On January 2, 2020, Samantha Company bought 10% of Camille Company's outstanding ordinary shares for $400,000. Samantha Company is the largest single shareholder in Camille Company, and Samantha Company's officers are a majority on Camille Company's board of directors. Camille Company reported net income of $500,000 for 2020, and paid dividends of P150,000. In its December 31, 2020 balance sheet, what amount should Samantha Co. report as investment in Camille Co.?

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

A: GIVEN   On January 2, 2020, Tuao Company purchased 10% of Abulug Company's outstanding ordinary…

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

A: (A)  amount of equity method income would Matthew recognize in 2021 from its ownership interest in…

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…

Q: On October 1, 2019, Michael Company purchased 30,000 shares of Jackson Company at P180 per share…

A: The investment is valued under the fair value method if the investment is in less than or equal to…

Q: On January 1, 2021, ABC purchased 90% of the outstanding shares of JKL Company at a cost of…

A: The consolidated income is determined by combining the incomes of both parent and subsidiary’s…

Q: On January 1, 2020, Stellar Co. purchased 23,000 shares (a 10% interest) in Elton John Corp. for…

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

Q: BuyCo, Inc., holds 24 percent of the outstanding shares of Marqueen Company and appropriately…

A: Equity investee means any Person in which the company or any subsidiary holds an ownership interest…

Q: On August 31, 2020, SG Corporation (SME) purchased all the net assets of Popsters Corporation by…

A: The capitalized cost of the investment is P2,949,000.

Q: On 1 October 2018, KING acquired 30,000 of VAM's 100,000 shares in exchange for 75,000 of its own…

A: Associate Company is the corporation in which another company has made substantial proportion of…

Q: What Is the investment carrying value at December 31. 2020? a. P6,162,000 b. P5,970,000 c.…

A: On October 1, 2019, Michael Company purchased 30,000 shares of Jackson Company at P180 per share. At…

Q: On January 1, 2020, Sarasota Corporation purchased 20% of the common shares of Ivanhoe Company for…

A: Journal entry Journal entry refers to an entry that is made to record the financial transactions in…

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

A: a)

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

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: Kingbird Corporation acquired a 38% interest in Blue Company on January 1, 2021, for $480,000. At…

A: Balance of equity investment = Cost of purchase + Share of net income - Share of dividend

Q: On January 1, 2021, ABC purchased 90% of the outstanding shares of JKL Company at a cost of…

A: On January 1, 2021, ABC purchased 90% of the outstanding shares of JKL Company at a cost of…

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…

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: In January 2021, Tawatinaw Group paid $650,000 for 60,000 shares of Neerlandia Inc. giving Tawatinaw…

A: given   In January 2021, Tawatinaw Group paid $650,000 for 60,000 shares of Neerlandia Inc., giving…

Q: Corporation by transferring cash of P500,000 and issuing 40,000 ordinary shares with par value of…

A: A cost involved in the acquisition of ownership in the entity for long-term benifits to the entity.…

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: Milk Tea Company bought 1,000 shares of Macha Corporation as equity investments on January 10, 2022…

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

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

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

Q: On August 31, 2020, SG Corporation (SME) purchased all the net assets of Popsters Corporation by…

A: Purchase consideration = Cash paid + fair value of shares + consulting fees + listing fee

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

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

Q: On January 1, 2021, merma Corp. purchased 80% of the outstanding shares of sand Co. at a cost of…

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

Q: Sarnia Inc. acquired 15% of the 100,000 outstanding common shares of London Ltd. on January 1, 2018,…

A: Given: Pat Inc.(P) acquired 15% of the 100,000 outstanding common shares of Mark Inc Cash…

Q: On April 1, 2019, Tagaytay Company purchased 25,000 ordinary shares of Sulo Co. at P180 per share, a…

A: Here in this problems which describe the gain which are arised at the time of sale of ordinary…

Q: On January 1, 2021, Patter Corp. purchased 80% of the outstanding shares of Saturn Co. at a cost of…

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

Q: On January 2, 2020, Black Company purchased 17% of Rock Company's common stock for $51,000. Rock's…

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

Q: On January 1, 2020, HULK CORP. acquired 70% of outstanding ordinary shares of HALL INC. at a price…

A: Consolidated financial statements are a set of financial statements prepared for a group company…

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 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 January 1, 2021, Pepita Corporation purchased 25% of the outstanding voting shares of Pablito…

A: These are the accounting transactions that are having a monetary impact on the financial statement…

Q: On January 1, 2020, Sarasota Co. purchased 23,000 shares (a 10% interest) in Elton John Corp. for…

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

Q: Harrison Co. owns 20,000 of the 50,000 outstanding ordinary shares of Taylor, Inc. During 2021,…

A: The holding of share are considered as the investment and the  balance of investment can be…

Q: On January 1, 2021, ABC purchased 90% of the outstanding shares of JKL Company at a cost of…

A: Consolidated financial statement includes the components of financial statements to be prepared for…

Q: On January 2, 2020, Howdy Doody Corporation purchased 17% of Ranger Corporation's common stock for…

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

Q: On January 1, 2020, KISSES acquired 90% of the equity share capital of HUGS in a share exchange in…

A: Introduction As per acquisition accounting if any entity acquires another entity then asset is…

Q: BuyCo, Inc., holds 23 percent of the outstanding shares of Marqueen Company and appropriately…

A: Part 1:

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

A: Part 1:

Q: the outstanding shares of JKL Company at a cost of P1,632,000. On that date, JKL had P1,020,000…

A: On January 1, 2021, ABC purchased 90% of the outstanding shares of JKL Company at a cost of…

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

A: Equity represents the capital of the company that is reported on the balance sheet of the company.

Q: On April 1, 2019, Tagaytay Company purchased 25,000 ordinary shares of Sulo Co. at P180 per share, a…

A: Share represents the ownership claim on the company. It is a share part of the share capital. The…

Q: In the December 31, 2020, statement of financial position, what is the carrying amount of the…

A: correct option with all workings are as follows

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

A: The acquisition takes place when one company acquires ownership title on another company in order to…

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.