On January 2, 2016, Well Co. purchased 10% of Rea Inc.’s outstanding common shares for $400,000. Well is the largest single shareholder in Rea, and Well’s officers are a majority on Rea’s board of directors. Rea reported net income of $500,000 for 2016, and paid dividends of $150,000. In its December 31, 2016, balance sheet, what amount should Well report as investment in Rea? a. $435,000 b. $450,000 c. $400,000 d. $385,000

Q: Matthew owns 30 percent of the outstanding stock of Lindman and has the ability to significantly…

A: Stock Owned By Mathew in Lindman 30% Balance in Investment in Lindman as on 01-01-2015 3,98,000…

Q: Under each of the following situations, what is the Investment in Rambis account balance on…

A: Given that: Stock acquired of Rambis Company for $574000

Q: Haynes, Inc., obtained 100 percent of Turner Company’s common stock on January 1, 2017, by issuing…

A: We are authorized to do first three sub parts only , please re-post the further sub parts 1)…

Q: n January 1, 2014, The Miller Corporation purchased 300,000 shares of The Mayfair Corporation for…

A: Formula: Total dividends = Dividend per share x Total number of shares outstanding.

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, 2017, for $574,000…

A: Consolidation refers to adding up financial figures of two or more separate entities in systematic…

Q: During the most recent year, Quinn Co. bought 2,800 shares of Germana-Hall Corporationcommon stock…

A: Since Quinn co does not own more than 10% of outstanding stock of any company, the investments are…

Q: On July 1, 2015, Cleopatra Corporation acquired 25% of the shares of Marcus, Inc. for P1,000,000.…

A: The investment in shares gets increased by profits and decreased by dividend received.

Q: Herbert, Inc., acquired all of Rambis Company’s outstanding stock on January 1, 2017, for $574,000…

A: The following computations are done for Herbert Company.

Q: On January 1, 2015, FOREVERALONE Corporation reported total assets of P 470,000, liabilities of P…

A: The amount of total assets in FOREVERALONE will remain same @ 470,000. Because the investment in…

Q: Arther Corporation acquired all of the outstanding $10 par voting common stock of Trent Inc., on…

A:

Q: Haynes, Inc., obtained 100 percent of Turner Company’s common stock on January 1, 2017, by issuing…

A: 1.

Q: On July 1, 2015, Cleopatra Corporation acquired 25% of the shares of Marcus, Inc. for P1,000,000.…

A: Amount of profit in 2018 P1,60,000   Share of Profit (P160000 * 25%) P40,000         Account…

Q: Haynes, Inc., obtained 100 percent of Turner Company’s common stock on January 1, 2017, by issuing…

A:

Q: On July 1, 2016 TICKLE Company purchased 80% of the outstanding shares of DOODLE Company at a cost…

A: The consolidated net income is calculated below,

Q: Presented below are two independent Ivanhoe Inc. acquired 10% of the 403,000 shares of common stock…

A: Date Particulars Debit Credit June 17, 2022 Available for sale securities (403000*10) $4,030,000…

Q: MD Corp. completed the following transactions relating to investment in AO Company ordinary shares,…

A: Where shares are held as investments for short-term (current assets), the shares are recorded at…

Q: On July 1, 2015, Cleopatra Corporation acquired 25% of the shares of Marcus, Inc. for P1,000,000. At…

A: When one company is holding shares in another company which is less than  50% , then it is called as…

Q: On July 1, 2021, Bird Inc, a private enterprise, acquired 1,250 shares of Duckltd. tot 375, 000.…

A: Introduction: Financial transactions are tracked using journal entries. You enter transaction…

Q: Century Corporation acquired 8,400 common shares of Fidelity Company on January 10, 2012, for $12…

A: The entry in the journal books which follow double entry method to record the transactions is called…

Q: On July 1, 2015, Cleopatra Corporation acquired 25% of the shares of Marcus, Inc. for P1,000,000. At…

A: When one company is holding shares in another company from 20% to 50% , then it is called as…

Q: On January 1, 2018, Chandler purchased 80% of the outstanding shares of Joey at a cost of $96,000.…

A: Non-controlling is the interest of other that parent entity in the subsidiary entity. NCI balance is…

Q: July 1, 2015, Cleopatra Corporation acquired 25% of the shares of Marcus, Inc. for P1,000,000. At…

A: The investment in Associate company gets increased with profits and decreased with dividend…

Q: On January 1, 2015, Port Company acquires 8,000 shares of Solvo Company by issuing 10,000 of its…

A:

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

A: Gross profit rate=Sales price-CostSales price×100

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

A: 1. What amount of equity method income would Matthew recognize in 2018 from its ownership interest…

Q: What amount should Fisher report as its Investment in Steel on its December 31, 2015, balance sheet?…

A: Investments:   Companies invest in stocks and bonds of other companies or governmental entity to…

Q: Herbert, Inc., acquired all of Rambis Company’s outstanding stock on January 1, 2017, for $574,000…

A: a.

Q: On January 1, 2016, Halstead, Inc., purchased 75,000 shares of Sedgwick Company common stock for…

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: Haynes, Inc., obtained 100 percent of Turner Company’s common stock on January 1, 2017, by issuing…

A: D) If initial value methods applies Computation of overstated / understated retained earning…

Q: On July 1, 2016, Killearn Company acquired 88,000 of the outstanding shares of Shaun Company for $13…

A: Given:  As of July 1, 2016, the investee had assets with a book value of $3 million and liabilities…

Q: BuyCo, Inc. holds 25 percent of the outstanding shares of Marqueen Company and appropriately applies…

A: Investment: It refers to the process of using the currently held excess cash to earn profitable…

Q: On 1 January 2017, Al Yousef Group acquired 30% of the outstanding voting shares of Saleh…

A: Accounting Rules (1) Debit what comes in, Credit what goes out.(2) Debit all expenses and losses,…

Q: On January 1, 2011, Goodwill Corporation purchased 25% of the outstanding voting shares of Short…

A: We first need to understand the meaning of equity method for recording investment. This method is…

Q: On January 1, 2017, Ridge Road Company acquired 20 percent of the voting shares of Sauk Trail, Inc.,…

A: We have the following information:

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: Herbert, Inc., acquired all of Rambis Company’s outstanding stock on January 1, 2017, for $574,000…

A: a. Assume that Herbert’s internal net income figures above do not include any income from the…

Q: On 1 January 2017, Al Yousef Group acquired 30% of the outstanding voting shares of Saleh…

A: Solution: Share in Saleh's dividend in 2017 = Total dividend paid * % holding of AI = OMR 40,000 *…

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

A: Equity Method of Valuation of Investment: Under the equity method, the income earned on the…

Q: On 1 January 2017, Al Yousef Group acquired 30% of the outstanding voting shares of Saleh…

A: Yousef Group acquired 30% of the outstanding voting shares of Saleh Enterprises & investment…

Q: July 1, 2015, Issue Company purchased 80% of the outstanding shares of Intrigue Company at a cost of…

A: The consolidated net income is calculated below, Issue purchased 80% Intrigue Company   At Cost…

Q: On July 1, 2017, Entity H acquired 25% of the shares of Oki, Inc. for P1,000,000. At the date, the…

A: Entity H acquired 25% share, therefore its share in profit  = 25% x 160000 = 40000

Q: Haynes, Inc., obtained 100 percent of Turner Company’s common stock on January 1, 2017, by issuing…

A: a.

Q: On July 1, 2015, Cleopatra Corporation acquired 25% of the shares of Marcus, Inc. for P1,000,000.…

A: The investment in shares of another company (assets) gets increased with profits and and decrease…

Q: On July 1, 2014, Issue Company purchased 80% of the outstanding shares of Intrigue Company at a cost…

A: The unrealized gain on upstream and downstream sales should be eliminated to present a correct…

Q: At December 31, 2010, Weston Manufacturing Co. owned the following investments in capital stock of…

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

Q: Haynes, Inc., obtained 100 percent of Turner Company’s common stock on January 1, 2017, by issuing…

A:

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.