Oriole Company owns 40% interest in the stock of Sandhill Corporation. During the year, Sandhill pays $18700 in dividends to Oriole, and reports $303000 in net income. Oriole Company’s investment in Sandhill will increase Oriole's net income by     $121200.   $128680.   $9350.   $7480.

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: balance in Tuao’s investment in Abulug Company

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

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 1, 2020, Chico Company purchased 10% of Winona Company’s outstanding ordinary shares for…

A: Introduction: If an investor owns between 20% to 50% of shares of the investee company, it is…

Q: Unit IV question 3

A: A journal entry is a type of accounting entry used to record a business transaction in a company's…

Q: At the beginning of the year, the Sean Brewery purchased a 25 percent ownership interest in Mark…

A: Investment: It is a monetary asset purchased with the idea that the asset will provide income in the…

Q: 17.At the beginning of the year, Tote, Inc., had $75,000 in its AAA and $90,000 of earnings and…

A: S-corp is an entity which has a pass-through status ie All the income and losses would go to the…

Q: Skysong, Inc. owns 25% of the common shares of Concord Corporation The other 75% of the shares are…

A:

Q: Shaun Company reports a net income of P280,000 each year and pays an annual cash dividend of…

A: given that, Shaun company reports net income = P280000 Shaun company pays annual cash dividend =…

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: Senpai Company acquires 15% of Kohai Company’s common stock for P600,000 cash and carries the…

A: Fair value of net identifiable assets = Fair value of identifiable assets - Fair value of…

Q: Griffey Corporation has 22,000 of accumulated EP and incurs a loss of $12,000 for the year. The loss…

A: Profits available for dividend distribution=Accumulated Earnings and profits  - Loss of the…

Q: Rome Inc. acquired 50,000 ordinary shares of Egypt Company at P120 per share. On February 14, 2020,…

A: Shareholder means the owner of the company who is holding share in its name. Right share means where…

Q: What amount should Eduardo report as total revenue related to its investment in Letecia Company for…

A: 1. Preference shares have first right to get Dividend.  After that            comes ordinary shares.…

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: Hamilton Boats issued 175,000 shares of its no par common stock to Sudoku Motors in exchange for…

A: Common stock: These are the ordinary shares that a corporation issues to the investors in order to…

Q: Panner, Inc., owns 30 percent of Watkins and applies the equity method. During the current year,…

A: Equity method: Equity method is the method used for accounting equity investments which claim a…

Q: Noemy Co. owns 15,000 of the 100,000 ordinary shares of Republic Corporation. The investment is…

A: Step 1 Journal is the part of book keeping.

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: Senpai Company acquires 15% of Kohai Company’s common stock for P600,000 cash and carries the…

A: Working note: Computation of fair value of the previously acquired 15% common stock of K Company:…

Q: Vivienne Company owns 15,000 of the 100,000 ordinary shares of Rain Corporation. The investment is…

A: The calculation of cash dividend will be based on the number of eligible shares that are receivable…

Q: Senpai Company acquires 15% of Kohai Company’s common stock for P600,000 cash and carries the…

A: Total fair value on acquisition date = Purchase of 15% share + Purchase of 60% share + fair value of…

Q: ABC owns 30% of MELY, which it purchased on 1 January 20X7 for $5,000,000. At that date, MELY had…

A: The corporation which has substantial amount of investment in other corporation is called parent…

Q: Lewis Corporation has two shareholders who are brothers: Ray owns 50% of the stock and Robert owns…

A: Appreciated property dividend -   Property is distributed to the shareholder(s) at FMV and gain is…

Q: Arcola, Inc., acquires all 40,000 shares of Tuscola Company for $725,000. A year later, when…

A:

Q: Kim Company bought 30% of the shares of Phelps, Inc., at the start of 2016. Kim paid $10 million for…

A:

Q: Joe Co. owns 25% of the outstanding ordinary shares of Monkey Co. Monkey has outstanding…

A: Following is the answer to the given question

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: Garfun, Inc., owns all of the stock of Simon, Inc. For 2018, Garfun reports income (exclusive of any…

A:

Q: AUSTERE Co. owns 20% of the ordinary shares of SEVERE, Inc. SEVERE additionally has redeemable…

A: Shares refers to a particular value and capital that it issues to raise funds from the stock market…

Q: Choose the correct. Arcola, Inc., acquires all 40,000 shares of Tuscola Company for $725,000. A year…

A: Answer:   Option c.

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: Santo, Inc. acquired 30% of Nino Corp.'s voting stock on January 1, 2008 for P360,000. During 2008,…

A: Formula: Gain = Sale price - Purchase price

Q: On January 1, 2020, Culver Co. purchased 24,000 shares (a 10% interest) in Elton John Corp. for…

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

Q: (TCO A) Bend Inc. holds 25% of the outstanding voting shares of Calico Co. and appropriately applies…

A: Intra entity profit refers to the profit received from an intra entity transaction.

Q: ayser SE owns 25% of Plano Company. For the current year, Plano reports net income of $190,000 and…

A: Solution:                                                                    Record of entries in…

Q: ndy Company owns 15,000 of the 100,000 ordinary shares of X Corporation. The investment is accounted…

A: Journal: Journal is considered as a book of original entry because all the transactions that have…

Q: Shaun Company reports a net income of P280,000 each year and pays an annual cash dividend of…

A: The difference between Purchase Price and Book Value is either Goodwill or Capital Reserve. When…

Q: Sandy Company owns 15,000 of the 100,000 ordinary shares of X Corporation. The investment is…

A: Answer: If she opted to receive cash instead of share dividend, then she will receive deividend @…

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: 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: At the start of the current year, Violet Company held 30% of ABC Company's 150,000 outstanding…

A: Dividend Income:  Dividend income is paid out of the profits of a corporation to the stockholders.…

Q: Senpai Company acquires 15% of Kohai Company's common stock for P600,000 cash and carries the…

A: Total fair value on acquisition date = Purchase of 15% share + Purchase of 60% share + fair value of…

Q: Georgio owns a 20 percent profits and capital interest in Rain Tree LLC. For the current year, Rain…

A: business income (loss) is allocated to Gorgio for the year Description Total Amount 20% allocated…

Q: Oriole Company owns 3100 of the 10000 outstanding shares of Skysong Corporation common stock. During…

A: Investment revenue  is amount  earned  on investment

Q: DeMilo, Inc., owns 100 percent of the 40,000 outstanding shares of Ricardo, Inc. DeMilo currently…

A: Equity method: Equity method is the method used for accounting equity investments which claim a…

Q: Senpai Company acquires 15% of Kohai Company’s common stock for P600,000 cash and carries the…

A: Goodwill refers to the form of an intangible asset that reflects the overall reputation of the…

Q: Evan Company reports net income of $183,000 each year and declares an annual cash dividend of…

A: When a company's ownership stake in another company is worth 20–50 percent of the investee's stock,…

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.