Cole Inc. owns shares of Marlin Corporation stock. At December 31, 2017, the securities were carried in Cole’s accounting records at their cost of $875,000, which equals their fair value. On September 21, 2018, when the fair value of the securities was $1,200,000, Cole declared a property dividend whereby the Marlin securities are to be distributed on October 23, 2018, to stockholders of record on October 8, 2018. Prepare all journal entries necessary on those three dates.

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A: Pacita Corporation…

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A:

Q: Simmons Corporation owns stock of Armstrong, Inc. Prior to 2017, the investment was accounted for…

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A:

Q: On March 31, 2018, Chow Brothers, Inc., bought 10% of KT Manufacturing’s capital stock for $50…

A: Workings: Purchased 10 % of KT manufacturing's capital stock for $ 50 millions.

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Q: s shares of Marlin Corporation stock. At December 31, 2020, the securities were carried in Cole's…

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

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Fringe Benefit Tax

Fringe benefits are in addition to the compensation that companies give to their employees. It is an additional benefit above the stated salary. It helps to keep the employees of the firm motivated as sometimes the only salary is not enough to retain the quality employees of the firm. There are different types of fringe benefits. Fringe benefits are given in both private as well as public enterprises.