1. On July 1, 2021, Rich sold half of its stock in Doane for 396,000 cash. Before income taxes, what amount should Rich include in its 2020 income statement as a result of the investment? *

Q: On August 1, 2020, Swifty Corporation purchased 20% of the outstanding voting shares in WLT…

A:

Q: balance in Tuao’s investment in Abulug Company

A: Balance of investment in other entity = Cost of investment + (Profit of the other entity *…

Q: The entry to record the declaration of the dividend would include a debit to Retained Earnings of

A: Given that: Purchase price of 20,000 shares = P300,000 Market price of shares = P500,000

Q: Matthew, Inc., owns 30 percent of the outstanding stock of Lindman Company and has the ability to…

A: (A)  amount of equity method income would Matthew recognize in 2021 from its ownership interest in…

Q: On January 2, 2020, Tuao Company purchased 10% of Abulug Company's outstanding ordinary shares for…

A: The investment in shares of another company gets increased by net profit and gets decreased by…

Q: On July 1, 2021, Tremen Corporation acquired 40% of the shares of Delany Company. Tremen paid…

A: The share and security acquired by the business entity are classified as assets. The ending balance…

Q: Matthew, Inc. owns 30 percent of the outstanding stock of Lindman Company and has the ability to…

A: Workings: Mathew company owns 30% of voting stock in Lindman company. On January 1, 2018 Investment…

Q: Pitino acquired 90 percent of Brey's outstanding shares on January 1, 2019, in exchange for $486,000…

A: Whenever a company purchase the business of another company it can be either amalgamation,…

Q: On December 31, 2020, R papa Company, an entity with no subsidiary, purchased 10,000 ordinary shares…

A: An investment in other entity can be recorded using two methods; 1) Fair value method, and 2) Equity…

Q: . On January 1, 2020, Santos Ltd. purchased 30% of Yardley Co.'s 50,000 outstanding common shares at…

A: Journal entries are those entries which are recorded in the journal book at the time when-ever a…

Q: On July 1, 2021, Gupta Corporation bought 25% of the outstanding common stock of VB Company for $100…

A: Requirement 1:   Pass a journal entry to record investment in shares.

Q: On January 2, 2020, Tuao Company purchased 10% of Abulug Company’s outstanding ordinary shares for…

A: Formula: Ending capital = Beginning capital + Net income - Dividends paid

Q: On January 1, 2020, Beyonce Co. purchased 25,000 shares (a 10% interest) in Elton John Corp. for…

A:

Q: In January 2020, Domingo, Inc., acquired 20 percent of the outstanding common stock of Martes, Inc.,…

A: The question is based on the concept of financial accounting.

Q: On July 1, 2021, Bird Inc, a private enterprise, acquired 1,250 shares of Duckltd. tot 375, 000.…

A: Introduction: Financial transactions are tracked using journal entries. You enter transaction…

Q: Pitino acquired 90 percent of Brey's outstanding shares on January 1, 2019, in exchange for $342,000…

A: Consolidated worksheet refers to the measure that is used for preparing the consolidated financial…

Q: On January 1, 2021, ABC purchased 80% of the outstanding shares of DEF at a cost of P960,000. On…

A: Non-controlling interest is the minority interest where shareholders hold less than 50% of the…

Q: On January 1, 2021, merma Corp. purchased 80% of the outstanding shares of sand Co. at a cost of…

A: Consolidated net income is associated with parent companies and their subsidiaries. A parent company…

Q: On July 1, 2021, Gupta Corporation bought 25% of the outstanding common stock of VB Company for $135…

A: Acquisition of shares of one company by another needs to be recorded in the books of accounts as…

Q: Agee Corporation acquired a 35% interest in Trent Company on January 1, 2019, for $750,000. At that…

A: Stockholders’ equity: The claims of owners on a company’s resources, after the liabilities are paid…

Q: Matthew, Inc. owns 30 percent of the outstanding stock of Lindman Company and has the ability to…

A: Gross profit rate=Sales price-CostSales price×100

Q: Kim Company bought 30% of the shares of Phelps, Inc., at the start of 2021. Kim paid $10 million for…

A: Equity method is a method of recording The investment is recorded at the acquisition cost under…

Q: Matthew, Inc. owns 30 percent of the outstanding stock of Lindman Company and has the ability to…

A: 1. What amount of equity method income would Matthew recognize in 2018 from its ownership interest…

Q: On January 1, 2020, Culver Co. purchased 24,000 shares (a 10% interest) in Elton John Corp. for…

A: As Culver co. holding 30% of equity in john co. and can exercise significance influence ,equity…

Q: Sunland, Inc. acquired 40% of Cheyenne Corporation's voting stock on January 1, 2021 for $940000.…

A: When Investor hold significant influence over investee company, equity method shall be used. The…

Q: On January 1, 2021, Patter Corp. purchased 80% of the outstanding shares of Saturn Co. at a cost of…

A: Solution Working- 1- Amortization excess = 50000/4 =12500. 2-Inter company dividend =…

Q: In January 2020, Domingo, Inc., acquired 20 percent of the outstanding common stock of Martes, Inc.,…

A: The equity method is a technique in accountancy that a firm uses to recognize earnings out of its…

Q: Pitino acquired 90 percent of Brey's outstanding shares on January 1, 2019, in exchange for $342,000…

A: Intra entity transaction refers to the transfer price which is more than the cost of the inventory.…

Q: On January 2, 2020, Black Company purchased 17% of Rock Company's common stock for $51,000. Rock's…

A: Investment means engaging the funds to generate income for the coming years. Investment can be made…

Q: On February 2, 2020, Groove Company purchased 15% of Pop Company's common stock for $54,000. Pop's…

A:

Q: Harrison Co. owns 20,000 of the 50,000 outstanding ordinary shares of Taylor, Inc. During 2021,…

A: The holding of share are considered as the investment and the  balance of investment can be…

Q: Pitino acquired 90 percent of Brey's outstanding shares on January 1, 2019, in exchange for $351,000…

A: SOLUTION- GROSS PROFIT  ALSO CALLED GROSS INCOME IS CALCULATED BY SUBTRACTING THE COST OF GOOD SOLD…

Q: On January 2, 2020, Kesha Corporation bought 10 percent of Bart Corporation's share capital for…

A: Unrealized Gain : As per PFRS (Philippine Financial Reporting Standard) 9, An investment will be…

Q: At the beginning of 2021, Nobela Corporation bought 15% ownership stake in Joseph Corporation for…

A: In the investment of associate, we valued the investment value at the end of each year by the equity…

Q: On January 2, 2020, Samantha Company bought 10% of Camille Company's outstanding ordinary shares for…

A: The amount that Samantha Co. should report as investment in Camille Co. is as Follows.

Q: On July 1, 2021, Gupta Corporation bought 25% of the outstanding common stock of VB Company for $110…

A: The acquisition is a term that When a company purchases some other organization's shares. These…

Q: On August 1, 2020, Whispering Corporation purchased 20% of the outstanding voting shares in WLT…

A:

Q: On January 1, 2019, Long Corporation acquired 30% of the outstanding common shares of Feeley…

A: Part 1:

Q: On July 1, 2021, Gupta Corporation bought 30% of the outstanding common stock of VB Company for $170…

A: The investment by equity method refers to the accounting method in which assets are recognized at a…

Q: Matthew Inc. owns 30 percent of the outstanding stock of Lindman Company and has the ability to…

A: Equity Method of Valuation of Investment: Under the equity method, the income earned on the…

Q: Kim Company acquired 30% of Kourtney Company's voting stock for $200,000 on January 2, 2019. During…

A: When an entity has acquired significant shares of another entity but doesn’t have absolute control…

Q: In January 2020, Domingo, Inc., acquired 20 percent of the outstanding common stock of Martes, Inc.,…

A: The equity method indicates determining the value of the investment by considering the income and…

Q: Haynes, Inc., obtained 100 percent of Turner Company’s common stock on January 1, 2020, by issuing…

A: A business combination is a transaction in which a buyer takes over control of another company (the…

Q: An investor company purchased 60,000 of the 500,000 outstanding shares of the investee company's…

A: Given the following information: An investor company purchased 60,000 of the 500,000 outstanding…

Q: On January 1, 2020, Santos Ltd. purchased 30% of Yardley Co.’s 50,000 outstanding common shares at a…

A: Purchased 30% 50,000 outstanding common shares of Yardley Co.’s at $20 per share Yardley paid cash…

Q: r market values. Assume income was earned evenly throughout the year except for the intercompany…

A: The balance sheet is a statement prepared to ascertain the true position of assets and liabilities…

Q: Matthew, Inc., owns 30 percent of the outstanding stock of Lindman Company and has the ability to…

A: The acquisition takes place when one company acquires ownership title on another company in order to…

Q: hoco, Inc. acquires 15% of Cake Corporation on January 1, 2020, for $130,000 when the book value of…

A: Step 1 The purchase of 15% shares did not qualify as an investment in associate; therefore, the…

Q: On July 1, 2019, Joltik Company purchased 80% of the outstanding shares of Galvantula Company at a…

A: SOLUTION NET INCOME REFERS TO THE AMOUNT AN INDIVIDUAL OR BUSINESS MAKES AFTER DEDUCTING COSTS ,…