On January 2, 2020, Kesha Corporation bought 10 percent of Bart Corporation's share capital for P500,000 and classified it as FVOCI investment. Bart's net income for the years ended December 31, 2020, and 2021, were P100,000 and P800,000, respectively. On January 2021, Bart declared a dividend of P50,000. No dividends were declared in 2020. On December 31, 2021, the fair value of the Bart stock owned by Kesha had increased to P800,000. How much should Kesha Corporation show on its 2021 income statement as total income from this investment?

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A: Shares refer to the unit of ownership in an organization. Shares are issued to raise funds against…

Q: On December 31, 2020, GHI Corporation holds 50,000 shares of Harry Company with market value of…

A: Unrealized gain means the upsurge in the worth of an asset or security which is yet to sold for…

Q: balance in Tuao’s investment in Abulug Company

A: Balance of investment in other entity = Cost of investment + (Profit of the other entity *…

Q: The entry to record the declaration of the dividend would include a debit to Retained Earnings of

A: Given that: Purchase price of 20,000 shares = P300,000 Market price of shares = P500,000

Q: On January 2, 2020, Tuao Company purchased 10% of Abulug Company's outstanding ordinary shares for…

A: The investment in shares of another company gets increased by net profit and gets decreased by…

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

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A: Solution 1                Combined journal entries showing adjustment and elimination for the entry…

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

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A: Reported Income : Consequently, the investor's part of the joint venture's revenues and losses is…

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A: SOLUTION- JOURNAL ENTRIES IS A RECORD OF BUSINESS TRANSACTIONS IN THE ACCOUNTING BOOKS OF A…

Q: During 2021, Perez Co. purchased 3,000 shares of Corpuz Corp. ordinary shares for P40,300 as a…

A: Securities of an company when purchased for investment purposes ae known as investment securities.…

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A: When an asset or any security is sold, they are sold with the expectation to earn gain which can be…

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A: As the investment was hold with the intention of sell hence the investment will be classified as…

Q: BuyCo, Inc., holds 28 percent of the outstanding shares of Marqueen Company and appropriately…

A: a)

Q: n January 1, 2020, Marin Co. purchased 25,000 shares (a 10% interest) in Elton John Corp. for…

A: An investment is a type of asset that is produced with the goal of allowing money to grow. One, you…

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: On January 1,2020, ABC Company acquired 80 percent of DEF Company's Common Stock for P400,000 cash.…

A: As per Bartleby policy, only the first three interlinked parts are answered. If you want any…

Q: On January 2, 2020, Tuao Company purchased 10% of Abulug Company’s outstanding ordinary shares for…

A: Formula: Ending capital = Beginning capital + Net income - Dividends paid

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A:

Q: BuyCo, Inc., holds 28 percent of the outstanding shares of Marqueen Company and appropriately…

A: The equity method is the one that is applied when a company has 20% to 50% of stock ownership…

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

Q: On January 2, 2020, Megan, INC. acquired a 15% interest in Kiyosaki Corp. by paying P8, 000, 000 for…

A: Answer are as follows:

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A: Investment Income The fair value at the conclusion of the period, which is also established by net…

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A: Total income includes any increase in value of investment and share of dividend received.

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A: Equity Method: It is a method applied when one company has 20% to 50% ownership in another company.…

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A: Consolidated net income is associated with parent companies and their subsidiaries. A parent company…

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A: Equity investment is the form of investment in the shares of the company to get returns in the form…

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A: Gain on Disposal of Investment:- When an entity earns the value of investment more than its carrying…

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A: Non-controlling interest is the minority interest where shareholders hold less than 50% of the…

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A: As Culver co. holding 30% of equity in john co. and can exercise significance influence ,equity…

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A: Solution Working- 1- Amortization excess = 50000/4 =12500. 2-Inter company dividend =…

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

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A:

Q: On September 1, 2019, Eli Company purchased 35% of the outstanding ordinary shares of Long…

A:

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A: Share of Investment It is the practice of the corporate business to buy the shares of the another…

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A: Aa per IFRS If shares were issued in exchange  of asset or vice versa then it should be  measured…

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A: The investment income is recorded in the income statement for dividend revenue or income due to…

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

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A: In the case of group enterprises, the consolidated balance sheet is a crucial financial statement.…

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

Q: What amount will be recorded as goodwill on January 1, 2020?

A: Goodwill is the amount which is occurred and takes place when the person pays more than the amount…

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

A: Part 1:

Q: ILA Company agreed to pay $850,000 cash and issue 50,000 shares of its $10 par (20 current fair…

A: Step 1 In business combination, when the number of shares is issued, they are generally issued   at…

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A: SOLUTION NET INCOME REFERS TO THE AMOUNT AN INDIVIDUAL OR BUSINESS MAKES AFTER DEDUCTING COSTS ,…

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A: Goodwill is the reputation of company which is gained by the entity during the course of its…

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

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