When an investor owns between 20% and 50% of outstanding stock of another company and has significant influence the method is used to account for stock investments

Q: Bramble Corp. had the following information in its financial statements for the years ended 2020 and…

A: Rate of Return = Net income / Common stock = (97,900 - 14,300) / (100,900*10) = 8.28%

Q: The share price for A LTD at 1st July 2019 was $4.40 and at the 31st June 2020 was $5.17. you have…

A: Return on shares means the total return which will be earned from the shares by the shareholder. It…

Q: Dividends on preference shares are in arrears for the current year. If ABC Co. is liquidated, how…

A: The stockholders' equity section of a balance sheet represents the total contribution of the owners.…

Q: What will be the amount of shares outstanding and the share price after the stock dividend.

A: Total number of shares outstanding  = shares*(1+stock dividend) =200000*(1+10%) = 220000 shares…

Q: A limited liability company sells its share capital on the stock exchange. It currently has a share…

A: Limited liability companies are referred to as a type of company under which the owners of the…

Q: The shareholders’ equity of ILP Industries includes the items shown below. The board of directors of…

A: Annual Dividend to preferred stockholders = Par value of Preferred stock issued x dividend rate =…

Q: The following information relates to Midas Ltd, a small but successful investment holding company.…

A: Here discuss about the details of the investment which are made in the equity for fair value through…

Q: At 31 December 2019, B Plc had post-tax profits was $2,500,000 and had an issued share capital of…

A: Basic EPS= Income available to common stock holders/Weighted Average number of shares Weighted…

Q: On December 31, 2021, Scott Company received the following dividends: Investee Company Frost Company…

A: As per the equity investment method, the value of the investment is measured at their cost and that…

Q: If the owner of 200 shares sells his or h the trade is said to have occcured in th _market. Select…

A: There are two types of market one is primary markets where bonds and IPO are issued by companies to…

Q: of the following statements pertain to dividends. Which of them is (are) true? a. Shareholders vote…

A: The dividend is declared to the shareholders from the retained earnings of the business.

Q: Use the following information on a company’s investments in equity securities to answer questions 1-…

A: It is pertinent to note that trading securities need to be accounted at fair value through profit…

Q: How would this example look in the basic accounting equation?Investors selling their own stock to…

A: Step 1A basic accounting equation follows this ruleAssets= Liabilities+ owner’s equationIn the given…

Q: Head owns 80% of Shoulders. Head reports Dividends of $300,000. Shoulders Report Net Income of…

A: Given Parent company (Head) owns 80% of subsidiary company (shoulders).

Q: Compute the Values of an equity share and of preference share of each of the following companies:…

A: The question is related to Valuation of Shares. The details of two companies A and B are given.

Q: The capital structure of ABC Company at December 31, 2019 are as follows: 12% Preference share…

A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: If a firm initially sells 100 shares of Common Stock at $5.00 per share and the stock is currently…

A: Equity portion of the balance sheet of the firm reflect IPO price rather than secondary market price…

Q: In connection with your audit of the financial statements of the Pin Shop Company for the year 2020,…

A: Ordinary shares refers to those shares which are available on the public exchange for the sale. It…

Q: Shareholders wealth is calculated as Select one: a. Number of shareholders X Current market price b.…

A: Shareholder's wealth is collective wealth created by the company and represented by its market…

Q: What method is used for investments in equity securities when the investor has significant influence…

A:

Q: In connection with your audit of the financial statements of the Lovely Company for the year 2020,…

A: Note: Since you have posted a question with multiple sub-parts, we will solve first three subparts…

Q: If the owner of 200 shares sells his or her stock, the trade is said to have occcured in the…

A: If the owner of 200 shares sells his or her stock the trade is said to have occurred in the stock…

Q: Thomas C. Company holds a 15% equity investment in Kayak Zone and treats to its stockholders. How…

A: An associate company is a company that holds a minimum of  20% of shares in another company. If the…

Q: Stockholders are eligible for a dividend if they own the stock on the date ofa. declaration.b.…

A: correct option is B. Record Stockholders are eligible for a dividend if they own the stock on the…

Q: If a company owns 25% of the voting stock of Pink Co. and can exercise significant influence,…

A: Significant influence equity investments: Significant influence equity investments are the…

Q: If a company owns 25% of the voting stock of Pink Co. and can exercise significant influence,…

A: Significant influence equity investments:Significant influence equity investments are the…

Q: The shareholder's equity of Bims Company at December 31, 2018 is presented as follows: 12%…

A: Shareholders Equity Shareholders equity which includes share capital like ordinary shares and…

Q: CBA Corporation was incorporated on January 1, 2020. The following equity-related transactions…

A: Stockholders' Equity Statement For the Year Ended December 31, 2020    Common Stock P 1 par…

Q: Gold Co. received dividends from its common stock investments during the year ended December 31 as…

A: Dividend  arising from  trading  security  is an Dividend income

Q: Walker Ltd. had the following share transactions in 2021: Event Shares Opening balance, common…

A: The weighted average number of common shares outstanding is calculated on the basis of the duration…

Q: The shareholders' equity of Blue Corporation includes OMR 500,000 of OMR 1 par common stock and OMR…

A: Preference dividend is to paid fully, to pay dividend on common stock. Any arrears of dividend will…

Q: Head owns 80% of Shoulders. Head reports Dividends of $300,000. Shoulders reports Net Income of…

A: Dividends towards non controlling interest will be the portion of dividends attributed to them on…

Q: ABC Corporation has an investment of 4,000,000 shares in XYZ Corporation. On December 31, 2021, ABC…

A: Dividend in form of shares given to stockholders is called as Stock Dividend Stock Dividend is…

Q: On December 31, 2021, Scott Company received the following dividends: Investee Company Frost Company…

A: Cost Per Share of Investment in Blare Companies on 31 December 2021 = 280 Total Amount Shares of…

Q: Perseverance Company received dividends from its investments in ordinary shares during the year 2019…

A: To arrange the funds, firm issues various securities and pays return on it. Dividend is an amount…

Q: Required: a. Calculate the amount of the total annual dividend requirement on preferred stock. b.…

A: Hi student Since there are multiple subparts,we will answer only first three subparts. If you want…

Q: You own 190 shares of stock in Green Mild Chili Peppers, Incorporated, that currently sell for…

A: Ex dividend date helps in determining who will get the next dividend if the investor purchases the…

Q: State the stockholder’s equity of the Alphabet Corporation if it has a current net profit of…

A: In finance stockholders equity is the balance or the remaining amount of assets that are available…

Q: At December 31, 2019 and 2018, New Corporation had outstanding 4,000 shares of P 100 par 12%…

A: Cumulative preference shareholders are paid dividend including the arrears before the payment of…

Q: outstanding

A: Outstanding shares of a company refer to the company's stock which is held by its shareholders…

Q: What effect will a three-for-one stock split have on the following items found on a firm's financial…

A: Three for stock split is dividing one stock into three stocks. This stock split does not have any…

Q: A company declares a 5% stock dividend. The debit to Retained Earnings is anamount equal toa. the…

A: Stock Dividends: It refers to the payment of dividends by a company to its existing shareholders, in…

Q: 1 December 2019, B Plc had post-tax profits was $2,500,000 and had an issued share capital of…

A: Earnings per share (EPS) is determined by dividing a company's profit by the number of common stock…

Q: The capital structure of ABC Company at December 31, 2019 are as follows: 12% Preference share…

A: Shareholder's equity is the amount that has been contributed by the investors in a company over a…

Q: ABC Ltd is an Australian listed company. Its results for the financial year ending 30 June 2019 have…

A: Earnings per share (EPS) is calculated by dividing the net adjusted income available for…

Q: Which of the following is issued to shareholders to acquired unissued or treasury shares within a…

A: Issue of shares is an important source of funds arrangement for the business. These can be ordinary…