%Big owns 70% of Little and uses the equity method to account for its investment in Little. In 2020, Big reports Dividends of $800,000. Little reports Dividends of $300,000. For what amount is worksheet entry "D" (Dr. Investment. Cr. Dividends Paid) prepared for ? $90,000 $210,000 $240,000 $300,000Company R owns a 30% interest in Company E, which it acquires at book value. Company E reports net income of $50,000 for 2015 (ignore taxes). There is an intercompany sale of equipment at a gain of $20,000 on January 1, 2015. The equipment has a 5-year life. What is Company R’s investment income for 2015, and what adjusting entry (if any) does Company R need to make as a result of the equipment sale, if: a. Company E made the sale? b. Company R made the sale?
- 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 $690,750William 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):John bought 2,100 shares of Intel stock on October 18, 2017, for $52 per share plus a $750 commission he paid to his broker. On December 12, 2021, he sells the shares for $75.50 per share. He also incurs a $1,000 fee for this transaction. a. What is John’s adjusted basis in the 2,100 shares of Intel stock? b. What amount does John realize when he sells the 2,100 shares? c. What is the gain/loss for John on the sale of his Intel stock? Gain?