Problem 16-13 (AICPA Adapted)000.0E7Presumptuous Company revealed the following informationpertaining to dividends from nontrading investments inordinary shares during the year ended December 31, 2021:The entity owned a 10% interest in Beal Company, whichdeclared a cash dividend of P500,000 on November 30,2021 to shareholders of record on December 31, 2021 andpayable on January 15, 2022.On October 15, 2021, the entity received a liquidatingdividend of P100,000 from Clay Mining Company. Theentity owned a 5% interest in Clay Mining Company.What amount of dividend income should be reported for thecurrent year?a.500,000b.600,000C.150,000d.50,000493

calculation of dividend income for current year are as follows

Answered: What amount of dividend income should…

Business

Accounting

What amount of dividend income should be reported for the current year? a. 500,000 b. 600,000 с. 150,000 d. 50,000 493

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA2: Investments

Section: Chapter Questions

Problem 24E

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1. On January 1, 2021 Dona Company purchased 10% of another entity's outstanding ordinary shares for P6,000,000. The investment classified as nonmarketable equity security and accounted for under the cost method. The following data pertain to investee's operations for 2021 and 2022: 2021 2022 Net income 3,000,000 4,000,000 Dividend paid none 9,000,000 What amount should Dona Company report as dividend income in its 2022 income statement?
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REQUIRED: What is the net income for the current year?
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Required: How much is the Ordinary Share Capital at year end?* How much is the Preference Share Capital at year end?* How much is the TOTAL subscribed share capital (assuming subscriptions receivable is collectible on January 5, 2022)?*
The Shareholders’ Equity of Purple Corporation showed the following: Ordinary Share capital, P 10 par, 900,000 shares issued P9,000,000; Ordinary Share Premium P2,700,000; Retained Earnings P1,300,000. On January 2, 2019, the corporation purchased and retired 100,000 shares of its share capital for P 1,800,000. In preparing the journal entry for this transaction, is there an indicated gain or indicated loss?Using the data, how much is the indicated gain (loss)? If your answer is an indicated loss, put a parenthesis. Using the data, how much will be credited to Cash? Using the data, how much will be debited to Ordinary Share Premium??
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Following is a list of investments owned by Ivanhoe Ltd., as of the company’s year-end, December 31, 2020: Investment No. Shares Cost Fair Value HFX Corporation 1,000 $8.00 $7.10 FDY Ltd. 3,000 6.90 6.95 CTN Corporation 4,600 5.00 5.80 On January 15, 2021, Ivanhoe sold the shares in CTN Corporation for $6.25 per share. Prepare the journal entries required to record the sale, assuming the company uses the fair value through other comprehensive income without recycling method. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit Jan. 15, 2021 (To adjust to current fair value) (To record the sale of shares) (Reclassification…
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