Swifty Ltd. invested $1,250,000 in Gloven Corp. early in the current year, receiving 25% of its outstanding shares. At the time of the purchase, Gloven had a carrying amount of $3,637,500. Gloven pays out 35% of its net income in dividends each year. Assume that Swifty applies IFRS and that the 25% holding of Gloven shares is enough to enable Swifty to significantly influence the operating, investing, and financing decisions of Gloven. Use the information in the following T account for the investment in Gloven to answer the following questions: Investment in Gloven Corp. 1,250,000 107,000 (a) 37,450 19,500 Your answer is incorrect. How much was Swifty's share of Gloven's net income for the year? Share of Swifty in Gloven's net income $
Swifty Ltd. invested $1,250,000 in Gloven Corp. early in the current year, receiving 25% of its outstanding shares. At the time of the purchase, Gloven had a carrying amount of $3,637,500. Gloven pays out 35% of its net income in dividends each year. Assume that Swifty applies IFRS and that the 25% holding of Gloven shares is enough to enable Swifty to significantly influence the operating, investing, and financing decisions of Gloven. Use the information in the following T account for the investment in Gloven to answer the following questions: Investment in Gloven Corp. 1,250,000 107,000 (a) 37,450 19,500 Your answer is incorrect. How much was Swifty's share of Gloven's net income for the year? Share of Swifty in Gloven's net income $
Chapter22: S Corporations
Section: Chapter Questions
Problem 23CE
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Transcribed Image Text:Swifty Ltd. invested $1,250,000 in Gloven Corp. early in the current year, receiving 25% of its outstanding shares. At the time of the
purchase, Gloven had a carrying amount of $3,637,500. Gloven pays out 35% of its net income in dividends each year. Assume that
Swifty applies IFRS and that the 25% holding of Gloven shares is enough to enable Swifty to significantly influence the operating,
investing, and financing decisions of Gloven.
Use the information in the following T account for the investment in Gloven to answer the following questions:
Investment in Gloven Corp.
1,250,000
(a)
107,000
37,450
19,500
Your answer is incorrect.
How much was Swifty's share of Gloven's net income for the year?
Share of Swifty in Gloven's net income $
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