Please help me in all subparts Exercise 12-23 (Algo) Equity method [LO12-6, 12-7]On January 1, 2021, Cameron Inc. bought 30% of the outstanding common stock of Lake Construction Company for $420 million cash,giving Cameron the ability to exercise significant influence over Lake's operations. At the date of acquisition of the stock, Lake's netassets had a fair value of $800 milion. Its book value was $700 million. The difference was attributable to the fair value of Lake'sbuildings and its land exceeding book value, each accounting for one-half of the difference. Lake's net income for the year endedDecember 31, 2021, was $250 millon. During 2021, Lake declared and paid cash dividends of $30 million. The buildings have aremaining life of 5 years.Required:1. Complete the table below and prepare all appropriate journal entries related to the investment during 2021, assuming Cameronaccounts for this investment by the equity method2. Determine the amounts to be reported by Cameron,Complete this question by entering your answers in the tabs below,Required 1 Required 1 G3 Required 2CalculationDetermine the amounts to be reported by Cameron, (Amounts to be deducted, incluating losses and cash outflows, should beindicated with a minus sign. Enter your answers in milions, (ie, 10,000,000 should be entered as 103.)in miliona)& Investment in Cameron's 2021 balance sheetinvestment revenue in the income statemente Investing activities in the statement of cash flows(10/

Equity Method :— Equity method in accounting is the process of treating of investments in associate…

Required: 1. Complete the table below and prepare all appropriate journal entries related to the investment during 2021, assuming Cameron accounts for this investment by the equity method 2. Determine the amounts to be reported by Cameron Complete this question by entering your answers in the tabs below, Required 1 Calculation Required 1 G Required 2 Determine the amounts to be reported by Cameran. (Amounts to be deducted, incluating losses and cash outflows, should be indicated with a minus sign. Enter your answers in milions, (e, 10,000,000 should be entered as 103.) initions) & investment in Cameron's 2021 balance sheet investment revenue in the income statement e Investing activities in the statement of cash flows (10/

Required: 1. Complete the table below and prepare all appropriate journal entries related to the investment during 2021, assuming Cameron accounts for this investment by the equity method 2. Determine the amounts to be reported by Cameron Complete this question by entering your answers in the tabs below, Required 1 Calculation Required 1 G Required 2 Determine the amounts to be reported by Cameran. (Amounts to be deducted, incluating losses and cash outflows, should be indicated with a minus sign. Enter your answers in milions, (e, 10,000,000 should be entered as 103.) initions) & investment in Cameron's 2021 balance sheet investment revenue in the income statement e Investing activities in the statement of cash flows (10/

Corporate Financial Accounting

14th Edition

ISBN:9781305653535

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

ChapterD: Investments

Section: Chapter Questions

Problem D.7EX

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Question 10 On January 2, 2020, Tuao Company purchased 10% of Abulug Company’s outstanding ordinary shares for P20,000,000. Tuao is the largest single shareholder in Abulug and this gives Tuao the power to participate in the financial and operating policy decisions of the Abulug but is not control or joint control over those policies. Abulug reported profit of P10,000,000 and paid dividend of P4,000,000. What should be the balance in Tuao’s investment in Abulug Company at the end of 2020? Group of answer choices P20,600,000 P21,000,000 P20,000,000 P21,400,000
14 - On 04.05.2020, our enterprise sold 1,000 shares of Kardemir A.Ş., which it had purchased for a temporary investment of 12 TL, for 10 TL each, after paying a commission of 250 TL to the relevant bank, the remaining amount was deposited into the bank account of the enterprise. Which of the following calculations is incorrect? a) 110 Stocks Hs. 12.000 TL Creditor B) 655 Securities Sales Losses Hs. 2.000 TL Debt NS) 653 Commission Expenses Hs. 250 TL Borrowed D) 102 Banks Hs. 9.750 TL Borrowed TO) 655 Securities Sales Losses Hs. 2.000 TL Creditor
Question 5 On January 2, 2020, Theodora Company purchased 40,000 shares of Byzantine, Inc. stock at P100 per share. Brokerage fees amounted to P120,000. A P5 dividend per share of Byzantine, Inc. shares had been declared on December 15, 2019, to be paid on March 31, 2020 to shareholders of record on January 31, 2020. The shares are designated as FVTOCI. On December 31, 2020 the investment has a fair value of P4,200,000. How much should be recognized in the 2020 other comprehensive income related to these securities? Group of answer choices P400,000 P200,000 P80,000 P280,000
MC 5 P327On April 1, PP, Inc., exchanges P430,000 fair-value consideration for 70% of the outstanding stock of RR Corporation. The remaining 30% of the outstanding shares continued to trade at a collective fair value of P165, 000. RR's identifiable assets and liabilities each had book values that equaled their fair values of April 1 for a net total of P500,000. RR generated annual (12-month) revenues of P600,000 and expenses of P360,000 and paid no dividends. On a December 31 consolidated balance sheet, what should be reported as non-controlling interest?MC 6 P327-28January 1, 20x4, Payne Corp. purchased 70% of Shayne Corp's P10 par common stock for P900,000. On this date, the carrying amount of Shayne's net assets was P1,000,000. The fair values of Shayne's identifiable assets and liabilities were the same as their carrying amounts except for plant assets (net), which were P200, 000 in excess of the carrying amount. For the year ended December 31, 20x4, Shayne had net income of…
Problem 11. On May 5, 2019, MacDougal Corp. exchanged 2,000 shares of its P25 par value ordinary treasury shares for a patent owned by Masset Co. The treasury shares were acquired in 2018 for P45,000. At May 5, 2019, MacDougal's ordinary shares was quoted at P38 per share, and the patent had a carrying value of P68,000 on Masset's books. MacDougal should record the patent at what amount?
Question 7 During 2020, Crane Company purchased 91000 shares of Novak Corporation common stock for $1370000 as an equity investment. The fair value of these shares was $1299000 at December 31, 2020. Crane sold all of the Novak stock for $16 per share on December 3, 2021, incurring $67000 in brokerage commissions. Crane Company should report a realized gain on the sale of stock in 2021 of $86000. $19000. $157000. $90000.
Question 46 During 2021, Stout Inc. had the following activities related to its financial operations: Carrying value of convertible preferred stock in Stout, converted into common shares of Stout $ 540,000 Payment in 2021 of cash dividend declared in 2020 to preferred shareholders 279,000 Payment for the early retirement of long-term bonds payable (carrying amount $3,930,000) 3,975,000 Proceeds from the sale of treasury stock (on books at cost of $387,000) 450,000 The amount of net cash used in financing activities to appear in Stout's statement of cash flows for 2021 should be $3,264,000. $2,985,000. $3,822,000. $3,804,000.
13 - On 04.05.2020, our enterprise sold 1,000 of the shares of Kardemir A.Ş., which it had purchased for a temporary investment of 12 TL, for 15 TL each, and after paying a commission of 250 TL to the relevant bank, the remaining amount was deposited into the bank account of the enterprise. Which of the following calculations is incorrect? a) 653 Commission Expenses Hs. 250 TL Borrowed B) 110 Stocks Hs. 12.000 TL Creditor NS) 655 Securities Sales Profits Hs. 3.000 TL Creditor D) 102 Banks Hs. 14.750 TL Debtor TO) 645 Securities Sales Profits Hs. 3.000 TL Debtor
Question 6 On June 1, 2020, Ping Corp. purchased 10,000 of Pong’s 50,000 outstanding shares at a price of P6.00 per share. Pong had earnings of P3,000 per month during 2020 and paid dividends of P10,000 on March 1, 2020 and P12,500 on December 1, 2020. The fair value of Pong’s shares was P6.50 per share on December 31, 2020. Which statement is correct? Group of answer choices Assuming that the investment is FVTOCI, the total effect on Ping’s profit or loss for the year ended December 31, 2020 is P7,500. Assuming that the investment is an associate, the total effect on Ping’s profit or loss for the year ended December 31, 2020 is P3,600. After all closing entries for 2020 are completed, the effect of the increase in fair value on total shareholders' equity would be the same amount under the FVTOCI and FVTPL approaches. Assuming that the investment is FVTPL, the total effect on Ping’s profit or loss for the year ended December 31, 2020 is P2,500.
Problem 12-13 (Algo) B Equity method [LO12-6, 12-7] Northwest Paperboard Company, a paper and allied products manufacturer, was seeking to gain a foothold in Canada. Toward that end, the company bought 40% of the outstanding common shares of Vancouver Timber and Milling. Inc., on January 2, 2021, for $570 million. At the date of purchase, the book value of Vancouver's net assets was $860 million. The book values and fair values for all balance sheet items were the same except for inventory and plant facilities. The fair value exceeded book value by $10 million for the inventory and by $15 million for the plant facilities The estimated useful life of the plant facilities is 12 years. All inventory acquired was sold during 2021. Vancouver reported net income of $190 million for the year ended December 31, 2021. Vancouver paid a cash dividend of $30 million. Required: 1. Prepare all appropriate journal entries related to the investment during 2021. 2. What amount should Northwest report…
Exercise 4 – 6On January 1, 2020, Blunt Co. purchased 50,000 ordinary shares of Powter Co. at ₱16 per share. The shares are classified as financial asset at fair value through other comprehensive income. Powter declared and paid dividends of ₱4 and ₱5 per share in 2020 and 2021, respectively. At the end of 2020 and 2021, Powter’s shares were trading at ₱17 and ₱14, respectively.1. Determine the dividend income recognized by Blunt on the equity instrument in 2020 and 2021.2. Determine the carrying amount of the equity instrument on Blunt’s statement of financial statement on December 31, 2020 and December 31, 2021.3. Determine the unrealized gain or loss on change in fair value recognized by Blunt in its profit or loss statement for the year ended December 31, 2020 and December 31, 2021.4. Determine the cumulative balance of the unrealized gain or loss recognized in the other comprehensive income of Blunt’s shareholders’ equity on December 31, 2020 and December 31, 2021.
GL1501 - Based on Problem 15-4A LO P4 Twist Corp. had no short-term investments prior to year 2017. It had the following transactions involving short-term investments in available-for-sale securities during 2017. Apr. 16 Purchased 5,000 shares of Lafayette Co. stock at $26 per share. July 7 Purchased 3,500 shares of CVF Co. stock at $51 per share. 20 Purchased 1,600 shares of Green Co. stock at $18 per share. Aug. 15 Received an $1.20 per share cash dividend on the Lafayette Co. stock. 28 Sold 3,000 shares of Lafayette Co. stock at $29 per share. Oct. 1 Received a $3.30 per share cash dividend on the CVF Co. shares. Dec. 15 Received a $1.40 per share cash dividend on the remaining Lafayette Co. shares. 31 Received a $2.70 per share cash dividend on the CVF Co. shares.