Crane Company owned 22100 shares of Wildhorse Co. purchased in 2017 for $607750. On December 15, 2020, Crane declared a property dividend of all of its Wildhorse Co. shares on the basis of one share of Wildhorse for every 10 shares of Crane common stock held by its stockholders. The property dividend was distributed on January 15, 2021. On the declaration date, the aggregate market price of the Wildhorse shares held by Crane was $915000. The entry to record the declaration of the dividend would include a debit to Retained Earnings of?

Q: On July 1, 2021, Bird Inc., a private enterprise, acquired 1,250 shares of Duck Ltd. for $75,000.…

A: Shares refer to the unit of ownership in an organization. Shares are issued to raise funds against…

Q: On October 1, 2019, Michael Company purchased 30,000 shares of Jackson Company at P180 per share…

A: The investment is valued under the fair value method if the investment is in less than or equal to…

Q: On December 31, 2020, DEF, Inc. holds 100,000 shares of Devin Company with market value of…

A: Gain or loss is the amount of money gained or lost on investment. If the money invested give more…

Q: Pharoah Company owns 3200 of the 10000 outstanding shares of Sheridan Corporation common stock.…

A: % of shares = No. of shares hold / Total outstanding shares of Sheridan Corporation = 3200/10000 =…

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: tinson Corporation owned 40,000 shares of Matile Corporation. These shares were purchased in 2017…

A: Retained earnings refers to the amount of net income that remains after dividends have been paid out…

Q: On January 1, 2021, ABC purchased 90% of the outstanding shares of JKL Company at a cost of…

A: The consolidated income is determined by combining the incomes of both parent and subsidiary’s…

Q: On January 1, 2020, Stellar Co. purchased 23,000 shares (a 10% interest) in Elton John Corp. for…

A: Inter group company accounting deals with accounting of related entities such as subsidiaries, etc.

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

A:

Q: Boxer Company owned 20,000 shares of King Company that were purchased in 2019 for $500,000. On May…

A:

Q: Pharoah Company purchased 200 of the 1000 outstanding shares of Sheridan Company's common stock for…

A: Equity investment: It refers to the money invested in purchasing the equity shares of a company in…

Q: On December 31, 2020, Hazel Company held 1,000 ordinary shares of X Co. in its portfolio of…

A: FVOCI method accounts fair value adjustment through OCI.

Q: What Is the investment carrying value at December 31. 2020? a. P6,162,000 b. P5,970,000 c.…

A: On October 1, 2019, Michael Company purchased 30,000 shares of Jackson Company at P180 per share. At…

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

A: In accordance with IAS 28 "If an entity holds 20% or more of the voting power (directly or through…

Q: On January 1, 2021, ABC purchased 90% of the outstanding shares of JKL Company at a cost of…

A: On January 1, 2021, ABC purchased 90% of the outstanding shares of JKL Company at a cost of…

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: BuyCo, Inc., holds 28 percent of the outstanding shares of Marqueen Company and appropriately…

A: The equity method is the one that is applied when a company has 20% to 50% of stock ownership…

Q: At the beginning of 2022, Rose, Inc. purchased 8000 ordinary shares of Mark, Inc. for $800,000. The…

A: Investment in  shares can be accounted as per fvpl or fvocl

Q: Boxer Company owned 20,000 shares of King Company that were purchased in 2016 for $500,000. On May…

A: Retained Earnings is the accumulated amount of earnings that a business entity has after it has paid…

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: Milk Tea Company bought 1,000 shares of Macha Corporation as equity investments on January 10, 2022…

A: The company makes several investments to earn more income. When a company purchases the shares of…

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: 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: 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 June 30, 2021, Peter, Inc. purchased the following shares at a total cost of P10,700,000…

A: The realized gain on the sale of a share is calculated by subtracting the book value of the shares…

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: 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: On January 1, 2021, Pancake Co. bought 250,000 ordinary shares of House Co. for P3,000,000,…

A: The impairment loss is the loss due to a decline in the value of an asset. It is determined by…

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: On December 31, 2020, Hazel Company held 1,000 ordinary shares of X Co. in its portfolio of…

A: Fair value through OCI methods accounts the fair value adjustment through OCI.

Q: On January 1, 2021, ABC purchased 90% of the outstanding shares of JKL Company at a cost of…

A: Consolidated financial statement includes the components of financial statements to be prepared for…

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: On April 1, 2019, BBB Company purchased 40% of the outstanding ordinary shares of Clarke Company for…

A: Note: It is assume that company preparing their financial account according calendar year.

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: Pod Company purchased 25% of the outstanding ordinary shares of Jobs, Inc. and subsequently used the…

A: Under equity method  for the investment, the investor records the investees dividend and net income…

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

A: Part 1:

Q: the outstanding shares of JKL Company at a cost of P1,632,000. On that date, JKL had P1,020,000…

A: On January 1, 2021, ABC purchased 90% of the outstanding shares of JKL Company at a cost of…

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: 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: Shakey Corporation owned 30,000 Ordinary shares of Macdo Corporation purchased in 2019 for P…

A: A property dividend is a type of dividend that replaces cash or stock dividends by giving…

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 December 31, 2016, Akron, Inc. purchased 5 Percent of Zip Company’s common shares on the open…

A: a.1 a.2

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: 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: 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 ,…

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.