PROBLEM EAST Corporation purchased 50,000 out of the 200,000 ordinary shares of FAR Corporation on January 1, 2020 at P165 per share given EAST the right to exercise significant influence over FAR Corporation. Any excess of fair value over carrying value was attributed to land. FAR Corp reported P680,000 profit in 2020 and P1,000,000 in 2021. Dividends were paid and EAST received P210,000 in 2020 and P240,000 in 2021. Market values at year end: 2020 P160 and 2021 P175. On Jan 2, 2022, EAST Corporation sold 20,000 of its shares at P175 and exercised the option to account for its remaining investment as an available for sale securities classified at FVOCI. FAR Corporation reported profit of P3,720,000 and gave EAST dividends of P800,000 to all its shareholders. Required: Entries in 2020, 2021, 2022. Give the a) investment balance as at December 31, 2021, and b) Effect on net income in 2021. Give the a) investment balance as at December 31, 2022, and b) effect on net income in 2022.

Q: On October 1, 2021 Delta Insurance Srl sold (and received the payment) a six-month insurance to Teta...

A: Solution Concept Unearned revenue When the payment is received for the income that has not yet been ...

Q: Trucks have the following predicted costs for the next year Rent $120,000 Insurance $5,000 Power $12...

A: Overhead Expenses refers to the costs which are the part of direct costs but not attributable toward...

Q: Discuss capital gains tax using the names and amounts given.

A: Capital gains which are subject to capital gains tax is the tax amount which the company or the tax ...

Q: son Company adds materials, 50% at the start of the process and 50% at the end of the process in Dep...

A: At first, Equivalent units of product will need to be computed based on their completion percentage....

Q: Financing Deficit Stevens Textile Corporation's 2019 financial statements are shown below: Balance...

A: Introduction: Investors and financial experts rely on financial data to examine a company's performa...

Q: Pamana Company's bookkeeper is not familiar with accrual accounting concepts. He determined net inco...

A: Net income means the income left after deducting all expenses and including all income whether opera...

Q: Mandarin Manufacturing Company uses a process cost system with FIFO method of costing to account for...

A: Total cost of goods transferred out is the cost of units transferred to next department which is cal...

Q: Inc. adds materials at the beginning of the process in department USB.  Conversion costs were 70% co...

A: Solution: Equivalent units of production (EUP)    Units % material EUP-Materials % Conversion E...

Q: George 49 and Jean 36 a married couple with no dependents have AGI of 2348000. They have 213000 of m...

A: Taxable Income: It is the part of  gross income  that is subject to IRS taxes. · Alternative minimum...

Q: The following information for the month of March is available from Butters Cookies, Inc.'s accountin...

A: Solution a: Butters Cookies Inc. Bank Reconciliation - March 31 Bank's Cash balance Company's...

Q: Curl is entering the professional hairdryer market. Research shows that their customers wish to pay ...

A: To determine the selling price, cost-plus pricing includes adding a markup to the cost of products. 

Q: A company gets three byproducts A, B and C, in quantities of 6000, 10,000, and 5000 tons, respective...

A: By product refers to the product that is outcomes when the main product is manufactured.

Q: [The following information applies to the questions displayed below.] Del Gato Clinic's cash account...

A: Bank reconciliation: It is a statement drawn up by the business to verify the cash book balance with...

Q: Striaton Café has three partners: Cilan, Chili, and Cress. On January 1, 2021, the three partners ha...

A: Average capital of partners Cilan = [(250000x 6)+(300000x 6)]/12 = 275000 Chilli =50000x 12/12  = 50...

Q: Mayflower Engineered Products purchased and installed a new automated production system to aid in it...

A: a. Taxable income refers to Income minus deductible expenses b. After-tax cash flow= Taxable income-...

Q: Waling-waling Company had 6,400 units of work-in-process inventory in department A on October 1, 202...

A: Under average costing it is assumed that whole of opening inventory is completed during the period, ...

Q: You are the warehouse manager for a multi-location business specializing in old style vinyl records....

A: Solution Working note   warehouse west store sales 18920.00 43860.00 cost of goo...

Q: Use the actuarial method to find the payoff amount for the loan paid in full before its due date. Am...

A: The method which is derived for calculating the amount of allocation between the principal amount an...

Q: While examining the December 31, 2022 financial statements of Lark Company, a new client, you discov...

A: Journal entries means the book of prime entry including debit and credit item. Adjusting entry means...

Q: One subunit of Soaring Sports Manufacturing Company had the following financial results last month: ...

A: The question is based on the concept of Cost Accounting. As per the Bartleby guidelines we are allow...

Q: v the allocation of dividends to each class of stock, assuming the preferred stock dividend is 6% an...

A: Please see the attached solution. 

Q: CASH Transactions Debit Credit Cash receipts 1,280,000   Cash Disbursements   825,000 December 31 ba...

A: Net income under the cash basis of accounting is equal to cash balance as on December 31, 2022 i.e. ...

Q: In June of the current year, Department 2 (last department) received 80,000 units from Department 1....

A: Cost of goods manufactured shows the production cost of the goods that are completed and ready for s...

Q: Choose the correct answer: An investor using the equity method may have an acquisition price in exc...

A: Solution Concept When  acquisition price is greater than share in the net assets at carrying value o...

Q: Take me to the text Top Cuisine Inc. has a July 31 year end. Retained earnings at July 31, 2019 had ...

A: Statement of retained earnings -  Retained earnings statement will be prepared after preparation of ...

Q: Compare and contrast the net income margins of both Company A and B. Do you think the company with t...

A: Net income margin = net income/sales

Q: and 10sses aio. len

A:                                  In this partnership liquidation it is assumed that the realisation ...

Q: Mountain Sports manufactures snowboards. Its cost of making 1,890 bindings is as follóws: (Click the...

A: Total Variable cost = Total Cost - Total Fixed cost Difference = Cost of buying - Cost of Making Net...

Q: Registration of securities with the SEC is usually valid for O 3 years O 2 years O 4 years O 1 year

A: Securities and Exchange Commission (SEC): The Securities and Exchange Commission (SEC) of the United...

Q: n which years do each company have acceptable cash ratios? What has to be done in the other years wh...

A: The cash ratio is a liquidity indicator that demonstrates a company's capacity to meet short-term ob...

Q: While examining the December 31, 2022 financial statements of Bukidnon Company, a new client, you di...

A: Overstated Opening inventory results in lower net profit. Understated Ending inventory results in lo...

Q: Final Income taxation is characterized by: Full taxes are withheld by the income payor at source. Re...

A: Here discuss about the final withhold taxes which are incurred for the certain income payments which...

Q: Nico Manufacturing Company applies process costing in the manufacture of its best-seller product, "b...

A:

Q: A company had stock outstanding as follows during each of its first three years of operations: 1,000...

A: Annual Dividend to Preferred shareholders = No. of preferred share outstanding x Par value per share...

Q: BELOW IS THE INCOME STATEMENT FOR NEW COMPANY FOR JANUARY 2020 SALES PER UNIT $75 SALES VOLUME 18500...

A: Operating Profit = Sales - Total Cost Total cost = Cost of goods sold + Marketing and Administrative...

Q: Equipment acquired on January 8, 20Y1, at a cost of $675,000, has an estimated useful life of 17 yea...

A: Depreciation expenses are charged over the the period. the different method for charging depreciatio...

Q: In a current account, the payee is the debtor and the drawee is the creditor. True False

A: Lets understand the basics. Payee is a person on whom payment is needs to make so he is a creditor. ...

Q: On April 30, 2020, Mindful Company classifies a property in Southern Tagalog as held for sale. The c...

A: Solution Concept The asset is impaired when Carrying value > recoverable amount Recoverable amoun...

Q: Engr. Roque owner of the HarRoqe’s Ice Plant is monitoring the cashflow of the plant. Based on the f...

A: Break-even point = Fixed costs / Contribution per unit Contribution per unit = Selling price per uni...

Q: The following information is from XYZ Triple Stores. The company runs three stores and the December ...

A:   store x store y Retail revenue $17,976 $26250 $37,380 events revenue 11,760 4,620 2,520 tota...

Q: mpute the Productivity Component indicate if

A:                      Working Notes :-                                             In 2020 corporatio...

Q: -3, LO 6-4, LO 7-3] Skip to question   [The following information applies to the questions display...

A: JF termed as Journal entries which are reported into the day book of business and it includes the da...

Q: Exercise 6-13 (Algo) Depreciation calculation methods LO 3 Millco Inc., acquired a machine that cost...

A: Depreciation is considered as an expense charge on the value of the Asset. It can be calculated by u...

Q: Daily Custom Company manufactures plastic chairs in its Processing Department. Direct materials are ...

A:

Q: The cost of ending inventory is: Daily Custom Company manufactures plastic chairs in its Processing ...

A: Equivalent units concept is used when opening or ending work in progress is not 100% complete but pa...

Q: . The general journal entry to record the transaction is:

A: Journal entry is recorded at every business transaction and every transactions involves minimum two ...

Q: Show the deposit slip of

A:   Case -1 Deposit of Cash amounting to P 55000     Deposit Date ____July 8,20X1 Cash    Name ...

Q: Patel has a capital balance of $310,000 after adjusting assets to fair market value. Killingsworth c...

A: Patel’s Capital = $310,000 Killingsworth Contribute = $490,000 Interest = 60% Total Capital after ad...

Q: 6. Find the cash value of a condominium unit if a Php750,000 down payment and a monthly amortization...

A: Down payment (DP) = Php 750,000 Monthly payment (P) = Php 48,375 Period = 10 Years Number of monthly...

Q: Hardy Man, Inc., acquired a machine in 2021 for P 400,000 and erroneously charged the cost to an exp...

A: The straight line method of calculating depreciation is the most simplest way to determine accumulat...

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.