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- Fairbanks Corporation purchased 400 ordinary shares of Sherman Inc. as a trading investment for E13,200. During the year, Sherman paid a cash dividend of £3.25 per share. At year-end, Sherman shares were selling for £34.50 per share. How much total revenues (all revenues) should be recognized from this investment during the year? Select one: Oa. $1900 Ob. $700 OC $1300 Od. $600On-Ju Company acquired 90% interest in Southwest Company on December 31, 20x4 for P320,000. During 20x5 Southwest had a net income of P22,000 and paid a cash dividend of P7,000. Applying the cost method would give a debit balance in the Investment in Southwest Company account at the end of 20x5 of: P335,000 P333,500 P313,700 P320,000Company A acquired 37% investment in Company B for R196 000. During the first year after acquieition Company B made net income of R400 000. Using the equity accounting method, what will happen to Company A's investment in Company B? Select one: O a. It remains the same O b. It increases by R148 000 O c Ilt decreases by R196 000 O d. It decreases by R148 000
- Jackson Moving & Storage Co. paid $120,000 for 25% of the common stock ofMcDonough Co. at the beginning of the year. During the year, McDonough earned netincome of $50,000 and paid dividends of $20,000. The carrying value of Jackson’s investment in McDonough at the end of the year isa. $150,000.b. $170,000.c. $120,000.d. $127,500.on January 1, 20x1 entitiy A acquires 30% interest in Entity B for 600,000. Entity B reports profit of 200,000 and declares dividends of 50,000 in 20x1. How much is the carrying amount of the investment in associate on Dec31, 20x1Jameson Company acquired 90% interest in Southwest Company on December 31, 20x4 for P320,000. During 20x5 Southwest had a net income of P22,000 and paid a cash dividend of P7,000. the cost method is applied that means it would give a debit balance in the Investment in Southwest Company account at the end of 20x5 of:
- 3. What is the carrying amount of the investment in of the outstanding ordinary shares of Free Company for P5,000,000 cash. Cyber Company accounts for this investment At the date of acquisition, Free Company's net assets had a excess of carrying amount. The land was sold during the Free Company owned land with a fair value of P1,000,000 in At the beginning of current year, Cyber Company bought 30% Problem 17-16 (IAA) by the equity method. carrying amount of P12,000,000. a current year. The remaining difference between the purchase price and ihe carrying amount of the underlying equity cannot be attributed to any identifiable tangible or intangible asset. Accordingly, the remaining difference is allocated to goodwill. Free Company reported net income of P6,000,000 and paid cash dividend of P1,500,000 during the current year. 1. What is the implied goodwill from the acquisition? a. 1,400,000 b. 1,000,000 с. 1,100,000 d. 2. What amount should be reported as investment income for the…23.On Jan 2, 20X1, ABC Company acquired 3,000 12% 3-year P1,000 bonds of Z Corp. at P2,860,702. Effective rate was 14%. ABC designated this investment at amortized cost. How much is the amortized cost in the balance sheet at Dec 31, 20X1 ? 2,860,702 2,901,200 2,912,450 3,000,000year. investment g amount of P8,000,000. ahares of Beta Company an Beta' Company had 80,000 amount and fair valus of 3 600,000 and P3,900,000 mid per-share dividend of . Compute the carrying amount of the investment at year-end. aount of the Problem 17-7 (ACP) On January 1, 2016, Bypass Company acquired as n long term investment for P7,000,000 a 40% interent in an investee when the fair value of the net'assets was P17,500,000. The investee reported the following net losses: broadcas 2016 2017 2018 2019 5,000,000 7,000,000 8,000,000 4,000,000 attributable to a On January 1, 2018, Bypass Company made cash advances of P2,000,000 to the investee. On December 31, 2019, it is not expected that Bypass Company will provide further financial support for the investee. Company has a 20-year broadcast license. 019. 20. he investment in Required: Prepare journal entries from 2016 to 2019 in relation to the investment in associate.
- On April 1 2018, Honda Co., purchased 75% of outstanding common stock of GMC Co., @ OMR 250,000 cash. The Co., common stock OMR 40,000 @12 per share. The fair value of common stock 15 per share. Calculate the investment in GMC Company. Select one: a. OMR 3,750,000 b. OMR 250,000 c. OMR 480,000 d. OMR 600,000(c) Sedgwick Company at December 31 has cash Tk. 20.000, noncash assets Tk. 100,000, liabilities Tk. 55,00, and the following capital balences: Floyd Tk. 45.000 and DeWitt Tk. 20.000. The firm is liquidated, and Tk. 105,000 in cash is received for the noncash assets. Floyd and DeWitt income ratios are 60% and 40%, respectively. Instructions Prepare a schedule of cash payments.16. On January 1, 20x5, Paz acquired 80% of Shey outstanding ordinary shares for P950,000. Paz uses the cost method to record the investment account. The statement of financial position of Paz and Shey on December 31, 20x1 are as follows: Paz Shey Cash 2,500,000 1,000,000 Accounts Receivable 500,000 250,000 Inventory 800,000 200,000 Investment in Shey 950,000 - Land 2,000,000 - Building – net…