e. None of the above 2 40% P10. On January 1, 2012, Madoff Investments purchased 200,000 of Ponzi & Sons 500,000 outstanding shares for $26 million. On June 15, 2012, Ponzi & Sons distributed cash dividends of $1 per share. For the year ended December 31, 2012, Ponzi & Sons reported a net loss of $15 million. At the end of the year, the fair value of the shares is $32 million. What amount will Madoff Investment record the investment in Ponzi & Sons at on their December 31, 2012 Balance Sheet? 6 26 w5 a. $32 million b. $26 million c. $20 million d. $19.8 million e. None of the above 26-

e. None of the above 2 40% P10. On January 1, 2012, Madoff Investments purchased 200,000 of Ponzi & Sons 500,000 outstanding shares for $26 million. On June 15, 2012, Ponzi & Sons distributed cash dividends of $1 per share. For the year ended December 31, 2012, Ponzi & Sons reported a net loss of $15 million. At the end of the year, the fair value of the shares is $32 million. What amount will Madoff Investment record the investment in Ponzi & Sons at on their December 31, 2012 Balance Sheet? 6 26 w5 a. $32 million b. $26 million c. $20 million d. $19.8 million e. None of the above 26-

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter10: Stockholder's Equity

Section: Chapter Questions

Problem 6MCQ: Ames Corporation repurchases 10,000 shares of its common stock for $12 per share. The shares were...

See similar textbooks

Similar questions

Ames Corporation repurchases 10,000 shares of its common stock for $12 per share. The shares were originally issued at an average price of $10 per share. Later it resells 6,000 of the shares for $15 per share and the remaining 4,000 shares for $17 per share. How much gain or loss should Ames report on its income statement as a result of these transactions? $38.000 gain $0 $20,000 loss $20,000 loss and $38,000 gain
Ponce Towers, Inc., had 50,000 shares of common stock and 10,000 shares of 100 par value, 8% preferred stock outstanding on January 1, 2011. Each share of preferred stock is convertible into four shares of common stock. The stock has not been converted. During the year, Ponce Towers issued additional shares of common stock as follows: For 2011, Ponce Towers, Inc., had income from continuing operations of 545,000 and a 72,000 loss from discontinued operations (net of tax). Open the file EPS from the website for this book at cengagebrain.com. Enter all input items (AF) in the appropriate cells in the Data Section. Enter all formulas in the appropriate cells in the Answer Section. Enter your name in cell A1. Save the completed file as EPS2. Print the worksheet when done. Also print your formulas. Check figure: Basic earnings per share from continuing operations (cell D29), 5.94.
26. In 2014, Rona Company issued 5,000 shares of P10 par value for P100 per share. In 2015, the entity acquired 2,000 of the shares at P150 per share and immediately cancelled these 2,000 of the shares at P150 per share and immediately cancelled these 2,000 shares. In connection with the retirement of the shares, what amount is debited respectively to share premium and retained earnings?
On January 1, 2008, Lallo Company purchased 15% of Vintar Company’s ordinary shares for P20,000,000. Thefollowing data concerning Vintar Company are available:2008Net incomeP6,000,000Cash dividend paid None2009Net incomeP7,000,000Cash dividend paid15,000,000In its income statement for the year ended December 31, 2009, how much should Lallo report as income from this investment?
Power Corporation purchased a 70% interest in Star Company on January 1, 2013 for P140,000, when Star’s stockholders’ equity consisted of P30,000 common stock, P100,000 additional paid-in-capital, and P200,000 retained earnings. Income and dividends data for Star are as follows: Net income (or loss) P50,000 Dividends 5,000 NCI is measured at fair value What is the NCI at December 31, 2013? P149,600 P148,000 P73,500 P151,370
9.On January 1, 2021, White Company acquired 25,000 shares of Black Company for P900,000. Black has 100,000 total outstanding shares. Black’s assets and liabilities approximate their fair values. In 2021, Black reported profit of P2,000,000, declared and paid cash dividends of P600,000 and reported property revaluation decrease of P80,000. In its financial statements for the year ended December 31, 2021, how much should White Company report as share in the associate’s profit and investment in associate, respectively? 500,000 ; 1,170,000 500,000 ; 1,270,000 500,000 ; 1,230,000 500,000 ; 1,270,000
10 On July 1, 2015, Cleopatra Corporation acquired 25% of the shares of Marcus, Inc. for P1,000,000. At that date, the equity of Marcus was P4,000,000, with all the identifiable assets and liabilities being measured at amounts equal to fair value. The table below shows the profits and losses made by Marcus during 2015 to 2019: Year Profit (Loss) 2015 200,000 2016 2,000,000 2017 2,500,000 2018 160,000 2019 300,000 How much will the Investment in Associate account be debited/credited in 2018? Group of answer choices No entry P40,000 Dr. P1,035,000 Cr. P1,060,000 Cr.
On July 1, 2023, Jerry Corporation acquired 25% of the shares of Von, Inc. for P1,000,000. At that date, the equity of Von was P4,000,000, with all the identifiable assets and liabilities being measured at amounts equal to fair value. The table below shows the profits and losses made by Von during 2003 to 2007: Year Profit (Loss)2023 P200,0002024 (2,000,000)2025 (2,500,000)2026 160,0002027 300,000 1. The carrying amount of the investment in Von, Inc. as of December 31,2024 is2. The amount to be recognized in 2025 profit or loss related to the investment in Von, Inc. is3. The amount to be recognized in 2026 profit or loss related to the investment in Von, Inc. is4. The amount to be recognized in 2027 profit or loss related to the investment in Von, Inc. is5. The amount of the investment in Von, Inc. as of December 31,2027 is6. Prepare all journal entries from 2023 to 2027
36 On June 1, 2020, Ping Corp. purchased 10,000 of Pong’s 50,000 outstanding shares at a price of P6.00 per share. Pong had earnings of P3,000 per month during 2020 and paid dividends of P10,000 on March 1, 2020 and P12,500 on December 1, 2020. The fair value of Pong’s shares was P6.50 per share on December 31, 2020. Which statement is correct? Group of answer choices Assuming that the investment is FVTPL, the total effect on Ping’s profit or loss for the year ended December 31, 2020 is P2,500 After all closing entries for 2020 are completed, the effect of the increase in fair value on total shareholders' equity would be the same amount under the FVTOCI and FVTPL approaches. Assuming that the investment is an associate, the total effect on Ping’s profit or loss for the year ended December 31, 2020 is P3,600. Assuming that the investment is FVTOCI, the total effect on Ping’s profit or loss for the year ended December 31, 2020 is P7,500.
5. On June 1, 2020, Ping Corp. purchased 10,000 of Pong’s 50,000 outstanding shares at a price of P6.00 per share. Pong had earnings of P3,000 per month during 2020 and paid dividends of P10,000 on March 1, 2020 and P12,500 on December 1, 2020. The fair value of Pong’s shares was P6.50 per share on December 31, 2020. Which statement is correct? Group of answer choices After all closing entries for 2020 are completed, the effect of the increase in fair value on total shareholders' equity would be the same amount under the FVTOCI and FVTPL approaches. Assuming that the investment is FVTPL, the total effect on Ping’s profit or loss for the year ended December 31, 2020 is P2,500. Assuming that the investment is FVTOCI, the total effect on Ping’s profit or loss for the year ended December 31, 2020 is P7,500. Assuming that the investment is an associate, the total effect on Ping’s profit or loss for the year ended December 31, 2020 is P3,600.
On January 1, 2021, Heaven Inc. reported the following shareholders' equity: Preference share capital (P75 par value, 20,000 shares) P 1,500,000 Ordinary share capital (P25 par value, 100,000 shares) 2,500,000 Share premium 3,000,000 Retained earnings 2,250,000 At the beginning of 2021, Heaven Inc sold for cash 20,000 additional ordinary shares for P45 per share. It was discovered late in 2021 that 2020 depreciation expense was overstated by 500,000. Heaven Inc. had a net income of P2,000,000 for 2021. It also declared cash dividend of P500,000 on preference shares and P1,000,000 on its ordinary shares during 2021. What amount should be reported as the corrected retained earnings on January 1, 2021 before tax? A. 2,750,000B. 2,250,000C. 3,750,000D. 2,500,000
On January 1, 2021, Heaven Inc. reported the following shareholders' equity: Preference share capital (P75 par value, 20,000 shares) P 1,500,000 Ordinary share capital (P25 par value, 100,000 shares) 2,500,000 Share premium 3,000,000 Retained earnings 2,250,000 At the beginning of 2021, Heaven Inc sold for cash 20,000 additional ordinary shares for P45 per share. It was discovered late in 2021 that 2020 depreciation expense was overstated by 500,000. Heaven Inc. had a net income of P2,000,000 for 2021. It also declared cash dividend of P500,000 on preference shares and P1,000,000 on its ordinary shares during 2021. How much the total shareholders' equity on December 31, 2021? A. 9,650,00B. 11,150,000C. 6,650,000D. 8,150,000