North Land Company acquired 30,000 shares of the ordinary share of Shaver Corp. in July 2021. This acquisition gave North Land Company significant influence over Shaver Corp. On December 2021, Shaver announced a P100,000 net income for 2021 and declared a cash dividend of P.50 per share on its 100,000 shares of outstanding ordinary share. How much dividend income will North Land Company recognize in its Statement of Profit or Loss?

Q: On January 2, 2020, Tuao Company purchased 10% of Abulug Company's outstanding ordinary shares for…

A: GIVEN   On January 2, 2020, Tuao Company purchased 10% of Abulug Company's outstanding ordinary…

Q: On January 1, 2021, Alamar Corporation acquired a 41 percent interest in Burks, Inc., for $233,000.…

A: Given: % investment is 41%  Amount = $233,000 Net income = $82,000 Cash dividend paid = $28,000

Q: On January 1, year 1, DEF Company purchased 80% of the stock of UVW for P4,000,000 cash. Prior to…

A: GIVEN   On January 1, year 1, DEF Company purchased 80% of the stock of UVW for P4,000,000 cash.…

Q: On January 2, 2020, Tuao Company purchased 10% of Abulug Company's outstanding ordinary shares for…

A: The investment in shares of another company gets increased by net profit and gets decreased by…

Q: On December 31, 2020, Naengmyeon Company, an entity with no subsidiary, purchased 10,000 ordinary…

A: Carrying Value of an Investment calculated by adding the investments with proportionate return of…

Q: On June 30, 2021, ABC Company acquired 50,000 representing 25% ownership interest in Arthur…

A: Investment is the asset or security bought to earn returns from the same in future.

Q: What amount shall Tom Company recognize in profit or loss for the year 2021 if it is able to…

A: Acquisition of other company means when one company is being acquired by another and it also…

Q: Unit IV question 3

A: A journal entry is a type of accounting entry used to record a business transaction in a company's…

Q: On July 1, 2023, Jerry Corporation acquired 25% of the shares of Von, Inc. for P1,000,000. At that…

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

Q: On July 15, 2021, Max Co. acquired 25,000 shares of Chicken Co. for P250,000 which includes P1 cash…

A: The acronym "FVPL" stands for Fair Value Through Profit or Loss, these types of securities are not…

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

A: Workings: Mathew company owns 30% of voting stock in Lindman company. On January 1, 2018 Investment…

Q: Herbert, Inc., acquired all of Rambis Company’s outstanding stock on January 1, 2020, for $617,000…

A: a. i. Particulars Amount Herbert (parent) balance - 01/01/2020 430000 Herbert Income - 2020…

Q: Ivanhoe, Inc. acquired 30% of Tamarisk Corporation's voting stock on January 1, 2021 for $ 1020000.…

A: Share in income earned in 2021 = Income earned x 30% = $406000*30% = $121,800

Q: On July 1, 2021, Gupta Corporation bought 25% of the outstanding common stock of VB Company for $100…

A: Requirement 1:   Pass a journal entry to record investment in shares.

Q: On July 1, 2018, Gupta Corporation bought 25% of the outstanding common stock of VB Company for $100…

A: 1. Prepare necessary journal entries for the given transactions. Working note 3:

Q: 9.On January 1, 2021, White Company acquired 25,000 shares of Black Company for P900,000.  Black has…

A:

Q: Tulip Corp. purchased 300,000 shares of common stock in Sherman Co. for $50 per share on January 2,…

A: Income statement is the financial statement which is prepared to show the profitability of an…

Q: dends each year. Roberts reported net income of $50,000 in 2020 and $57,000 in 2021 and paid $12,000…

A:

Q: Herbert, Inc., acquired all of Rambis Company’s outstanding stock on January 1, 2020, for $592,000…

A: The question is based on the concept of Financial Accounting.

Q: Henesto Company's investment account has the following transaction during the year: Jan. 10, 2020…

A: Hello. Since your question has multiple sub-parts, we will solve the first three sub-parts for you.…

Q: On July 1, 2018, Tremen Corporation acquired 40% of the shares of Delany Company. Tremen paid…

A: Investment is the amount which is put into some assets or securities to gain some returns in future.…

Q: Herbert, Inc., acquired all of Rambis Company’s outstanding stock on January 1, 2020, for $592,000…

A: Consolidated retained earnings refer to the shareholders' equity component on the consolidated BS…

Q: On January 1, 2021, Alamar Corporation acquired a 36 percent interest in Burks, Inc., for $198,000.…

A: As Mentioned question number 03 to answer so we are only answering that.

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, 2018, Alamar Corporation acquired a 40 percent interest in Burks, Inc., for $210,000.…

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

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: Prepare the necessary journal entries to record the above How much is the carrying value of the…

A: Hello. Since your question has multiple sub-parts, we will solve the first three sub-parts for you.…

Q: On January 1, 2021, Ildiko Corporation purchased a 35% interest in the common shares of Rance Ltd.…

A: In case of equity method of accounting for Investment then Investment income will be assessee share…

Q: On January 1, 2021, Alamar Corporation acquired a 36 percent interest in Burks, Inc., for $198,000.…

A: Dividend = Total dividend paid x 36% = $24000 x 36% = $8,640

Q: On January 1, 2019, Lallo Company purchased 15% of Vintar Company’s ordinary shares for P20,000,000.…

A: Income from investment reported in income statement for the year ended December 31, 2020 = Total…

Q: On October 15, 2020, the Liza Company received a liquidating dividend of P100,000 from Edward…

A: Equity method of accounting is followed when the holding company has a significant influence in…

Q: earnings

A:

Q: On January 2, 2020, Samantha Company bought 10% of Camille Company's outstanding ordinary shares for…

A: The amount that Samantha Co. should report as investment in Camille Co. is as Follows.

Q: Herbert, Inc., acquired all of Rambis Company’s outstanding stock on January 1, 2020, for $652,000…

A: GIVEN   Herbert, Inc., acquired all of Rambis Company’s outstanding stock on January 1, 2020, for…

Q: On July 15, 2021, Max Co. acquired 25,000 shares of Chicken Co. for P250,000 which includes P1 cash…

A: The realized gain refers to the gain that is converted into cash by the company by selling off the…

Q: On August 31, 2020, Laida Corporation purchased all the net assets of Magtalas Corporation by…

A: Share Premium Share premium is the addition revenue which are derived in the business after issuing…

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: On January 1, 2021, Alamar Corporation acquired a 42 percent interest in Burks, Inc., for $185,000.…

A: Introduction: Journal: Recording of a business transactions in a chronological order. First step in…

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: At the beginning of 2022, CPA Company purchased 20% of ACCA Corp’s ordinary shares outstanding for…

A: The equity method refers to an accounting method employed to compute and report the income on the…

Q: On January 1, 2021, Alamar Corporation acquired a 36 percent interest in Burks, Inc., for $198,000.…

A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…

Q: On August 31, 2020, Laida Corporation purchased all the net assets of Magtalas Corporation by…

A: The share premium account balance cannot be utilized for distributing dividends but can be utilized…

Q: On January 1, 2018, Cameron Inc. bought 20% of the outstanding common stock of Lake Construction…

A: 1.Journal entries--year 2018

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 1, 2020, Citrus purchased 200,000 shares representing 45 percent of the outstanding…

A: Citrus long term investment in Berry should be shown in Citrus December 31, 2020, statement of…

Q: Borgin inc. owns 30% of the outstanding voting common stock of Burkes Co. and has the ability to…

A: Balance in the investment account at the end of the year is the summation of the initial investment…

Q: On March 1, 2022, Dolor Company purchased 5,000 shares of Susan Incorporated paying P12 each share…

A: As per IAS 39, Financial instruments recognition and measurement,  Their is an irrevocable…

Q: On January 1, 2021, Alamar Corporation acquired a 36 percent interest in Burks, Inc., for $218,000.…

A: Share in income  = net income  x holding % = 76000*36% = $27,360

Q: On January 1, 2021, Alamar Corporation acquired a 36 percent interest in Burks, Inc., for $198,000.…

A: Solution:- Preparation of journal entry for the 36 percent income earned by Alamar from this…

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.