On January 1, 2019, X Company purchased a 30% interest in Y Company for $250,000. Y reported net income of $100,000 for 2019 and declared and paid a dividend of $10,000. X using the Cost method. In its December 31, 2019, balance sheet what amount should X report as its investment in Y? Select one: a. 277,000 b. 340,000 c. 250,000 d. 223,000

Q: On January 1, 2027, Kasson Company acquired 40% of IJK Company's common stock for $183,000. Kasson…

A: IJK, is a public company which has its share available for retail investing. Therefore Kasson…

Q: On December 31, 2020, DEF, Inc. holds 100,000 shares of Devin Company with market value of…

A: Gain or loss is the amount of money gained or lost on investment. If the money invested give more…

Q: On January 2, 2020, Hanz Corporation bought 30% of the outstanding ordinary shares of Eve…

A: The following computations are done for Hanz Corporation.

Q: Miller Corporation acquired 30% of ilie outstanding common stock of Crowell Corporation for $160,000…

A: Journal is the book of original entry in which all the transactions of the business are recorded…

Q: Zwick Company bought 12,000 ordinary shares of Handy Corporation in January 2019. In December, Hart…

A: Dividend is the sum of money which is regularly paid by the company after a specific period of time…

Q: 80% investment in Sarah Company. The acquisition cost was equal to Piolo equity in Sarah net assets…

A: The question is related to Consolidation. The details are as under  Share of Piolo Company in Sarah…

Q: On July 1, 2021, JKJ Corporation purchased 100 common shares of JMK Ltd. at $20 per share. JKJ…

A: Solution: As shares are expected to be sold with in a year, therefore investment should be…

Q: On January 1, 2021, PUP CAF acquired a 10% interest in an investee for P3,000,000. The investment…

A: Working note : 1 Computation of Net Investment Income    $ Share in net income (8000,000 x…

Q: Ziek Corp. acquired a 30% interest in ZKI Corporation on December 31, 2020 for $2,159,000. During…

A: Investment refers to the assets which are acquired or invested in building the wealth and also save…

Q: Below are Lebnas Corp.’s 2019 income statement and comparative balance sheet at 12/31/2019 and…

A: Calculate dividend declared during the period as follows: The Dividend of $87,000 is paid during…

Q: On January 1, 2019, in its first year of operation, Olson Company acquired some of the outstanding…

A: As the Oslon company acquired 25% Bryant company, which means Oslon can exercise  significant…

Q: In 2019, Avalanche Corporation has $70,000 of net income from operations during the current year. In…

A: The dividends received deduction (DRD) is a federal tax deduction in the U.S. that is given to…

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

A: Lallo will report the dividend as it's income from the investment.

Q: areholders' equity was P5,000,000. The carrying amount of Al's identifiable net assets approximated…

A: Carrying amount of investment = carrying amount + profit - dividend  = P2000000 + P800000 - P100000…

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: On July 1, 2019, GAR Company acquired 800,000 shares of FAR Company at a price of P13 per share. GAR…

A: Total number of shares outstanding of FAR Company = P5,000,000P5 per share = 1,000,000 shares % of…

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: Miller Corporation acquired 30% of the outstanding common stock of Crowell Corporation for $160,000…

A: Dividend (31st march)=Amount paid×30%=$50,000×30%=$15,000

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

A: Lallo will report the net income from investment using the cost method.

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

A: Formula: Income from the investment = Total dividends paid x Percentage of holding shares

Q: Fill in the blanks: On January 1, 2020 Iskrambol Company purchased 20% of Ice Buko Company's…

A: The question is related to Investment in Associates. Required 1. Investment Income 2020 2. The…

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: On January 2, 2021, Sanborn Tobacco Inc. bought 5% of Jackson Industry’s capital stock for $90…

A: 1.

Q: P Corporation purchased 60% of the shares of S Corporation on January 01, 2019 for P2,200,000. On…

A: Introduction Consolidated retained earnings are same as retained earning it is shown under a…

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

A: Income from investment means dividend received by Lallo company paid by Vintar company.

Q: P Corporation purchased 60% of the shares of S Corporation on January 01, 2019 for P2,200,000. On…

A: Working

Q: On January 3, 2021 A Company purchases a 15 percent interest in B Corporation's common stock for…

A: Share in net income of 2021 = Net income x 15% = P20000 x 15% = P3000

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 3, 2019, Martin Company purchased for $500,000 cash a 10% interest in Renner Corp. The…

A: The journal entry here is passed up to December 31, 2019 related to R Corporation and for change…

Q: equity method to account for this investment

A: Since Jupiter Inc. acquired 25% in Saturn Co., the debit balance in the investment will include 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 2, 2018, Sanborn Tobacco Inc. bought 5% of Jackson Industry’s capital stock for $90…

A:

Q: Z Corporation has the following transactions relating to its investment during 2020: Jan 5 Acquired…

A: SOLUTION- INCOME STATEMENT- IT CAN BE DEFINED AS THE FINANCIAL STATEMENT THAT IS USED FOR THE…

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

A: Introduction:- Calculation of total cost of investment as follows:- Total cost of investment =…

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: Station Land Manufacturing acquired a 30% interest in the outstanding stock of Performer Fiberglass…

A: Step 1 Investment in control when one entity acquires more  the 50% voting right or controlling…

Q: On April 2, 2020, enson Ltd. acquired 2,500 shares of Lam Corp. for $5o,000: ihts investment…

A: FA through FVTPL A/c Dr   $ 50000        To Bank A/c                          $ 50000 {Being FA…

Q: The Harvard Company acquired a 30% equity Interest in Baywatch Company for P4,000,000 on January 1,…

A: Carrying amount refers to the asset cost subtract the accumulated depreciation and it is usually…

Q: January 1, 2021, ABC acquired a 10% interest in an investee for P3,000,000. The investment was…

A: This is the method of an accounting which is used by a company to record the profits earned through…

Q: On July 1, 2020 Blush Company purchased 20% of the when the fair value of net assets was…

A: Investment: It is an asset or item which is purchased and held to generate income or for…

Q: The following are summarized Balance Sheets as on March 31, 2020 H. Ltd. acquired 80% shares in S…

A: Calculation of Goodwill Fair Value of Consideration Transferred $2,000 Non Controlling interest…

Q: Strawberry company purchased 70% of the outstanding voting share of Apple company at the beginning…

A: The answer for the multiple choice question and relevant working are presented hereunder :

Q: PR Corp has not yet accounted for the issue of its own shares or for the acquisition of the…

A: Acquisition: Acquisition can be defined as form of business combination where a business acquires…

Q: On January 1, 2019, Aboitiz Corporation acquired 30% of the voting share capital of another entity…

A: As per IAS 28, if any investment is made in associates and joint ventures, the equity method should…

Q: Jane Company purchased 80% of the outstanding voting shares of Snow Company at the beginning of 2019…

A: Answer -  Correct Option is -  C -  Investment in Snow Company Dr                       850,000…

Q: Required: 1. Determine the balance of the investment account as it was kept by Jen Company. 2.…

A: Jen Company has made some transactions pertaining to long term investment in shares of Jisoo…

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…

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.