Young Co. acquired a 60% interest in Tomlin Corp. on December 31, 2003 for $630,000. During 2004, Tomlin had net income of $400,000 and paid cash dividends of $100,000. At December 31, 2004, the balance in the investment account should be
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2. Young Co. acquired a 60% interest in Tomlin Corp. on December 31, 2003 for $630,000. During 2004, Tomlin had net income of $400,000 and paid cash dividends of $100,000. At December 31, 2004, the balance in the investment account should be
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- On January 1, 2002, Capitech Corporation acquired Logirun, Inc. as a long-term investment for ₱250,000 (a 30 percent ordinary share interest in Logirun). On that date, Logirun had net assets with a book value and fair value of ₱800,000. During 2002, Logirun reported profit of ₱90,000 and declared and paid cash dividends of ₱20,000. What is the maximum amount of income that Capitech should report from this investment for 2002? 6,000 26,750 21,000 27,000On January 2, 20x1, Paul Corp. acquired 20% ownership interest in Simon Corp. for P1,350,000 and the carries the investment using the cost model. On December 31, 20x1, Simon Corp. declared and paid dividends amounting to P500,000 and the net income was P2,000,000. On January 10, 20x2, Paul Corp. acquired another 50% ownership interest in Simon Corp for P3,000,000. At that date, Simon Corp. has identifiable assets with book value of P6,000,000 and fair value of P7,200,000 and it has liabilities with book and fair value of P1,500,000. Assuming Paul Corp. measures the NCI at fair value amounting to P2,250,000, what is the amount of goodwill?On July 1, 2023, Jerry Corporation acquired 25% of the shares of Von, Inc. for P1,000,000. At that date, the equity of Von was P4,000,000, with all the identifiable assets and liabilities being measured at amounts equal to fair value. The table below shows the profits and losses made by Von during 2003 to 2007: Year Profit (Loss)2023 P200,0002024 (2,000,000)2025 (2,500,000)2026 160,0002027 300,000 1. The carrying amount of the investment in Von, Inc. as of December 31,2024 is2. The amount to be recognized in 2025 profit or loss related to the investment in Von, Inc. is3. The amount to be recognized in 2026 profit or loss related to the investment in Von, Inc. is4. The amount to be recognized in 2027 profit or loss related to the investment in Von, Inc. is5. The amount of the investment in Von, Inc. as of December 31,2027 is6. Prepare all journal entries from 2023 to 2027
- 2. On January 1, year 1, ABC Company purchased 80% of the stock of XYZ for P4,000,000 cash. Prior to the acquisition, XYZ had 100,000 shares of stock outstanding. On the date of acquisition, XYZ's stock had fair value of P52 per share. During the year, XYZ reported P280,000 in net income and paid dividends of P50,000. What is the balance in the noncontrolling interest account on ABC's balance sheet on December 31, year 1?(TCO A) Adelman Company owns 45% of the outstanding voting common stock of Craig Corp. and has the ability to significantly influence the investee's operations. On January 3, 20X1, the balance in the Investment in Craig Corp. account was $462,000. Amortization associated with this acquisition is $10,000 per year. During 20X1, Craig earned a net income of $105,000 and paid cash dividends of $20,000. Previously in 20X0, Craig had sold inventory costing $28,000 to Adelman for $40,000. All but 20% of that inventory had been sold to outsiders by Adelman during 20X0. Additional sales were made to Adelman in 20X1 at a transfer price of $60,000 that had cost Craig $45,000. Only 10% of the 20X1 purchases had not been sold to outsiders by the end of 20X1.Required:(A) What amount of unrealized intra-entity inventory profit should be deferred by Adelman at December 31, 20X0?(B) What amount of unrealized intra-entity profit should be deferred by Adelman at December 31, 20X1?(C) What amount of…On January 2, 20x1, Paul Corp. acquired 20% ownership interest in Simon Corp. forP1,350,000 and the carries the investment using the cost model. On December 31, 20x1,Simon Corp. declared and paid dividends amounting to P500,000 and the net income wasP2,000,000. On January 10, 20x2, Paul Corp. acquired another 50% ownership interest in Simon Corp forP3,000,000. At that date, Simon Corp. has identifiable assets with book value of P6,000,000and fair value of P7,200,000 and it has liabilities with book and fair value of P1,500,000.Assuming Paul Corp. measures the NCI at fair value amounting to P2,250,000, what is theamount of goodwill? 600,000 750,000 300,000 210,000
- At the beginning of the year, ABC Corp. purchased 40% of the outstanding ordinary shares of an investee. It paid P2,500,000. The net assets of the investee were valued P6,000,000 but was only carried in the books at P5,000,000. The difference is attributable to an equipment that has 5 years remaining useful life. During the year, the investee reported P800,000 net income, paid P500,000 dividends and made upstream sale to ABC resulting to a gross profit of P50,000. ABC still have 30% of the inventory from the upstream sale. What should ABC report as investment income?On October 15, 2020, the Liza Company received a liquidating dividend of P100,000 from Edward Company. The entity owned 25,000 shares, representing 5% ownership interest in this mining company, at a cost of P2,500,000. A. What amount should be reported as investment in David Company for the year ended December 31, 2020? B. What amount of dividend income should be reported for the year ended December 31,2020?At the beginning of the year, the Sean Brewery purchased a 25 percent ownership interest in Mark Pub. The investment cost $12 million. At year-end, Mark Pub declared and paid cash dividends to shareholders totaling $320,000, after reporting earnings of $2.0 million. Calculate the book value of Sean’s equity investment in Mark Pub at year-end assuming that Sean Brewery reported a loss of $1.2 million instead of a profit of $2.0 million and still paid its dividend of $320,000.
- Willard Co. acquired a 30% interest in Diltronics for $420,000 and appropriately applied the equity method. During the first year, Diltronics reported net income of $250,000 and paid cash dividends totaling $50,000. What amount will Willard report as it relates to the investment at the end of the first year on its income statement? Show the calculation used to get the answer Investment earnings totaling $75,000 Investment earnings totaling $45,000 Net investment earnings totaling $150,000 Receipt of dividends totaling $15,000On January 1, 2011, ABC Co. purchased 20,000 shares of the 100,000 total outstanding shares of P Inc for P4,000 000. P’s assets and liabilities approximate their fair values. In 2011 , P Inc. reported profit of P12,000,000 and declared and paid cash dividends of P800,000.In 2012, P reported loss of P8,000,000, declared and issued 10% stock dividends, and reported gain on property revaluation of P2,000,000 and loss on exchange differences on translation of foreign operations of P400,000.How much is the share in profit or loss of the associate in 2011? 2,240,0002,400,000160,0000 How much is the carrying amount of the investment as of December 31, 2011? 4,000,0006,240,0006,400,0006,560,000 How much is the investment income (loss on investment) to be recognized in profit or loss in 2012? (1,280,000)400,000(1,600,000)320,000 How much is the net share in the other comprehensive income of the associate in 20x2?320,000(1,280,000)1,280,0000How much is the carrying amount of the investment as of…