ADVANCED ACCOUNTING W/CONNECT>CUSTOM<
ADVANCED ACCOUNTING W/CONNECT>CUSTOM<
18th Edition
ISBN: 9781307126402
Author: Hoyle
Publisher: MCG/CREATE
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Chapter 1, Problem 21P
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Determine the amounts that would appear on Company H’s 2018 income statement relating to its ownership and partial sale of its investment in Company S’s common stock.

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On January 1, 2016, Halstead, Inc., purchased 75,000 shares of Sedgwick Company common stock for $1,480,000, giving Halstead 25 percent ownership and the ability to apply significant influence over Sedgwick. Any excess of cost over book value acquired was attributed solely to goodwill.Sedgwick reports net income and dividends as follows. These amounts are assumed to have occurred evenly throughout these years. Dividends are declared and paid in the same period.On July 1, 2018, Halstead sells 12,000 shares of this investment for $25 per share, thus reducing its interest from 25 to 21 percent, but maintaining its significant influence.Determine the amounts that would appear on Halstead’s 2018 income statement relating to its ownership and partial sale of its investment in Sedgwick’s common stock.
On January 1, 2019, Halstead, Inc., purchased 73,000 shares of Sedgwick Company common stock for $1,418,000, giving Halstead 25 percent ownership and the ability to apply significant influence over Sedgwick. Any excess of cost over book value acquired was attributed solely to goodwill.   Sedgwick reports net income and dividends as follows. These amounts are assumed to have occurred evenly throughout these years. Dividends are declared and paid in the same period.     Net Income Annual Cash Dividends (paid quarterly) 2019 $410,000 $101,000 2020 537,000 127,000 2021 613,000 150,000     On July 1, 2021, Halstead sells 11,680 shares of this investment for $25 per share, thus reducing its interest from 25 to 21 percent, but maintaining its significant influence.    Determine the amounts that would appear on Halstead’s 2021 income statement relating to its ownership and partial sale of its investment in Sedgwick’s common stock. (Round your intermediate calculations to the…
On January 1, 2015, P Corporation purchased 80% of S Company’s outstanding shares for ₱620,000. At that date, all of S Company’s assets and liabilities had market values approximately equal to their book values and no goodwill was included in the purchase price. The following information was available for 2015: Income from own operations of P Corporation, ₱150,000; Operating loss of S Company, ₱20,000. Dividends paid in 2015 by P Corporation, ₱75,000; by S Company to P Corporation, ₱12,000. On July 1, 2015, there was a downstream sale of equipment at a gain of ₱25,000. The equipment is expected to have a remaining useful life of 10 years from the date of sale. Also, on January 1, 2015, there was an upstream sale of furniture at a loss of ₱7,500. The furniture is expected to have a useful life of five years from the date of sale. Non-controlling interest is measured at fair market value. How much is the consolidated net income attributable to parent shareholders’ equity? A. ₱97,250B.…

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ADVANCED ACCOUNTING W/CONNECT>CUSTOM<

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