Bramble Inc. acquired 20% of the outstanding common stock of Theresa Kulikowski Inc. on December 31, 2020. The purchase price was $1,294,800 for 49,800 shares. Kulikowski Inc. declared and paid an $0.75 per share cash dividend on June 30 and on December 31, 2021. Kulikowski reported net income of $764,000 for 2021. The fair value of Kulikowski’s stock was $29 per share at December 31, 2021.

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A: Unrealized gain means the upsurge in the worth of an asset or security which is yet to sold for…

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

A:

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

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Q: Bramble Inc. acquired 20% of the outstanding common stock of Theresa Kulikowski Inc. on December 31,…

A: Adjusting journal entry: At year-end when the company finalizes its accounts then any unrecognized…

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

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

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Q: During the year 2021, Pal Company purchased 1,000 shares of Pak Company ordinary shares at P150 per…

A: Answer:-  Ordinary share meaning:- Ordinary shares, sometimes also called as common shares, are…

Q: During the year 2021, Pal Company purchased 1,000 shares of Pak Company ordinary shares at P150 per…

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

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

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A:

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

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Q: Bramble Inc. acquired 20% of the outstanding common stock of Theresa Kulikowski Inc. on December 31,…

A: Solution:  journal entries for Bramble Inc. for 2020 and 2021 are as under:

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

A:

Q: BuyCo, Inc., holds 23 percent of the outstanding shares of Marqueen Company and appropriately…

A: Part 1:

Q: 1. On July 1, 2021, Rich sold half of its stock in Doane for 396,000 cash. Before income taxes, what…

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A: Part 1:

Q: ILA Company agreed to pay $850,000 cash and issue 50,000 shares of its $10 par (20 current fair…

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Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.