On January 1, 2020, Hannah Company purchased 20% of Montana Company fro P3,000,000. This investment did not give Hannah the ability to exercise significant influence over Montana Company. During 2020, Montana Company reported net income of P3,500,000 and paid cash dividends of P4,000,000. What is the carrying amount of the investment in Montana Company on December 31, 2020?

Q: During the year 2018 Nestle sold 3,000 shares of LJ, Inc. for P119,700 and 500 shares of Dwarfy…

A: Carrying amount of 3000 shares of LJ Inc = P 180,000 Sale Consideration of 3000 shares of LJ Inc = P…

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 June 30, 2020, Cape Company purchased 25% of the outstanding ordinary shares of Bit Co. at a…

A: Under the fair value method, the investment is reported at the fair value of the market share of the…

Q: Turner Company purchased 40% of the outstanding stock of ICA Company for $10,000,000 on January 2,…

A:

Q: On June 15, 2020, Brainiac Company purchased 8 shares of Lovely Company for $6 per share.  The…

A: Introduction: If investments in equity shares are less than 20%, then such investment is carried at…

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: 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: Wang Acquires 100% of Chen on January 1,2010 and will operate Chen as a separate subsidairy. In the…

A: Comment- Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the…

Q: Jackson Inc. purchased 30,000 shares of common stock of the Pixel Corporation $10 per share on…

A: calculation of revenue from investment and investment shown in balance sheet are as follows

Q: On January 1, 2022, Sun Company acquired 85% of outstanding shares of Moon Corp. The consideration…

A: Consolidation - Legally speaking, consolidation refers to the merging of two or more enterprises,…

Q: On January 1, 2020, Elite Company paid P 18,000,000 for 50,000 ordinary shares of Craze Company…

A: The total amount of investment at the end is the net value of an investment which is calculated by…

Q: Twilight Co. paid $2,800,000 to acquire all of the common stock of Aurna Corp. on January 1, 2022.…

A: In the preparation of consolidated financial statements, all inter-company (within the group)…

Q: On January 1, 2022, Lucas Company acquired 85% of outstanding shares of Luna Corp. The consideration…

A: Solution Working note -   1- NCI beginning  750000 NCI income  534750 NCI share dividend…

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

A:

Q: Norris sold goods costing P500,000 for P750,000 to Thaddeus in 2020. At December 31, 2020, the goods…

A: The excess of the selling price of an asset over its carrying value is referred to as capital gain.

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 January 1, 2020, Alice Company purchased 40,000 shares of Jasper at P100 per share. The…

A: Initial measurement of the investment = Purchase cost of Investment + Brokerage fees

Q: Apples Corporation bought 2,000 shares of Oranges Corporation on January 2, 2020 at ₱150 per share…

A: Value of Shares=Number of Shares×Per share=2,000×₱150=₱300,000

Q: What is the Consolidated net income or group profit for the year ended December 31, 2020? 2). What…

A: Consolidated net income is the combined net income earned by the parent entity from the business…

Q: Of the amount paid for the investment, how much is attributable to goodwill? How much is the…

A: Acquisition costs are the sum of the costs incurred by the business in acquiring a new client or…

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A: A company may invest in another company. The company reports the investment in another company as an…

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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

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A: The company makes several investments to earn more income. When a company purchases the shares of…

Q: Suppose that AXE company acquires exactly 25% of the voting common stock of Company SARDAR Inc. for…

A: In case of an entity having significant influence i.e. less than 50% stake in other entity. The…

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Q: On January 1, 2021, ABC purchased 80% of the outstanding shares of DEF at a cost of P960,000. On…

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Q: On January 1, 2020, Fisher Corporation purchased 40 percent (90,000 shares) of the common stock of…

A: A journal entry is a form of accounting entry that is used to report a business transaction in a…

Q: On July 1, 2020, Matcha, Inc. acquired as a long-term investment for P1,600,000, a 40% interest in…

A: An associate entity is an entity in which the investor company has a significant influence on the…

Q: How should Allan allocate Sysinger’s total acquisition-date fair value (January 1, 2021) to the…

A:

Q: On January 1, 2020, Pharoah Corporation purchased 20% of the outstanding voting shares in WLT…

A: If the investment has significant influence then all earning are debited to investment account and…

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 May 1, 2020, Cheng Company, a public company, acquired 176,000 of the 550,000 outstanding common…

A: Percentage of  stake acquired  = 176000/550,000 = 0.32 (OR) 32% Here the investor has significant…

Q: Akron, Inc., owns all outstanding stock of Toledo Corporation. Amortization expense of $15,000 per…

A: An income statement is a financial statement that shows a company's income and expenses. It also…

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: At the beginning of 2021, Nobela Corporation bought 15% ownership stake in Joseph Corporation for…

A: In the investment of associate, we valued the investment value at the end of each year by the equity…

Q: On April 1, 2019, BBB Company purchased 40% of the outstanding ordinary shares of Clarke Company for…

A: Note: It is assume that company preparing their financial account according calendar year.

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

Q: Philip Company purchased 250,000 ordinary shares of Smiley Company for P40 per share on April 2,…

A: Given, Total Dividend paid=P600,000Total ordinary shares outstanding=1,000,000 ordinary shares

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A: Under equity method  for the investment, the investor records the investees dividend and net income…

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

A: Introduction:- On January 1, 2019, Lallo Company purchased 15% of Vintar Company's ordinary shares…

Q: On January 4, 2018, Watts Co. purchased 40,000 shares (40%) of the common stock of Adams Corp.,…

A: The calculation of investment value per share has been made as follows:

Q: On January 1, 2020, Orange Co. purchased a 35% interest in Lemon Co. for $800,000. Orange reports…

A: A company can purchase the equity shares of another company for the purpose of investment. If the…

Q: Suppose that AXE company acquires exactly 25% of the voting common stock of Company SARDAR Inc. for…

A: Cost method of investment valuation is to value the investment on the basis of the cost which has…

Q: On January 1, 2020 Rosen Company purchased 35,000 which is 15% of the total common stock owned by…

A: Answer:-  Common stock meaning:- A common stock is a form of stock generally issued to the majority…

Q: On August 1, 2020, Oriole Corporation purchased 20% of the outstanding voting shares in WLT…

A: Journal Entry:   Journal entry has two effects for every transaction. The journal entry is passed by…

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.