26. On January 1, B company paid $2,295,000 to acquire 90,000 shares of O company's voting common stock, which represents a 30 percent investment. No allocations to   goodwill or other specific accounts were made. Significant influence over O company is achieved by this acquisition, and so B company applies the equity method. O company   declared a $1 per share dividend during the year and reported net income of $750,000. What is the balance in the Investment in O company account found in B company's   financial records as of December 31?

Q: On May 20, Montero Company paid $180,000 to acquire 55 shares (9%) of ORD Corporation as a long-term…

A: The companies invest in long-term investments to make additional income on the surplus funds at…

Q: Unit IV question 3

A: A journal entry is a type of accounting entry used to record a business transaction in a company's…

Q: On July 15, 2021, Max Co. acquired 25,000 shares of Chicken Co. for P250,000 which includes P1 cash…

A: The acronym "FVPL" stands for Fair Value Through Profit or Loss, these types of securities are not…

Q: On July 10, 2021, Romantic Co. acquired 25,000 shares of Baboy Co. for P200,000. Romantic Co does…

A: Answer:-   As per PFRS,if investment in equity shares is measures at FVOCI,gains inlosses on…

Q: On January 4, 20Y6, Spandella Company purchased 160,000 shares of Filington Company directly from…

A: Journal: Recording of a business transactions in a chronological order.

Q: Presented below are two independent situations: (a) Sandhill Inc. acquired 10% of the 420,000…

A: Whenever a company invests in another company and as a result, obtains significant influence in the…

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 2, 2009. DR. STRANGE CORP. acquired all the outstanding common stock of ATTY. WEIRD INC.…

A: Note: Since you have asked multiple question, we will solve the first question for you. If you want…

Q: At the beginning of current year, Disgust Company purchased 30,000 shares of an investee's 200,000…

A: Investment income refers to the income earned by a person or business entity on the investments made…

Q: Brooks Corporation owns 40% of the common stock of the Fairmont Corp. as a long-term investment…

A: As per international financial reporting standards  on consolidation  Investment  in associate is to…

Q: What should ABC report as investment income?

A: Investments: An investment is considered an asset. It is an amount invested by the investor in PPE…

Q: On January 15 of the current year, Thomas Company purchased 2,800 shares of Dillon Company at a…

A: The income ( loss ) is the difference between the total sales price and the total cost of the…

Q: In its December 31, year 1 consolidated statement of retained earnings, what amount should ABC…

A:

Q: On January 1, 20X7, Phillips Corporation acquired 35 percent of the outstanding shares of Shell…

A: The equity method of accounting shows the total investment in the associate…

Q: 9.On January 1, 2021, White Company acquired 25,000 shares of Black Company for P900,000.  Black has…

A:

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

A: Solution: Cost of investment = P20,000,000 Share in profit of Abulug company for 2020 =…

Q: How much is the unrealized gain (loss) recognized in Bumilis 2022 profit or loss?

A: Unrealized gain or loss is the amount of gain or loss which the company has taken into account by…

Q: Presented below are two independent situations: (a) (b) Sheridan Inc. acquired 10% of the 417,000…

A: Journal entries are the transactions which are reported in the books of accounts primarily. It is…

Q: Choose the correct. On January 1, Puckett Company paid $1.6 million for 50,000 shares of Harrison’s…

A:

Q: n January 1, Puckett Company paid $1.28 million for 64,000 shares of Harrison’s voting common stock,…

A: As per IAS 28, if any investment is made in associates and joint ventures, the equity method should…

Q: what amount should Noah report as investment in Sabina?

A: IAS 28 specifies an investor is said to have significant influence over the investee if the investor…

Q: As a long-term investment, Painters’ Equipment Company purchased 20% of AMC Supplies Inc.’s 400,000…

A: 1.

Q: In its December 31, year 1 consolidated balance sheet, what amount should ABC report as common…

A: Common Stock under Consolidated Balance Sheet will be the Common Stock of Parent Entity.

Q: Renee Company invested in 60,000 shares of another entity for a total cost of P5,500,000 on January…

A: Right issue Right issue which has made the opportunity to the existing shareholders to purchase…

Q: On January 1, year 1, ABC Company purchased 80% of the stock of XYZ for P4,000,000 cash. Prior to…

A: Stockholders are the Persons of entities whom the company issues its ownership rights in the form of…

Q: %24 me n January 1, 2021, Fisher Corporation paid $2,877,000 for 35 percent of the outstanding…

A: Req-a   Purchase cost of investment $28,77,000 Add: Equity in Earnings ($808000 * 35%) $2,82,800…

Q: Inn Corporation had 30,000 ordinary shares of NP which were acquired during Year 2 for a total…

A: Introduction Equity investments are measured at initial recognition in the beginning and at fair…

Q: On January 1, Puckett Company paid $1.6 million for 50,000 shares of Harrison’s voting common stock,…

A: Given: Puckett Company paid $1.6 million to purchase 50,000 shares of Harrison's common stock and…

Q: On January 1, 20x1, ABC Co. purchased 1,000 shares of XYZ, Inc. for ₱250,000. Commission paid to…

A: Measuring equity shares at fair value through profit or loss - means the shares are restated at the…

Q: The following are two independent situations. Situation 1 Sandhill Cosmetics acquired 10% of the…

A: given that, Sandhill Cosmetics acquired 10% of the 196,000 shares of common stock @$12 per share,…

Q: On January 1, 2021, PARKSOOYOUNG acquired all the outstanding shares of SUNGJAE for P600,000. The…

A: An asset refers to the resources that are generally used for generating the cash flows that help in…

Q: On July 15, 2021, Max Co. acquired 25,000 shares of Chicken Co. for P250,000 which includes P1 cash…

A: The realized gain refers to the gain that is converted into cash by the company by selling off the…

Q: (A) At the beginning of the year, ABC Corp. purchased 40% of the outstanding ordinary shares of an…

A: The investment in associate refers to investment in any company which gives the investor the…

Q: Andrew Company purchased 800 ordinary shares of Valley Industries as a trading investment for…

A: This question deals with the calculation of unrealized gain/loss and dividend revenue to be booked…

Q: Inn Corporation had 30,000 ordinary shares of which were acquired during Year 2 for a total…

A: Answer -   December 31, Year 2 ledger balance (30,000 x P65)                  P1,950,000 Cost…

Q: Inn Corporation had 30,000 ordinary shares of NPA Company which it acquired during Year 2 for a…

A: Answer -    Working Note : December 31, Year 2 ledger balance (30,000 shares x 65)…

Q: On January 1, 2021, PARKSOOYOUNG acquired all the outstanding shares of SUNGJAE for P600,000. The…

A: In the context of the given question, we should compute the goodwill or gain from the acquisition of…

Q: CFAS Company had the following shareholders' equity on January 1, 2022: Preference share capital,…

A: Note: As per our guidelines, only the first three subparts will be answered.   1. Amount charged to…

Q: On January 1, 2021, the Moody Company entered into a transaction for 100% of the outstanding common…

A: Consolidation of companies is the combination of two or more businesses into a single company.

Q: On January 1, 2021, PARKSOOYOUNG acquired all the outstanding shares of SUNGJAE for P600,000. The…

A: Merger refers to the process under which the two separate organizations forms a new organization.…

Q: On July 1, 2013, Tremen Corporation acquired 40% of the shares of Delany Company. Tremen paid…

A: Carrying amount in the investment account will be calculated by adjusting the opening balances with…

Q: 18, Armstrong Company paid $3,500,000 to acquire all of the common stock of Hall Co ce sheet at the…

A: Impairment loss Impairment loss refers to the loss in the value of asset when the recoverable…

Q: On December 4, 20X0, ABC Corporation paid P1,296,000 for 40,000 ordinary shares of XYZ Company. The…

A:

Q: On January 1, 2018, Fisher Corporation paid $2,290,000 for 35 percent of the outstanding voting…

A: Investment: It refers to the process of using the currently held excess cash to earn profitable…

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.