lech Co. and Robpotics CO. are joint
Q: A printing machine is bought at P 1.5 million and is estimated to have a salvage value of P100,000 a...
A: The accumulated annual depreciation expense based on units produced is calculated by first dividing ...
Q: Problem 4: On January 1, 2017, an entity purchases marketable equity securities for P2,000,000. The ...
A: When entity has elected to measure the change in the fair value through other comprehensive income t...
Q: At the beginning of the current year, an entity acquired 40% of the outstanding ordinary shares of a...
A: Investment income is the earnings of the company made from the holding of shares in another company.
Q: The TimpRiders LP has operated a motorcycle dealership for a number of years. Lance is the limited p...
A: Introduction Partners basis is the partners interest in partner ship, partnership tax law often refe...
Q: Mr. Allen is a 65-year-old Jamaican tax resident. He is the director of a hotel, Allen’s Rest Well R...
A: Considering Jamaica tax rates citizens who are aged more than or equal to 65 years are given an exem...
Q: For May, determine a) the cost of goods manufactured and b) the cost of goods sold
A: Cost of Goods Manufactured = Beginning Work In Process + Total Manufacturing Cost - Ending Work In P...
Q: Congratulations on your appointment as a Tax Trainee at a recognized audit firm in Jamaica. On your...
A: Solution Capital allowance is the practice of allowing tax payers to get relief on capital expenditu...
Q: How should NEFRARIOUS account for the fixed consideration and the contract costs, respectively?
A: Contract is the agreement which is made between the parties whereby one party has agreed to provide ...
Q: PROBLEM 3: Effects of errors to retained earnings. While preparing the 2019 financial statements, Am...
A: Lets understand the basics. When any error is made in reporting any expense and because of that, net...
Q: Below are four asset purchases made in 2018. Asset Cost ...
A: Amortization: An amortization is a bookkeeping method used to intermittently bring down the book val...
Q: Required information [The following information applies to the questions displayed below.] a. Wages ...
A: Solution A journal is a company's official book in which all business transaction are recorded in ch...
Q: (d) Journalize the closing entries from the financial statement columns of the worksheet.
A: Closing entries are passed at the end of the accounting period for some required adjustments.
Q: E1. You deposited $10,000 in a savings account nine years ago. The account has earned 5.55% interest...
A:
Q: An item of p- O True O False
A: Real property means any item which may be factored into the property value.
Q: Happy Company provided the following profit(loss) relating to operating segments: A- 2,000,000; B - ...
A: Accounting standard related with segment reporting means all rules, regulations and guidelines desig...
Q: Journal entry worksheet 1 On December 31, the company provides consulting services and bills its cus...
A: Adjusting Entry – Adjusting Entries are the entries that make the accrual principle work for the org...
Q: Q-3 MNP Ltd sold 2,75,000 units of its product at 375 per unit. Variable costs are 175 per unit (man...
A: Answer i) Calculation of Break-even Sales Quantity Breakeven Sales quantity = Total fixed cost/ Cont...
Q: 2. As supervisor of a facilities engineering department, you consider mobile cranes to be critical e...
A: PW Method The present worth approach is frequently used in various industry because it reduces all ...
Q: After 10 years, the estimated price of an apartment of 20 pyeong is 200 million won. If you save a c...
A: PRESENT VALUE = FUTURE VALUE / PVAF(10%, 10 YEARS) = 200/ 6.1446 = 32.55 Million Postion of Cumula...
Q: Using the FIFO method, prepare the following for the Assembly a. A physical flow schedule b. An equi...
A: FIFO termed as First in First Out which is a method inventory that determine the cost on the grounds...
Q: E4. What is the effective annual interest rate if a credit union pays 4.125% interest (a) compounded...
A: The effective annual interest rate is computed using the following formula: - Effective Annual Inter...
Q: What is a tax consequence for a noncorporate shareholder who receives a liquidating distribution fro...
A: Tax consequences is the consequences which occur as a result of certain transactions has taken place...
Q: is’ production data for a new deluxe product were taken from the most recent quarterly production bu...
A: Solution: Direct labor cost for the quarter represents total direct labor cost for standard units an...
Q: The plant assets section of the comparative balance sheets of Anders Company is reported below. ANDE...
A: Accumulated Depreciation on sold Building = Original cost - Book value = $300,000 - $70,000 = $230,0...
Q: B. By using the format provided below, indicate the effects of the following transaction on the asse...
A: 1. Accounting Equation - Accounting Equation is calculated using following equation - Assets = Liabi...
Q: Bless Qulinto began operating the Quinto Modeling Agency with following: Invested cash of P500,000 a...
A: The accounting equation states that assets equal to sum of liabilities and equity. Assets = Liabilit...
Q: What are taxes
A: Tax: In the United States, taxes are forced payments placed on people and companies by a government ...
Q: Tanner-UNF Corporation acquired as a long-term investment $260 million of 7.0% bonds, dated July 1, ...
A: Solution 1 & 2: Journal Entries - Tanner UNF Event Date Particulars Debit (In Milli...
Q: Zach allows Jen to store her car in Zach's driveway for $20 per month while Jen is out of the countr...
A: A contract is the agreement of terms in which one party agrees to buy for the services of the anothe...
Q: This year, individual Kale and individual Spinach formed Leafy Green Partnership. Kale contributed $...
A: Partnership characteristics includes: Existence of an agreement Existence of business Sharing of pr...
Q: Equipment with a cost of R500 000 is purchased and R200 000 is paid immediately on 1 January 2016. T...
A: As per IAS 16 Fixed asset purchased is to be measured cost of purchase and other costs that are nece...
Q: Below is the exercice and solutions but I don't understand the solution, for example the cash collec...
A: Cash budget is prepared keeping in mind the flow of cash in the firm or out of the firm considering ...
Q: QUIRED: Identify business and nonbusiness transactions
A: Business transactions are identified as economic events that are made with a third party and these a...
Q: The plant assets section of the comparative balance sheets of Anders Company is reported below. ANDE...
A: To determine the cash received from the sale of the asset we will use the book value figure of the a...
Q: he production department of Zan Corporation has submitted the following forecast of units to be prod...
A: Solution 1 and 2: Zan Corporation Direct Materials Budget 1st 2nd 3rd 4th Quarter Qua...
Q: On March 31, 2021, Chow Brothers, Inc., bought 8% of KT Manufacturing’s capital stock for $51.5 mill...
A: Investment means to put the money in some kind of asset to earn the returns at a future date.
Q: Please map of the skills provided below into a set of skills that a working team need. a. Commitment...
A: Working team requires sets of skills in order to achieve their goals with effectiveness and efficien...
Q: Perez Company acquires an ore mine at a cost of $1,400,000. It incurs additional costs of $400,000 t...
A: Req-1 Cost ($1400000 + $400000) $18,00,000 Salvage $2,00,000 Amount subjected to depletion (...
Q: 5. Nike has the following transactions related to notes receivable during the last two months of 200...
A:
Q: Mills Corporation acquired as a long-term investment $300 million of 7% bonds, dated July 1, on July...
A: Since you have posted question with multiple sub-parts , we will do the first three sub-parts for yo...
Q: Requirement: Complete the schedule below by entering an Q to indicate overstatement, a U to indicate...
A: Below mentioned sign to be used for Overstatement = O Understatement = U No Effect = NE
Q: The adjusted trial balance for Chiara Company as of December 31 follows. Debit Credit Cash $ 127,000...
A: Income statement refers to the total of income less expenses.
Q: a. Return on equity b. Total assets turnover c. Return on assets d. Current ratio e. Receivables tur...
A: a. Return on equity = Net Income / Shareholders' Equityb. Total assets turnover = Sales / Total Asse...
Q: As a long-term investment at the beginning of the 2021 fiscal year, Florists International purchased...
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal....
Q: The following information pertains to the White Company and its divisions for the year ended Decembe...
A: Segment revenue is the amount of revenue which is attributable to segment and it includes the extern...
Q: Totals 35,970 | 55,970 Other data: 1. Supplies on hand total Tk 480. 2. Depreciation is Tk 800 per q...
A: Supplies on hand TK 480 Depreciation TK 800 per qtr Interest Accrued on 6 months No...
Q: On January 1, the Matthews Band pays $65,800 for sound equipment. The band estimates it will use thi...
A: "We’ll answer the first question since the exact one wasn’t specified. Please submit a new question ...
Q: n, Inc. uses the high-low method to analyze cost behavior. The company observed that at 17,000 machi...
A: Solution; Variable cost per unit will be computed in this case through high low method. Then Fixed c...
Q: Required information Problem 6-2A Calculate ending inventory, cost of goods sold, sales revenue, and...
A: Inventory is one of the important current asset of the business. Under specific identification metho...
Q: a. Paid $40,000 cash to replace a motor on equipment that extends its useful life by four years. b. ...
A: Solution 1: Expenditure that increase the potential benefits from assets is considered as capital ex...
Ansswer only
Step by step
Solved in 2 steps
- Tech Co. and Robotics Co. are joint venturers of Mecha Co., a producer of high tech machinery. Tech and Robotics, each have a 50% interest in the net assets of Mecha Co. During the year, Tech Co. earns revenue of P1,000,000 from its own operations while Mecha Co. reports revenue of P400,000. How much total revenue shall be reported in Tech Co.'s statement of profit or loss for the year?On January 1, Intergen, Inc., invests $200,000 for a40 percentinterest in Ryan, a new jointventure with two other partners, each investing $150,000 for 30 percent interests. Intergen plansto sell all of its production to Ryan, which will resell the inventory to retail outlets. The equitypartners agree that Ryan will buy inventory only from Intergen. Also, Intergen plans to use theequity methodfor financial reporting.During the year, Intergen expects to incur costs of $850,000 to produce goods with a final retailmarket value of $1,200,000. Ryan projects that, during this year, it will resell three-fourths ofthese goods for $900,000. It should sell the remainder in the following year.The equity partners plan a meeting to set the price Intergen will charge Ryan for its production.One partner suggests a transfer price of $1,025,000but is unsure whether it will result in anequitable return across the equity holders. Importantly, Intergen agrees that its total rate of return(including its…BuyCo, Incorporated, holds 21 percent of the outstanding shares of Marqueen Company and appropriately applies the equity method of accounting. Excess cost amortization (related to a patent) associated with this investment amounts to $11,100 per year. For 2023, Marqueen reported earnings of $111,000 and declares cash dividends of $29,000. During that year, Marqueen acquired inventory for $43,000, which it then sold to BuyCo for $86,000. At the end of 2023, BuyCo continued to hold merchandise with a transfer price of $29,000. What Equity in Investee Income should BuyCo report for 2023? How will the intra-entity transfer affect BuyCo’s reporting in 2024? If BuyCo had sold the inventory to Marqueen, would your answers to parts (a) and (b) change?
- BuyCo, Inc., holds 24 percent of the outstanding shares of Marqueen Company and appropriately applies the equity method of accounting. Excess cost amortization (related to a patent) associated with this investment amounts to $11,400 per year. For 2020, Marqueen reported earnings of $114,000 and declares cash dividends of $33,000. During that year, Marqueen acquired inventory for $56,000, which it then sold to BuyCo for $70,000. At the end of 2020, BuyCo continued to hold merchandise with a transfer price of $32,000. What Equity in Investee Income should BuyCo report for 2020? How will the intra-entity transfer affect BuyCo’s reporting in 2021? If BuyCo had sold the inventory to Marqueen, would the answers to (a) and (b) have changed?BuyCo, Inc., holds 25 percent of the outstanding shares of Marqueen Company and appropriately applies the equity method of accounting. Excess cost amortization (related to a patent) associated with this investment amounts to $10,700 per year. For 2020, Marqueen reported earnings of $115,000 and declares cash dividends of $30,000. During that year, Marqueen acquired inventory for $60,000, which it then sold to BuyCo for $75,000. At the end of 2020, BuyCo continued to hold merchandise with a transfer price of $28,000. What Equity in Investee Income should BuyCo report for 2020? How will the intra-entity transfer affect BuyCo’s reporting in 2021? If BuyCo had sold the inventory to Marqueen, would the answers to (a) and (b) have changed? (For all requirements, do not round intermediate calculations.)BuyCo, Inc., holds 28 percent of the outstanding shares of Marqueen Company and appropriately applies the equity method of accounting. Excess cost amortization (related to a patent) associated with this investment amounts to $12,000 per year. For 2020, Marqueen reported earnings of $119,000 and declares cash dividends of $34,000. During that year, Marqueen acquired inventory for $60,000, which it then sold to BuyCo for $75,000. At the end of 2020, BuyCo continued to hold merchandise with a transfer price of $27,000. What Equity in Investee Income should BuyCo report for 2020? How will the intra-entity transfer affect BuyCo’s reporting in 2021? If BuyCo had sold the inventory to Marqueen, would the answers to (a) and (b) have changed? Equity in investee income $19,052selected answer incorrect b. Equity accrual for 2021 will be increasedselected answer correct by $2,117selected answer incorrect c. If BuyCo had sold the inventory to Marqueen, would your answers above…
- Wang Acquires 100% of Chen on January 1,2010 and will operate Chen as a separate subsidairy. In the first year of operation, Chen has a net income of 70,000 and pays dividends of 50,000 and that there is $3000 of excess annual amortization associated with Chens equipment. C. Assume Wang uses the partial equity method to account for its investment. What entries will Wang record on its books on December 31, 2010 for Chen's income, dividends and excess amortization. D. Same as C, what consolidation worksheet entries will Wang record for Chen's income, dividends and excess amortization. E. Assume Wang uses the cost method to account for its investment. What entries will Wang record on its books on December 31, 2010 for Chen's income, dividends and excess amortization. F. Same as E, what consolidation worksheet entries will Wang record for Chen's income, dividends and excess amortization. Please answer all partsAs a long-term investment, Painters’ Equipment Company purchased 20% of AMC Supplies Ltd’s 400,000 shares for OMR480,000 at the beginning of the financial year of both companies. On the purchase date, the fair value and the book value of AMC’s net assets were equal. During the year, AMC earned net income of OMR250,000 and distributed cash dividends of OMR0.250 per share. At year-end, the fair value of the shares is OMR505,000. Required: 1.Assume no significant influence was acquired. Prepare the appropriate journal entries from the purchase through the end of the year. (Cost Method) 2.Assume significant influence was acquired. Re-enact the appropriate journal entries from the purchase through the end of the year to report the investment balance in the consolidated financial statements of Painters’ Equipment Company. (Equity Method)Matthew, Inc., owns 30 percent of the outstanding stock of Lindman Company and has the ability to significantly influence the investee’s operations and decision making. On January 1, 2021, the balance in the Investment in Lindman account is $408,000. Amortization of excess fair value associated with the 30% ownership is $9,500 per year. In 2021, Lindman earns an income of $181,500 and declares cash dividends of $60,500. Previously, in 2020, Lindman had sold inventory costing $40,200 to Matthew for $67,000. Matthew consumed all but 30 percent of this merchandise during 2020 and used the rest during 2021. Lindman sold additional inventory costing $44,800 to Matthew for $80,000 in 2021. Matthew did not consume 40 percent of these 2021 purchases from Lindman until 2022. What amount of equity method income would Matthew recognize in 2021 from its ownership interest in Lindman? What is the equity method balance in the Investment in Lindman account at the end of 2021?
- Senpai Company acquires 15% of Kohai Company’s common stock for P600,000 cash and carries the investment using the cost model. A few months later, Senpai purchases another 60% of Kohai Company’s stock for P2,592,000. At that date, Kohai Company reports identifiable assets with a book value of P4,680,000 and a fair value of P6,120,000, and it has liabilities with a book value and fair value of P2,280,000. The fair value of the 25% non-controlling interest in Kohai Company is P1,080,000. Compute the amount of goodwill, using full-goodwill or fair value basis approach.Senpai Company acquires 15% of Kohai Company’s common stock for P600,000 cash and carries the investment using the cost model. A few months later, Senpai purchases another 60% of Kohai Company’s stock for P2,592,000. At that date, Kohai Company reports identifiable assets with a book value of P4,680,000 and a fair value of P6,120,000, and it has liabilities with a book value and fair value of P2,280,000. The fair value of the 25% non-controlling interest in Kohai Company is P1,080,000. Compute the amount of goodwill, using full-goodwill or fair value basis approach: Group of answer choices None of the given P360,000 None P480,000Senpai Company acquires 15% of Kohai Company’s common stock for P600,000 cash and carries the investment using the cost model. A few months later, Senpai purchases another 60% of Kohai Company’s stock for P2,592,000. At that date, Kohai Company reports identifiable assets with a book value of P4,680,000 and a fair value of P6,120,000, and it has liabilities with a book value and fair value of P2,280,000. The fair value of the 25% non-controlling interest in Kohai Company is P1,080,000. Compute the amount of goodwill, using full-goodwill or fair value basis approach: a. 480,000 b. 360,000 c. None of the given d. None