Head owns 80% of Shoulders. Head reports Dividends of $300,000. Shoulders reports Net Income of $500,000 and Dividends of $100,000. a. How much is consolidated dividends b. How much dividends were paid by Shoulders to Head c. Prepare worksheet letter D to eliminate intercompany dividends Dr. __________________________________ $ Cr. ____________________________________________ $ d. How much dividends go to the noncontrolling interest shareholders ? e Are the dividends paid to the NCI shareholders an increase or reduction to NCI in stockholders equity ?

Head owns 80% of Shoulders. Head reports Dividends of $300,000. Shoulders reports Net Income of $500,000 and Dividends of $100,000. a. How much is consolidated dividends b. How much dividends were paid by Shoulders to Head c. Prepare worksheet letter D to eliminate intercompany dividends Dr. $ Cr. __________ $ d. How much dividends go to the noncontrolling interest shareholders ? e Are the dividends paid to the NCI shareholders an increase or reduction to NCI in stockholders equity ?

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter22: S Corporations

Section: Chapter Questions

Problem 4BCRQ

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Head owns 80% of Shoulders. Head reports Dividends of $300,000. Shoulders Report Net Income of $500,000 and Dividends of $100,000. How much dividends go to the noncontrolling interest shareholders? Are the dividends paid to the NCI shareholders an increase or reduction to NCI in stockholders equity?
Head owns 80% of Shoulders. Head reports Dividends of $300,000. Shoulders reports Net Income of $500,000 and Dividends of $100,000. d. How much dividends go to the noncontrolling interest shareholders ? e Are the dividends paid to the NCI shareholders an increase or reduction to NCI in stockholders equity ?
In each of the following independent situations, determine the dividends received deduction for the calendar year C corporation. Assume that Oak Corporation owns 25%, Elm owns 15% and Mahogany owns 60% of the stock in the corporations paying the dividends. OakCorporation ElmCorporation MahoganyCorporation Income from operations $650,000 $900,000 $825,000 Expenses from operations (525,000) (1,050,000) (830,000) Qualifying dividends 160,000 160,000 160,000 Click here to view the dividend received deduction ownership percentages and corresponding deduction percentage. a. The dividends received deduction for Oak Corporation is b. The dividends received deduction for Elm Corporation is c. The dividends received deduction for Mahogany Corporation is
Promise corp owns 70% of Brown corp and 25% of Grower corp. In addition, Brown owns 40% of Grower stocks. In 2021, Promise, Brown and Grower reported net income of $90,000, $60,000 and $40,000 and paid dividends of $45,000, $30,000 and $10,000 respectively. Instructions: 1. What amount of consolidated net income will Promise report for 2021. 2. What amount of income will be assigned to noncontrolling interest in 2021. 3. What amount of dividends will be assigned to noncontrolling interest in 2021.
Sandy Company owns 15,000 of the 100,000 ordinary shares of X Corporation. The investment is accounted as Financial Assets at Fair Value Through Profit or Loss (FA-FV-P/L) and has a carrying value of P3,300,000. X Corporation declared a 10% stock dividend but gave the investors the option to receive P210 per whole stock of dividend. How much cash will Sandy receive? In your solutions, show the journal entry to record the dividends if Sandy opted to receive cash. *
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House Plc owns 80% of the issued share capital of Window Plc and 25% of the issued share capital of Door Plc. The revenues for the year are as follows:House Plc GH¢1,500,000Window Plc GH¢1,000,000Door Plc GH¢160,000What amount for revenue should appear in the consolidated statement of profit or loss for the year?
On Jan 1, 20X8, Banawe Company purchased 80% of the outstanding shares of Malate Company at a cost of P4,000,000. On that date, Malate had P2,500,000 of capital stock and P3,500,000 of retained earnings. For 20X8, Banawe had income of P1,400,000 form its separate operations and paid dividends of P750,000. Malate on the other hand reported income of P325,000 and paid dividends of P150,000 on December 1, 20X8. All the assets and liabilities of Malate have book values equal to their fair market values. Assume all income was earned evenly throughout the year except for an intercompany transaction on October 1, 20X8 when Banawe purchased a machinery from Malate for P500,000. The book value of the machinery on that date amounted to P600,000 and accumulated depreciation of P400,000 and is already reflected in the income of Malate indicated above. The machinery is expected to have a remaining useful life of 5 years from the date of sale. In the December 31, 20X8 consolidated financial…
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Sounds Co. had 200,000 shares outstanding during 20x1. On April 1, 20x2, Sounds acquired 30,000 shares, and on September 1, 20x2, Sounds issued a 3-for-1 share split. Profits in 20x1 and 20x2 were P410,000 and P350,000, respectively. Requirement: What amounts should Sounds report as basic earnings per share in its 20x2 and 20x1 comparative statements of profit or loss?
At the beginning of the current year, WWW Company purchased 10% of RRR Company's outstanding ordinary shares for P4,000,000. WWW Company is the largest single shareholder in RRR and WWW's officers are a majority of RRR's board of directors. The investee reported net income of P5,000,000 for the current year and paid cash dividend of P1,500,000. What amount should be reported as investment in RRR Company at year-end?