What amount should be recorded as the closing amount on this investment
Q: 13 the cost of a property is estimated to be 3500000 and the sales price quoted to be 4500000. An…
A: Installment method is a method of revenue recognition in which gross profit is deferred until cash…
Q: For purposes of the election to defer Federal estate tax payments relative to an interest in a…
A: There is condition to elect extension of federal tax payment relative to an interest in a closely…
Q: Requirement Complete the chart for each of the following independent distributions. Assume that all…
A: Solution: 1) Partner's Fund Loss/Gain Property Shared Property's Basis to Partner…
Q: A non-profit university assessed its students P2,000,000 in tuitions and fees for the semester.…
A: It is assumed that the non-profit university follows the method of…
Q: What is the present value of $44,100 to be received in 10 years; i = 7%. Present value %24
A: Present value is the worth of future sum of money on present date.
Q: At the end of 2020, Payne Industries had a deferred tax asset account with a balance of $65 million…
A: Introduction: Journal entries should not be used to record routine transactions such as customer…
Q: On April 2 a corporation purchased for cash 6,000 shares of its own $12 par common stock at $27 a…
A: Treasury stocks are repurchased shares of the company. The firm can reissue these stocks at a…
Q: River and Co. has entered into a non-cancellable purchase contract which the company to purchase…
A: The company may enter into a non-non-cancellable purchase contract for the inventory to be…
Q: 9. The group company markets two shares for two different companies at a price of $50 per share, one…
A: In a situation where the number of shares which can be bought is uncertain due to any reason like…
Q: Waterway Corporation’s December 31, 2020 balance sheet showed the following: 8% preferred stock,…
A: Paid in capital represents the shares issued and paid by the shareholders' equity of the company. It…
Q: The general ledger of Grumpy Corporation as of December 31, 2021, includes the following accounts:…
A:
Q: After journalizing, the journal entries are transferred to a four-column record where the balances…
A: Ledger or General Ledger: Every account in an organization's chart of accounts gets its own ledger…
Q: an internal control over cash receipts and disbursements, should be prepared on a monthly basis and…
A: cash and cash equivalent cash, Bank balance, marketable security commercial paper and other…
Q: In 1989 Tom died and provided in his will that certain assets with a Fair Market Value of $6,100,000…
A: On the death of a person, all the properties he has are subject to estate tax and inheritance tax.…
Q: A Corporation owns 20% of C Corporation. C has current earnings and profits of $40,000. C…
A: Tax consequences means tax determination of the members who are managing shall engaged or…
Q: cludes the following balances: Common Stock, $41000; Paid-in Capital in Excess of Par, $64200;…
A: Capital stock is the amount of common and preferred shares that a company is authorized to issue.…
Q: cost($) 250,000 250,000 250,000 I profit ($) 20,000 15,000 8,000 ife(years) 30 30 30 al value($) 0…
A: The answer has been mentioned below.
Q: Use the following Unadjusted Trial Balance for Monroe Entertainment Company for questions 44 - 49:…
A: In simple terms, Assets are resources of an entity which arises from past event.
Q: Company XYZ ha
A: The total cost of production of a good comprises of the total fixed cost of production and the total…
Q: Information for the Hi-Test company’s production process for September follows. Assume that all…
A: 1. Determination of variable cost per equivalent unit of materials for the month and 2.…
Q: True or False: Borrowing money and repaying debt results in changes in Net Worth. Celect one: - True…
A: Net worth means the amount that belong to the owner of the businessmen. It include the amount…
Q: Expound the following two physical control for cash received by cashiers in a grocery 1) The cash…
A: Since cash is the most liquid of all assets, a business cannot survive and prosper if it does not…
Q: Information for the Hi-Test company’s production process for September follows. Assume that all…
A: 1. Particulars Units % Materials EUP - Materials Units completed and transferred out 23,000…
Q: Tala Nicole Dimaapi Valdez made a 2-month advance rent payment to Sunwoo Han on October 1, 2022. On…
A: Advance rent is the amount of rent received before the due date.
Q: If they divide the profits 2:4:6, how much should B receive?
A: 1. As no rate of interest on capital is mentioned in the question. So, no interest on…
Q: On January 1, 2017, the Ilocos Norte Corporation purchased the business of its competitor in a…
A: Impairment of Assets: Impairment of assets can be explained as value of the asset that is being…
Q: How much is the amount of cash to be reported in the financial statements?
A:
Q: BBS Corporation is a Resident Foreign Corporation, compute the Taxable Income and the Income Tax…
A: Income tax due is the amount which is due to the taxpayer which have to be paid to the government…
Q: Assets = Liabilities + Owner’s Equity is called the _______________________. Group of answer choices…
A: Accounting Equation: According to the accounting equation, the total assets of a corporation are…
Q: True or False: Borrowing and repaying debt principal does not impact net worth. Select one: True…
A: Net worth is the sum of all your assets, including financial and non-financial, less any…
Q: In the long-term liabilities of its balance sheet at December 31, 2020, ABC Company reported a lease…
A: Lease liability is the amount of lease obligation on the person who has leased an asset from the…
Q: Notification to the COA for any loss of government funds from unforeseen events shall be made within…
A: The COA stands for Council of Audit. It is a very important council for accounts, finance, and…
Q: A company's bank statement shows $715 direct debits and $353 investment income not recorded in the…
A: The bank reconciliation statement is prepared to equate the balances of cash book and passbook with…
Q: The company's asset turnover is 0.9 payout ratio is 0.60 and price earnings ratio is 10, the…
A: Formulas: Asset turnover = Sales / Average total assets Payout ratio = Dividend per share / Earnings…
Q: A) publicly held
A: An entity that is separate from its owners is known as a corporation. A corporation can be public or…
Q: b. A reply from a receivable confirmation letter received from the customer through the client is…
A: Confirmation letters are part of audit procedure and are sent to outside parties to confirm certain…
Q: Kim, Nicolas, and Troy are general partners in KNT Partnership sharing profits and losses in the…
A: Meaning of Liquidation: ( Business comes to an end) Liquidation is the process of close the business…
Q: Waterway Inc. declared a $76000 cash dividend. It currently has 2500 shares of 6%, $100 par value…
A: In case of cumulative preferred stock arrears of dividend is payable in the year in which dividend…
Q: If Ahmad sells Satay Johor at 40 cents per stick, how many sticks are needed to be sold per day in…
A: Company or any business owners wants to know about how many units must be sold during the period or…
Q: C) majority and mino:
A: Stockholders are the people associated with the company but have a separate entity so they are…
Q: nd
A: Control Environment. The phrases "control environment" and "internal control environment" are…
Q: Botiating to acquire Het assets öf Magenta Company. Purple is willing to pay goodwill computed by…
A: Under the super profit method of calculation of goodwill, first of all, super profit is calculated.…
Q: Brave Corporation acquired equipment on January 3, 2018 at a cost of P100,000. The estimated useful…
A:
Q: a the distribution?
A: Given as, Received amount= $3,000, Inventory Partnership basis= $1,800, Land partnership basis=…
Q: Gene and Dixie, husband and wife (ages 35 and 32), bc gross income of $95,000 in 2017, and they are…
A: IRA contribution limitations and eligibility are determined by your modified adjusted gross income,…
Q: A and B were partners sharing profits and losses in the ratio of 3:2. They admit C for 1/5th share…
A:
Q: Amounts entered on the left side of an account in the journal are called what? Group of answer…
A: A journal record the business transaction with debit credit.
Q: Yellow Company acquired a trademark for P10,000,000 from Orange Company on January 5, 2021. The…
A: The intangible assets are used in the business to generate revenues and these assets have a life of…
Q: explain what happen in this list for pepsi company for year 2019, 2020, 2021 List Of Ratio 2019…
A: The question is related to Turnover Ratio or Activity Ratio. 1. Accounts Receivables Turonver…
Q: The following data were taken from the records of C5 Drinks Company for the years ending Year 1 and…
A: The net income can be calculated using various methods as variable costing and absorption costing…
Maenetja Limited acquired 1000 shares in Manana Limited on 1 December 2014 at the fair value of R15 per share. Transaction costs amounted to R200. At the date of acquisition the company elected to recognize subsequent changes in the fair value of this investment in other comprehensive income (OCI). The company’s policy is to release any gains or losses resulting from these fair value adjustments to
On 31 December 2014 the market value of Manana Limited’s shares was R18. On 30 June 2015, 200 shares were sold for R19.50. The market value of the shares at 31 December 2015 was R14.
What amount should be recorded as the closing amount on this investment
Step by step
Solved in 2 steps
- On October 1, 2017, the Puppy Eyes Company acquired the net assets of The Cat Love Company when the fair value of Cat Love’s net assets was P116 million and their carrying amount was P120 million. The consideration transferred comprised P200 million in cash transferred at acquisition date, plus another P60 million in cash to be transferred 11 months after the acquisition date if a specified profit target being met by Cat Love. At the acquisition date there was only a low probability of the profit target being met, so the fair value of the additional consideration liability was P10 million. In the event the profit target was met and the P60 million cash was transferred, what amount should Puppy Eyes present for Goodwill in its statement of Financial position on December 31, 2017, according to IFRS 3 Business Combinations? Group of answer choices 84 million 144 million 94 million 140 millionDDaniel Ltd purchased 75 per cent of the issued capital and in the process gained control over Riccardo Ltd on 1 July 2020. The fair value of the net assets of Riccardo Ltd at purchase was represented by: Share Capital $3,760,000 Retained Earnings 1,320,000 Daniel Ltd paid cash consideration of $4 000 000 for Riccardo Ltd. During the period ended 30 June 2021, Riccardo Ltd paid management fees of $540 000 to Daniel Ltd and Riccardo Ltd had an operating profit of $980 000. Riccardo Ltd's opening retained earnings at the beginning of the period were $1 460 000. At the end of the period Riccardo Ltd declared a dividend of $90 000. There were no other inter-company transactions. Goodwill was determined to have been impaired by $19 000 during the period. Companies in the group accrue dividends when they are declared by subsidiaries.For the period ended 30 June 2021, what consolidation journal entries are required and what is the non-controlling interest?Q2 Maenetja Limited acquired 1000 shares in Manana Limited on 1 December 2014 at the fair value of R15 per share. Transaction costs amounted to R200. At the date of acquisition the company elected to recognize subsequent changes in the fair value of this investment in other comprehensive income (OCI). The company’s policy is to release any gains or losses resulting from these fair value adjustments to retained earnings when the shares are sold. On 31 December 2014 the market value of Manana Limited’s shares was R18. On 30 June 2015, 200 shares were sold for R19.50. The market value of the shares at 31 December 2015 was R14. What are the correct journal entries that should be recorded initially when the shares purchased on 1 December 2014? Select one: a. DR Investment R15 000DR Transaction costs R200 CR Bank/Liability R15 200 b. DR Investment R15 000…
- On June 30, 2016, Gab Company purchased 25% of the outstanding ordinary shares of IB Co. at a total cost of P2,100,000. The book value of IB Co.’s net assets on acquisition date was P7,200,000. For the following reasons, Gab was willing to pay more than book value for the IB Co. shares: IB Co. has depreciable assets with a current fair value of P180,000 more than their book value. These assets have a remaining useful life of 10 years. IB Co. owns a tract of land with a current fair value of P900,000 more than its carrying amount. All other identifiable tangible and intangible assets of IB Co. have current fair values that are equal to their carrying amounts. IB Co. reported net income of P1,620,000, earned evenly during the current year ended December 31, 2016. Also in the current year, it declared and paid cash dividends of P315,000 to its ordinary shareholders. Market value of IB Co.’s ordinary shares at December 31, 2016 is P9 million. Cabbage Company’s financial year-end is…On June 30, 2016, Gab Company purchased 25% of the outstanding ordinary shares of IB Co. at a total cost of P2,100,000. The book value of IB Co.’s net assets on acquisition date was P7,200,000. For the following reasons, Gab was willing to pay more than book value for the IB Co. shares: IB Co. has depreciable assets with a current fair value of P180,000 more than their book value. These assets have a remaining useful life of 10 years. IB Co. owns a tract of land with a current fair value of P900,000 more than its carrying amount. All other identifiable tangible and intangible assets of IB Co. have current fair values that are equal to their carrying amounts. IB Co. reported net income of P1,620,000, earned evenly during the current year ended December 31, 2016. Also in the current year, it declared and paid cash dividends of P315,000 to its ordinary shareholders. Market value of IB Co.’s ordinary shares at December 31, 2016 is P9 million. Cabbage Company’s financial year-end is…Tinto Ltd obtained control of Suda ltd by acquiring 80% of the issued share capital of Suda ltd at 1 January 2015. The consideration is to be settled as follows: · A cash payment of R1 000 000 · The fair value of machine is R500 000 is recorded in Tinto ltd · Tinto ltd will issue new shares to the seller, to the value of R600 000 Journalize the above transaction in the books of Tinto ltd.
- Honesty Company, an SME, acquired 30% interest of the equity of Integrity Company for P500,000 plus a transaction cost of P10,000 on January 1, 2022. At the end of the year, Integrity reported a profit of P400,000 and declared dividends of P150,000. The dividends were paid on January 15, 2023.Published price quotation does not exist for Integrity. Using appropriate valuation techniques, Honesty determined the fair value of its investment in Integrity at December 31, 2022 as P560,000. Costs to sell are estimated at 3% of the fair value of the investment. Answer the following subquestion relating to this one problem: a. Using the Cost Model, how much is Carrying Value of the Investment at December 31, 2022? b. Using the Equity Model, how much is the amount to be reported by Honesty in the profit or loss for 2022? _________________&Power acquired the shares of Super on 1 January 2016 when the retained profit and general reserve balances of Super were RM250,000 and RM50,000 respectively. On this date, the fair values of the non-current assets in Super were as follows: land RM500,000; buildings RM420,000 and plant & machinery RM560,000. The fair values have not been reflected in the books of Super. The original cost of the buildings was RM375,000 and buildings are depreciated over an estimated useful life of twenty-five years. On the date of acquisition, the plant and machinery had a remaining useful life of eight years. Depreciable non-current assets are depreciated using the straight-line method and depreciation charge for the year 2020 has been provided in the financial statements. The summarized statements of financial position of Power and Super as at 31 December 2020 were as follows: Power Super RM RM 400,000 180,000 Land, at cost Buildings, at net book value Plant and machinery, at net book value Investment…The following intragroup transactions took place during the period ended 30 June 2022: Heart Ltd paid $25 000 during the period ended 30 June 2022 as management fees for services provided by Clear Ltd. During the period ended 30 June 2022, Heart Ltd declared a final dividend of $12 000 out of post-acquisition profits. Heart Ltd rented a spare warehouse to Clear Ltd starting from 31 December 2021 for 1 year. The total charge for the rental was $40 000, and Clear Ltd will pay this amount to Heart Ltd at 31 December 2022. Required In relation to the above intragroup transactions: 1. Prepare adjusting journal entries for the consolidation worksheet at 30 June 2022. 2. Explain in detail why you made each adjusting journal entry, whether there is a tax effect and if the NCI share of equity required adjustment.
- Honesty Company, an SME, acquired 30% interest of the equity of Integrity Company for P500,000 plus a transaction cost of P10,000 on January 1, 2022. At the end of the year, Integrity reported a profit of P400,000 and declared dividends of P150,000. The dividends were paid on January 15, 2023.Published price quotation does not exist for Integrity. Using appropriate valuation techniques, Honesty determined the fair value of its investment in Integrity at December 31, 2022 as P560,000. Costs to sell are estimated at 3% of the fair value of the investment. Answer the following questions related to this 1 problem: a. Using the Equity Model, how much is Carrying Value of the Investment at December 31, 2022? b. Using the Cost Model, how much is the amount to be reported by Honesty in the profit or loss for 2022? c. Using the Fair Value Model, how much is Carrying Value of the Investment at December 31, 2022? __________________a) Liala Ltd acquired all the issued shares of Jordan Ltd on 1 January 2015. The following transactions occurred between the two entities: • On 1 June 2016, Liala Ltd sold inventory to Jordan Ltd for $12,000, this inventory previously costed Liala Ltd $10,000. By 30 June 2016, Jordan Ltd had sold 20% of this inventory to other entities for $3,000. The other 80% was all sold to external entities by 30 June 2017 for $13,000. During the 2016–17 period, Jordan Ltd sold inventory to Liala Ltd for $6,000, this being at cost plus 20% mark-up. Of this inventory, 20 % remained on hand in Liala Ltd at 30 June 2017. The tax rate is 30%. Required: (i) Prepare the consolidation worksheet entries for Liala Ltd at 30 June 2017 in relation to the intragroup transfers of inventory. I (ii) Compute the amount of cost of goods sold to be reported in the consolidated income statement for 2017 relating to the relevant intra-group sales. b) On 1 July 2016, Liala Itd sold an item of plant to Jordan Ltd Ltd…Laila Ltd acquired all the issued shares of Jordan Ltd on 1 January 2015. The following transactionsoccurred between the two entities: On 1 June 2016, Liala Ltd sold inventory to Jordan Ltd for $12,000, this inventory previouslycost Liala Ltd $10,000. By 30 June 2016, Jordan Ltd had sold 20% of this inventory to otherentities for $3,000. The other 80% was all sold to external entities by 30 June 2017 for $13,000. During the 2016–17 period, Jordan Ltd sold inventory to Liala Ltd for $6,000, this being at costplus 20% mark-up. Of this inventory, 20 % remained on hand in Liala Ltd on 30 June 2017. The tax rate is 30%.Required:(i) Prepare the consolidation worksheet entries for Liala Ltd at 30 June 2017 in relation to theintragroup transfers of inventory.(ii) Compute the amount of cost of goods sold to be reported in the consolidated incomestatement for 2017 relating to the relevant intra-group sales.
