Agee Corporation acquired a 30% interest in Trent Company on January 1, 2018 for $490,000. At that time, Trent had 1,000,000 shares of its $1 par common stock issued and outstanding. During 2018, Trent paid cash dividends of $170,000 and thereafter declared and issued 5% common stock dividend when the fair value was $2 per share. Trent's net income for 2018 was $356,000. How doI calculate the balance in Agee's equity investment account at the end of 2018?

Q: On January 1, 2021, AB Company purchased 15,000 shares of C Inc. for P25 per share. A total of…

A: Solution: Purchase cost of shares = 15000*P25 + P15,000 = P390,000 Sale value of shares = 5000*P30 =…

Q: On January 2, 2017, Normal Inc. acquired 15% interest in Laco Co. by paying P1,500,000 for 7,500…

A: Investment Income For Recognize of investment income which has to be the fair value at the end of…

Q: During the year 2021, David Company purchased 1,000 shares of Goliath Company ordinary shares at…

A:

Q: On July 1, 2015, Cleopatra Corporation acquired 25% of the shares of Marcus, Inc. for P1,000,000.…

A: SOLUTION- EXPLANATION- NET PROFIT IN 2019 = 300000 INCREASE IN INVESTMENT = 300000 *25%…

Q: On July 1, 2015, Cleopatra Corporation acquired 25% of the shares of Marcus, Inc. for P1,000,000.…

A: The investment in shares gets increased by profits and decreased by dividend received.

Q: Haynes, Inc., obtained 100 percent of Turner Company’s common stock on January 1, 2017, by issuing…

A: As you have posted multiple independent questions, we are answering the first two questions. Kindly…

Q: On 1 October 2018, KING acquired 30,000 of VAM's 100,000 shares in exchange for 75,000 of its own…

A: Associate Company is the corporation in which another company has made substantial proportion of…

Q: Haynes, Inc., obtained 100 percent of Turner Company’s common stock on January 1, 2017, by issuing…

A: 1.

Q: Turner Company owns 40% of the outstanding stock of ICA Company. During the current year, ICA paid a…

A:

Q: According to the statements, prepare the appropriate journal entries, and calculate the differences…

A: Balance sheet shows the financial position of the entity by presenting its assets and liabilities so…

Q: On July 1, 2015, Cleopatra Corporation acquired 25% of the shares of Marcus, Inc. for P1,000,000. At…

A: Given :- Cost of acquisition = P1,000,000. Percentage of share acquired = 25%. Net income for 2018 =…

Q: Smith, Inc., has the following stockholders’ equity accounts as of January 1, 2018:Haried Company…

A: a.

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

A: Part 1:

Q: Marcus Company made the following transactions in the ordinary shares of Cato Company designated as…

A: Assets at fair value through profit or loss (FVTPL) can be defined as the financial assets that are…

Q: On July 1, 2015, Cleopatra Corporation acquired 25% of the shares of Marcus, Inc. for P1,000,000.…

A: Amount of profit in 2018 P1,60,000   Share of Profit (P160000 * 25%) P40,000         Account…

Q: Haynes, Inc., obtained 100 percent of Turner Company’s common stock on January 1, 2017, by issuing…

A: Retained earning is the amount kept by the company for the future growth purpose.

Q: Haynes, Inc., obtained 100 percent of Turner Company’s common stock on January 1, 2017, by issuing…

A:

Q: Kingbird Corporation acquired a 38% interest in Blue Company on January 1, 2021, for $480,000. At…

A: Balance of equity investment = Cost of purchase + Share of net income - Share of dividend

Q: During the year 2021,David Company purchased 1,000 shares of Goliath Company ordinary shares at P150…

A: The shares designated to be valued at fair value through other comprehensive income are to be…

Q: MD Corp. completed the following transactions relating to investment in AO Company ordinary shares,…

A: Where shares are held as investments for short-term (current assets), the shares are recorded at…

Q: Pangan Corp. acquired 4,000 shares of Agustin, Inc. ordinary shares on Oct. 20, 2018 for P660,000.…

A: Answer with explanation are as follows

Q: On July 1, 2015, Cleopatra Corporation acquired 25% of the shares of Marcus, Inc. for P1,000,000. At…

A: When one company is holding shares in another company which is less than  50% , then it is called as…

Q: Pascual Corp. owned 20,000 ordinary shares of Alegrado Corp., purchased in 2018 for P1,800,000. On…

A: The questions are multiple choice questions. Required  Choose the Correct Option.

Q: On July 1, 2015, Cleopatra Corporation acquired 25% of the shares of Marcus, Inc. for P1,000,000. At…

A: When one company is holding shares in another company from 20% to 50% , then it is called as…

Q: On July 1, 2018, Tremen Corporation acquired 40% of the shares of Delany Company. Tremen paid…

A: Investment is the amount which is put into some assets or securities to gain some returns in future.…

Q: Garfun, Inc., owns all of the stock of Simon, Inc. For 2018, Garfun reports income (exclusive of any…

A:

Q: During the year 2021, David Company purchased 1,000 shares of Goliath Company ordinary shares at…

A: The shares designated to be valued at fair value through other comprehensive income are to be…

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: Heidebrecht Design acquired 30% of the outstanding common stock of Oriole Company on January 1,…

A: 1) journal entries for Heidebrecht Design for 2020 assuming Heidebrecht Design cannot exercise…

Q: Sarnia Inc. acquired 15% of the 100,000 outstanding common shares of London Ltd. on January 1, 2018,…

A: Given: Pat Inc.(P) acquired 15% of the 100,000 outstanding common shares of Mark Inc Cash…

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: On January 1, 2021, Ildiko Corporation purchased a 35% interest in the common shares of Rance Ltd.…

A: In case of equity method of accounting for Investment then Investment income will be assessee share…

Q: 1. Determine the dividend income recognized by Hough on the equity instrument in 2020 and 2021. 2.…

A: Dividend Income = Number of Shares * Dividend per Share. Carrying Amount = Number of Shares * Fair…

Q: During the year 2021,David Company purchased 1,000 shares of Goliath Company ordinary shares at P150…

A:

Q: Agee Corporation acquired a 30% interest in Trent Company on January 1, 2018 for $490,000. At that…

A: Shareholder's equity are also called as Stockholder's equity and it is the remaining amount the…

Q: On January 1, 2021, Pepita Corporation purchased 25% of the outstanding voting shares of Pablito…

A: These are the accounting transactions that are having a monetary impact on the financial statement…

Q: On 1 January 2017, Al Yousef Group acquired 30% of the outstanding voting shares of Saleh…

A: Accounting Rules (1) Debit what comes in, Credit what goes out.(2) Debit all expenses and losses,…

Q: On January 1, 2021 ABC purchased 80% of the outstanding shares of DEF at a cost of $960,000. On that…

A: Non-controlling interest is the interest in the subsidiary entity of an entity other than the parent…

Q: On 1 January 2017, Al Yousef Group acquired 30% of the outstanding voting shares of Saleh…

A: Solution: Share in Saleh's dividend in 2017 = Total dividend paid * % holding of AI = OMR 40,000 *…

Q: Bloom Company was incorporated on January 1, 2018, with P500,000 from the issuance if share capital…

A: Balance sheet means where all assets , liabilities and equity are shown in proper format In balance…

Q: On 1 January 2017, Al Yousef Group acquired 30% of the outstanding voting shares of Saleh…

A: Yousef Group acquired 30% of the outstanding voting shares of Saleh Enterprises & investment…

Q: On July 1, 2017, Entity H acquired 25% of the shares of Oki, Inc. for P1,000,000. At the date, the…

A: Entity H acquired 25% share, therefore its share in profit  = 25% x 160000 = 40000

Q: On January 1, 2021, American Corporation purchased 30% of the outstanding voting shares of Short…

A: As per equity method of valuation, The total equity available is Fair value + Income - dividend…

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 July 1, 2015, Cleopatra Corporation acquired 25% of the shares of Marcus, Inc. for P1,000,000.…

A: The investment in shares of another company (assets) gets increased with profits and and decrease…

Q: According to the statements, prepare the appropriate journal entries, and calculate the differences…

A: 1) Date General Journal Debit Credit Jan 1 FV- OCI Investment  $900,000     Cash   $900,000…

Q: Solomon Company owned 20,000 shares of Moses Company purchased in 2015 for P2,400,000. On December…

A: Property Dividends given = 20,000 / 10 = 2000 shares

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, 2018, the Moody Company entered into a transaction for 100% of the outstanding common…

A: Consolidate amount of land at acquisition = land amount of Moody + land amount of Osorio…

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.