For what amount is worksheet entry “D” (Dr. Investment.  Cr. Dividends Paid) prepared for ?

Q: The gain on sale of investment is

A: Santo is able to exercise significant influence on Nino and accordingly the investment would be…

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

A: Given that: Purchase price of 20,000 shares = P300,000 Market price of shares = P500,000

Q: BuyCo, Inc., holds 21 percent of the outstanding shares of Marqueen Company and appropriately…

A: As per the equity method, the value of the investment is recognized at cost, and that value is…

Q: John Reardon purchased 100 shares of Tomco Corporation in December 2019 at a total cost of $1,762.…

A: The capital gain realized is calculated as the difference of sale price and buying price. Holding…

Q: Santo, Inc. acquired 30% of Nino Corp.'s voting stock on January 1, 2019 for P360,000. During 2019,…

A: To calculate gain on sale of investment or re measurement, first we should compute the carrying…

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: Superior Company owns 40% of the outstanding stock of Bernard Company. During 2018, Bernard paid…

A: Investments:   Companies invest in stocks and bonds of other companies or governmental entity to…

Q: Franklin Co. owns 40% of the voting common stock of Academic Services Inc. Franklin uses the equity…

A: Formula: Balance in the investment account as of December 31, 2021 = Beginning investment balance +…

Q: Justin acquires 90% of the voting common shares of Stevens on January 1, 2019. In 2010, Justin pays…

A: % acquired by Justin = 90%

Q: BuyCo, Inc., holds 24 percent of the outstanding shares of Marqueen Company and appropriately…

A: Equity investee means any Person in which the company or any subsidiary holds an ownership interest…

Q: , King is a stockholder of Ara Corporation, In 2018, he received as dividend from the latter 150…

A: Stock Dividend describes the dividend payment made to shareholders in form of own company's shares…

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

A:

Q: On October 1, 2020, Miya owns 15,000 fair value through other comprehensive income shares acquired…

A: The amount to be recorded as dividend income in 2020 is option (d) i.e. 66000

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

A:

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

A: Part 1:

Q: n January 1, 2020, Marin Co. purchased 25,000 shares (a 10% interest) in Elton John Corp. for…

A: An investment is a type of asset that is produced with the goal of allowing money to grow. One, you…

Q: Kim Company bought 30% of the shares of Phelps, Inc., at the start of 2018. Kim paid $10 million for…

A: Equity method is a method of recording The investment is recorded at the acquisition cost under…

Q: Harrison Company owns 20,000 of the 50,000 outstanding shares of Tammy, Inc. nmon sto Harrison uses…

A: The equity method is used to record the profit earned through its investment in another business.…

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

A:

Q: Santo, Inc. acquired 30% of Nino Corp.'s voting stock on January 1, 2019 for P360,000.  During 2019,…

A:

Q: If Apollo Company acquired a 30% interest in Twin Company on December 31, 2021 for P202,500 and…

A: The equity account of the company consists of all the money raised from the investors of the company…

Q: Suppose that AXE company acquires exactly 25% of the voting common stock of Company SARDAR Inc. for…

A: In case of an entity having significant influence i.e. less than 50% stake in other entity. The…

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

A: Equity Method: It is a method applied when one company has 20% to 50% ownership in another company.…

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: dams Industries holds 40,000 shares of FedEx common stock, which is not a large enough ownership…

A: Given data: Adams holds 40000 shares of fedex common stock. Which is not a large enough ownership…

Q: Gaw Company owns 15% of the common stock of Trace Corporation and used the fair-value method to…

A: Under fair value method of recording investment, net income includes only dividend amount received.…

Q: Kim Company bought 30% of the shares of Phelps, Inc., at the start of 2021. Kim paid $10 million for…

A: Equity method is a method of recording The investment is recorded at the acquisition cost under…

Q: On January 1, 2020, Culver Co. purchased 24,000 shares (a 10% interest) in Elton John Corp. for…

A: As Culver co. holding 30% of equity in john co. and can exercise significance influence ,equity…

Q: Santo, Inc. acquired 30% of Nino Corp.'s voting stock on January 1, 2019 for P360,000. During 2019,…

A:

Q: Simmons Corporation owns stock of Armstrong, Inc. Prior to 2020, the investment was accounted for…

A: The dividend revenue of $8,000 is obtained by multiplying the net income of $80,000 with the…

Q: kholders' equity on that date. On April 1, 2021, Lapwing sold 20% interest (one-fourth of its…

A: Compare the cash received to the item's carrying value to determine if you earned a profit or a loss…

Q: Santo, Inc. acquired 30% of Nino Corp.'s voting stock on January 1, 2019 for P360,000.  During 2019,…

A:

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: At the beginning of 2021, Nobela Corporation bought 15% ownership stake in Joseph Corporation for…

A: In the investment of associate, we valued the investment value at the end of each year by the equity…

Q: Santo, Inc. acquired 30% of Nino Corp.'s voting stock on January 1, 2019 for P360,000.  During 2019,…

A:

Q: On March 1, 2019, Carol Company bought the common shares of two companies with a 20% ownership share…

A: “Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

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

A: Income from investment to be included in the income statement: Our share of income in the company in…

Q: Santo, Inc. acquired 30% of Nino Corp.'s voting stock on January 1, 2019 for P360,000.  During 2019,…

A: In case of significant influence, Equity method is used for accounting of investment. As per equity…

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

A: Equity represents the capital of the company that is reported on the balance sheet of the company.

Q: Big owns 70% of Little and uses the equity method to account for its investment in Little. In 2020,…

A: Big's Share in dividend reports by Little = Dividend x holding % = $300,000 x 70% = $210,000

Q: On January 1, 2020, Orange Co. purchased a 35% interest in Lemon Co. for $800,000. Orange reports…

A: A company can purchase the equity shares of another company for the purpose of investment. If the…

Q: DeMilo, Inc., owns 100 percent of the 40,000 outstanding shares of Ricardo, Inc. DeMilo currently…

A: Equity method: Equity method is the method used for accounting equity investments which claim a…

Q: Suppose that AXE company acquires exactly 25% of the voting common stock of Company SARDAR Inc. for…

A: Cost method of investment valuation is to value the investment on the basis of the cost which has…

Q: In 2020, Angela Company held the following investments in ordinary shares: •     25,000 shares of…

A: When company receives dividends from its investment, dividend income gets credit to dividend income…

Q: William accounts for its investment in Baker Company under the equity method. William carried the…

A: Ending investment value = Beginning investment Value + Rate of ownership ( Net income - Dividend…

Q: Big owns 70% of Little and uses the equity method to account for its investment in Little. In 2020,…

A: In the given Problem, Big owns 70% of Little and uses the equity method to account for its…

Q: Santo, Inc. acquired 30% of Nino Corp.'s voting stock on January 1, 2019 for P360,000. During 2019,…

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

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.