On January 1, 2019, Blackpink Company purchased 50,000 shares of another entity for P3,600,000. On October 1, 2019, the entity received 50,000 stock rights from the investee. Each right entitled the shareholder to acquire one share for P80 for every 5 rights. The market price of the investee’s share was P100, December 1, 2019, the entity exercised all stock rights. How is the investment income upon exercise of rights?

Q: On January 1, 2020, Stellar Co. purchased 23,000 shares (a 10% interest) in Elton John Corp. for…

A: Inter group company accounting deals with accounting of related entities such as subsidiaries, etc.

Q: During the year 2021, David Company purchased 1,000 shares of Goliath Company ordinary shares at…

A:

Q: On January 1, 2021, Tan Beda Company acquired 10% of the 100,000 outstanding voting shares of Taint…

A: A statement of financial position is a statement that is used to report all the assets and…

Q: During the year 2021, David Company purchased 1,000 shares of Goliath Company ordinary shares at…

A: Value of investment on 31 dec 2022  = (1,000-400)x200 = P120,000 Value of investment on 31 dec 2021…

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

A: An investment in other entity can be recorded using two methods; 1) Fair value method, and 2) Equity…

Q: During the year 2021, Pal Company purchased 1,000 shares of Pak Company ordinary shares at P150 per…

A: No. of shares held as on December 31, 2022:   No. of shares Shares purchased in the year 2021…

Q: On January 1, 2021, the Swiss Company purchased 10,000 ordinary shares at P80 per share to be…

A: Right shares are the shares issued after original issue to the existing shareholder to purchase more…

Q: de Incorporated declared and paid dividends of P250,000 in 2021 and reported net income of…

A: Tan Beda acquired 10% voting shares in Taint Dude .  10% is very low amount for controlling…

Q: On January 1, 2020, PQR Company purchased 40,000 shares of Frank, Inc. at P100 per share. The…

A: Initial measurement of investment: Initially, the value of an investment property is determined by…

Q: Dahlia Company has 35,000 ordinary shares of Amelie Corporation as an investment in equity…

A: Realized Gain on Sale:- It is a result of the selling of assets at a price higher than the original…

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

A: Part 1:

Q: . On January 1, 2020, Santos Ltd. purchased 30% of Yardley Co.'s 50,000 outstanding common shares at…

A: Journal entries are those entries which are recorded in the journal book at the time when-ever a…

Q: During the year 2021, Pal Company purchased 1,000 shares of Pak Company ordinary shares at P150 per…

A: Answer:-  Ordinary share meaning:- Ordinary shares, sometimes also called as common shares, are…

Q: On July 1, 2019, Tremen Corporation acquired 48% of the shares of Delany Company. Tremen paid OMR…

A: Financial accounting: Financial accounting is the process of recording, summarizing, and reporting…

Q: On January 2, 2020, Theodora Company purchased 40,000 shares of Byzantine, Inc. stock at P100 per…

A: Solution: Cost of the investment = Purchase cost + brokerage - dividend  = 40000*100 + 120000 -…

Q: During the year 2021, Pal Company purchased 1,000 shares of Pak Company ordinary shares at P150 per…

A: As per Accounting provisions, A held for trading share is purchased with the intention of short…

Q: Kingbird Corporation acquired a 38% interest in Blue Company on January 1, 2021, for $480,000. At…

A: Balance of equity investment = Cost of purchase + Share of net income - Share of dividend

Q: During the year 2021,David Company purchased 1,000 shares of Goliath Company ordinary shares at P150…

A: The shares designated to be valued at fair value through other comprehensive income are to be…

Q: On May 1, 2020, Clarke Inc. acquired 1,250 shares of Mayson Ltd. for $75,000. This investment…

A: Date Particulars Debit Credit 1-May-2020 Financial asset A/c  $75000     To Bank A/c   $75000…

Q: The net unrealized loss at December 31, 2020 in accumulated OCI in shareholders' equity is

A: Unrealized loss is the loss which has been recorded by the company due to reason of change in the…

Q: On July 1, 2019, Killearn Company acquired 120,000 of the outstanding shares of Shaun Company for…

A:

Q: During the year 2021, David Company purchased 1,000 shares of Goliath Company ordinary shares at…

A: The shares designated to be valued at fair value through other comprehensive income are to be…

Q: 1.)During the year 2021,David Company purchased 1,000 shares of Goliath Company ordinary shares at…

A: 1) Holding gain should David report in equity on Dec 31, 2021 :- 1,000 ordinary shares of Goliath…

Q: On January 1, 2019, B Company purchased 000 shares of another entity for P 3 600 000. On October 1,…

A: Under the average approach, the cost per unit of security is measured each time when the number of…

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: On January 1, 2021, Kendall Inc. purchased 25,000 shares of Kylie Company at a cost per share of…

A: If a company purchases more than 20% stocks of the other company and has significant influence over…

Q: On January 1, 2020. Mickey Mouse Corporation owns 15,000 ordinary shares representing 15% of the…

A: Answer: Jan 1 2020: 15000 shares with cost of P1,400,000 Dec 31,2020: 15000 shares with fair market…

Q: On June 30, 2021, Peter, Inc. purchased the following shares at a total cost of P10,700,000…

A: The realized gain on the sale of a share is calculated by subtracting the book value of the shares…

Q: On July 1, 2019, an investor company owns 20% of the common stock of an Investee and can exercise…

A: It was given that after sale of 10% the remaining 10% investment has readily determinable fair…

Q: During the year 2021,David Company purchased 1,000 shares of Goliath Company ordinary shares at P150…

A:

Q: On January 2, 2020, Black Company purchased 17% of Rock Company's common stock for $51,000. Rock's…

A: Investment means engaging the funds to generate income for the coming years. Investment can be made…

Q: Dahlia Company has 35,000 ordinary shares of Amelie Corporation as an investment in equity…

A: A realized gain refers to the difference between the sales value and original purchase value.

Q: On January 2, 2020, Theodora Company purchased 40,000 shares of Byzantine, Inc. stock at P100 per…

A: It is pertinent to note that transaction costs incurred for equity instruments designated at fair…

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: After all closing entries are made, Tremen's "Investment in Delany Company" account would have a…

A: Given information is: On July 1, 2019, Tremen Corporation acquired 40% of the shares of Delany…

Q: On January 1, 2019, B Company purchased (00 shares of another entity for P 3 600 000. On Dctober 1,…

A: Investment refers to the allocation of funds in the securities in order to receive the returns. The…

Q: On January 2, 2020, Theodora Company purchased 40,000 shares of Byzantine, Inc. stock at P100 per…

A: Solution:Total cost of investment = Purchase cost + Brokerage fee - dividend= 40000*100 + 120000 -…

Q: On January 1, 2020, KISSES acquired 90% of the equity share capital of HUGS in a share exchange in…

A: Introduction As per acquisition accounting if any entity acquires another entity then asset is…

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: On January 2, 2020, Theodora Company purchased 40,000 shares of Byzantine, Inc. stock at P100 per…

A: Cost of Shares purchased : = 40000 shares * P100 per share  = 4000000   Brokerage Fees : 120000…

Q: On January 1, 2019, Long Corporation acquired 30% of the outstanding common shares of Feeley…

A: Part 1:

Q: On January 1, 2021, American Corporation purchased 30% of the outstanding voting shares of Short…

A: As per equity method of valuation, The total equity available is Fair value + Income - dividend…

Q: On January 1, 2020, Santos Ltd. purchased 30% of Yardley Co.’s 50,000 outstanding common shares at a…

A: Purchased 30% 50,000 outstanding common shares of Yardley Co.’s at $20 per share Yardley paid cash…

Q: On January 1, 2018, BLEED Inc. acquired 10% interest in an investee for P3,000,000, The investment…

A: Investments held for trading purpose- Investments that are held for trading are measured at fair…

Q: On January 1, 2019, Mickey Mouse Co. acquired 20,000 ordinary shares out of the 100,000 outstanding…

A: When-ever the purchase price is higher than the fair value of asset which has been purchased then…

Q: How much unrealized holding gain should Lover report in profit or loss for the year 2022?

A: The calculation of unrealised holding gain that should be reported in profit or loss for the year…

Q: On January 1, 2019, an entity purchased 15,000 shares of another entity representing a 12% interest…

A: Profit and loss Account In the profit and loss account which includes all type of revenues and…