On January 1, 20X7, Poke Corporation acquired 25 percent of the outstanding shares of Shove Corporation for $100,000 cash. Shove Company reported net income of $75,000 and paid dividends of $30,000 for both 20X7 and 20X8. The fair value of shares held by Poke was $110,000 and $105,000 on December 31, 20X7 and 20X8 respectively. Based on the preceding information, what amount will be reported by Poke as balance in investment in Shove on December 31, 20X8, if it used the equity method of accounting?

Q: PROBLEM 1 On January 1, 20x0, P Company purchased 80 percent of the outstanding shares of S Company…

A: The question is multiple choice question. Required  Choose the Correct Option.

Q: On May 20, Montero Company paid $180,000 to acquire 55 shares (9%) of ORD Corporation as a long-term…

A: The companies invest in long-term investments to make additional income on the surplus funds at…

Q: Problem 2: On Jan 1, 20X8, Banawe Company purchased 80% of the outstanding shares of Malate Company…

A: The consolidated financial statement determined separately the profit attributable to the parent…

Q: air value of shares held by Poke was $110,000 and $105,000 on December 31, 20X7 and 20X8…

A: The equity method of accounting is a form of accounting that is used to account for intercorporate…

Q: en the net assets acquired amounted to P7,000,000 At acquisition date, the carrying amounts of the…

A: Journal entry: Journal entry is the book of original entry where first transactions are recorded in…

Q: QUESTION 10 P purchases 100 percent of S Company on January 1, 20X2, when P's retained earnings…

A: Retained earnings are that part of divisible profits which are leftover after making payment of…

Q: Pain Corporation holds 90 percent of Soothing Company's common shares but none of its preferred…

A: SOLUTION-   WORKING- NET INCOME  80000 LESS- PREFERRED DIVIDEND PAID (50000*8%) 4000 INCOME…

Q: 4. At the beginning of current years, Erza Company was organized with authorized capital of 100,000…

A: Share premium is the amount that arises on issuing shares at a price above the par value. The par…

Q: Problem 3 On January 1, 20x9, Maykaya Corporation acquired 80 percent of Galisod Company's  common…

A: In this question, we need to determine those answers as required. The questions are dealt with the…

Q: 31. On January 1, 20x1, OBDURATE Co. acquired 30% ownership interest in STUBBORN, Inc. for P400,000.…

A: Goodwill is an intangible asset linked to the acquisition of a business by another. Goodwill is…

Q: Porky Co. owns 40% of Watwat, Inc.'s ordinary shares. On July 1, 20x2, Porky Co. sells half of its…

A: As per ASC 860 ,when there is sale accounting of shares or financial assests then a gain or loss…

Q: PROBLEM 1 On January 1, 20x0, P Company purchased 80 percent of the outstanding shares of S Company…

A: PROBLEM 1 On 01.01.20x0, P company purchased outstanding shares of S company = 80% Purchase…

Q: In 20A, Angelu company bought 10,000 shares of Eloisa company at a cost of P360,000. On December 1,…

A: The company may provide dividends in cash or dividend in kind like stock dividends property…

Q: Question 38 Plywood Corporation's consolidated cash flow statement for the year ended December 31,…

A: Dividend means the amount given to shareholder of the company as profit distribution by company.…

Q: Gant Company purchased 20 percent of the outstanding shares of Temp Company for $70,000 on January…

A: The accounting approach of treating investments in affiliated corporations is known as the equity…

Q: Small Company reported 20X7 net income of $40,000 and paid dividends of $15,000 during the year.…

A: In case of fair value method we should consider unrealized gain due to increase in fair value of…

Q: Question 32       On January 1, 2013, Pansy Company acquired a 10% interest in Sunflower…

A: Answer 32) Since the company uses the cost method of accounting for its investment, hence the…

Q: Sexy Corporation issued 15, 000 shares of its P 100 par ordinary shares in acquiring a land that has…

A: Solution: When shares are issued in exchange of any asset, the transaction is recorded at the fair…

Q: exy Corporation issued 15, 000 shares of its P 100 par ordinary shares in acquiring a land that has…

A: Solution: Par value of ordinary stock issued = Number of Shares * par value per share = 15000*100 =…

Q: Film out Co. holds 1,000 ordinary shares of Crystal Snow Co. as investment. On Sept 30,20x1, Crystal…

A: right issue date 30 sept ,2001 i.e. initial recognition date 31 dec ,2001 i.e. subsequent…

Q: On January 1, 20X9, Pirate Corporation acquired 80 percent of Sea-Gull Company's common stock for…

A: Correct option is b) 15,000

Q: How much is the unrealized gain at Dec 31, 20X1?     1,000 15,000 50,000 65,000

A: The securities held for trading means those securities that are purchased by the company for a short…

Q: 01-Sep-19 Aylmer Corp purchased 3,100 shares of Belmont Inc at $13.00 per share. 31-Oct-19 Belmont…

A: Fair value through other comprehensive income, financial assets are classified and measured at fair…

Q: Entries for equity investments: 20%–50% ownership On January 4, 20Y4, Ferguson Company purchased…

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

Q: On January 3, 20X9, Pleat Company acquired 80 percent of Stitch Corporation's common stock for…

A: Non-controlling interest - It is an ownership position where shareholder owns less than 50% of…

Q: Gaw Company purchased 15% of the common stock of Trace Corporation for $150,000 on 1/1/X1. At the…

A: Dividend paid  = 60,000 X percentage ownership = 15%

Q: On 1 January 20XO Alpha Co purchased 90,000 ordinary $1 shares in Beta Co for $270,000. At that date…

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

Q: Problem 3 On January 1, 2021, CPA Co. acquired 15,000 ordinary shares out of 100,000 outstanding…

A: The net income of the company means the income of the company that comes after deducting all the…

Q: Flicker, Inc. acquired 30% of  West Company's voting shares for P 200,000 on January 2, 20x2.…

A: Whenever a company holds 20% to 50% of voting rights of another company, then equity method is…

Q: Dallas Corporation purchased 300 shares of its own $10 par value common stock for $7,500. Later,…

A: Introduction Treasury stock: Treasury stock is the company’s its own stock which company purchases…

Q: Goodfellas obtained a 60% Bedfellow in the 100,000 $1 shares of Mist on 1 January 20X8, when the…

A: given   Goodfellas obtained a 60% Bedfellow in the 100,000 $1 shares of Mist on 1 January 20X8, when…

Q: PROBLEM 1 On January 1, 20x0, P Company purchased 80 percent of the outstanding shares of S Compar…

A: Solution:  On 01.01.20x0, P company purchased outstanding shares of S company = 80% Purchase…

Q: Problem 3 On January 1, 20x9, Maykaya Corporation acquired 80 percent of Galisod Company's  common…

A: Consolidated financial statements: If an entity (investor company) acquires more than 50% stake in…

Q: On January 4, 20Y4, Ferguson Company purchased 480,000 shares of Silva Company’s common stock…

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

Q: Rowan Co. purchases 100 common shares (40%) of JBI Corp. as a long-term investment for $500,000 cash…

A: Investment: The act of allocating money to buy a monetary asset, in order to generate wealth in the…

Q: Parent Co. purchases 100 percent of Son Company on January 1, 20X1, when Parent's retained earnings…

A: Parent's post-closing retained earnings balance on December 31, 20X1 = Beginning retained earnings…

Q: Plexis Corporation holds 70 percent of Solar Company's voting common shares, acquired at book value,…

A: SOLUTION-   EXPLANATION- S.NO PARTICULARS PLEXIS CORPORATION SOLAR CORPORATION TOTAL 1 NET…

Q: Bonus Question On 1/1/20x1, Palma Company acquires 25% investment in the voting common stock of…

A: Under equity method, the amount of investment by the investor entity shall reduce such an amount if…

Q: On January 1, 20X9, Pirate Corporation acquired 80 percent of Sea-Gull Company's common stock for…

A: Total stockholders’ Equity in the consolidated Balance sheet: $200,000 + $205,000 + $40,000…

Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.