AUSTERE Co. owns 20% of the ordinary shares of SEVERE, Inc. SEVERE additionally has redeemable preference shares outstanding with a dividend rate of 6% and a par value of $8,000,000. SEVERE made a profit of $4,000,000 during the year and paid a cash dividend of $150,000 to preference shareholders. How much of SEVERE's profit does AUSTERE get?
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- AUSTERE Co. owns 20% of SEVERE, Inc.’s ordinary shares. SEVERE also has outstanding redeemable preference shares with dividend rate of 6% and aggregate par value of ₱8,000,000. During the year, SEVERE reported profit of ₱4,000,000 and declared ₱150,000 cash dividend to preference shareholders. How much is AUSTERE’s share in the profit of SEVERE? 704,000 800,000 512,000 770,000on 1/1/20, ABC Corp bought 500 shares of XYZ Corp for $10,000. XYZ Corp has 25,000 shares outstanding. on 6/1/20, XYZ pays a $100,000 cash dividend to all shareholders. On 12/31/20, XYZ is trading at $22/share and during 2020 XYZ reported net income of $250,000. What is the total effect on net income for ABC from this investment? Assume ABC reports annually on a calendar year basis.Bay Company holds 60,000 of Fay Company's 200,000 outstanding shares and 8,000 of Hay Company's 400,000 outstanding shares. During the year, Fay declared and paid cash dividends of P10 per share. In the first quarter of the year, Hay declared and distributed a 10% share dividend. Hay also declared and paid its regular cash dividends to its shareholders amounting to P2.50 per share. What amount should be reported as dividend revenue for the current year? | as
- 1. Noemy Co. owns 15,000 of the 100,000 ordinary shares of Republic Corporation. The investment is accounted as Financial Assets at Fair Value Through Profit or Loss (FA-FV-P/L) with a carrying value of $3,300,000. Republic Corporation declared a 10% stock dividend but gave the investors the option to receive $210 per whole stock of dividend. What amount of cash will Noemy Co. receive? What is the journal entry to record the dividends if Noemy Co. opted to receive cash? 2. Tulips Company owned 50,000 shares of another Pam Company. These 50,000 shares have an original price of $100 per share. The investee distributed 50,000 rights to Tulips Company. Tulips Company was entitled to buy one new share for $140 and five of these rights. Each share had a market value of $150 and each right had market value of $10 on the date of issuance. Tulips Company exercised all rights. The share rights are accounted for separately and measured initially at fair value. How much should be recorded for the…Sandy Company owns 15,000 of the 100,000 ordinary shares of X Corporation. The investment is accounted as Financial Assets at Fair Value Through Profit or Loss (FA-FV-P/L) and has a carrying value of P3,300,000. X Corporation declared a 10% stock dividend but gave the investors the option to receive P210 per whole stock of dividend. How much cash will Sandy receive?Sandy Company owns 15,000 of the 100,000 ordinary shares of X Corporation. The investment is accounted as Financial Assets at Fair Value Through Profit or Loss (FA-FV-P/L) and has a carrying value of P3,300,000. X Corporation declared a 10% stock dividend but gave the investors the option to receive P210 per whole stock of dividend. How much cash will Sandy receive? In your solutions, show the journal entry to record the dividends if Sandy opted to receive cash. *
- Black Swan provided the following data for 2020: 1. On September 1, Black Swan received a P500,000 cash dividend from Dionysus Company in which Black Swan owns a 30% interest. 2. On October 1, Black Swan received a P60,000 cash dividend from Seesaw Corporation. Black Swan owns a 35% interest in Seesaw. 3. Black Swan owns a 10% interest in BST, which declared a P2.000.000 cash dividend on November 21. 2020 payable on January 23, 2021. What amount should be reported as dividend income for 2020? P700,000 P560,000 P500,000 P200,000Pearson Inc. reports net income earnings of $1,170,000 while paying $120,000 in cash dividends this year. Santa Fe Co. earns $300,000 in net income and distributes $30,000 in dividends. Pearson has held a 70% interest in Santa Fe for several years, an investment with an acquisition-date fair value equal to the book value of its underlying net assets. Pearson uses the initial value method to account for these shares. On January 1 of the current year, Santa Fe acquired in the open market $150,000 of Pearson's 8% bonds. The bonds had originally been issued several years ago for 92, reflecting a 10% effective interest rate. On the date of purchase, the book value of the bonds payable was $144,900. Santa Fe paid $139,800 based on a 12% effective interest rate over the remaining life of the bonds. What is consolidated net income for this year?Oriole Company owns 40% interest in the stock of Sandhill Corporation. During the year, Sandhill pays $18700 in dividends to Oriole, and reports $303000 in net income. Oriole Company’s investment in Sandhill will increase Oriole's net income by $121200. $128680. $9350. $7480.
- Vivienne Company owns 15,000 of the 100,000 ordinary shares of Rain Corporation. The investment is accounted as Financial Assets at Fair Value Through Profit or Loss (FA-FV-P/L) and has a carrying value of P3,300,000. Rain Corporation declared a 10% stock dividend but gave the investors the option to receive 210 per whole stock of dividend. How much cash will Vivienne receive? In your solutions, show the journal entry to record the dividends if Vivienne opted to receive cash.Handley Ltd. acquired 42% of the common shares of Lecce Ltd. on January 1, 2024, by paying $5.68 million for 142,000 shares. Lecce declared a cash dividend of $0.60 per share in each quarter that Handley received on March 20, June 20, September 20, and December 20. Lecce reported net income of $1.42 million for the year. At December 31, the market price of the Lecce shares was $44 per share.XYZ, Inc. owns 2,500 of the 10,000 outstanding shares of the common stock of ABC Corporation. The stock was originally purchased on January 1, Year 1 for $5 per share. During the year, ABC earned $100,000 in revenue and paid out dividends in the amount of $40,000. At December 31, Year 1, the stock is valued at $6 per share. By what amount should the Investment in ABC Corporation account increase as a result of this year's transactions? $10,000 O $25,000 O $15,000 O $2,500