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?
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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?
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- 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. *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.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…
- on 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.Black company owned 50,000 ordinary shares which were purchased for P120 per share. During the year, theinvestee distributed 50,000 stock rights to the investor. The investor was entitled to buy one new share for P90 cash and two of these rights. Each share had a market value of P130 and each right had a market value of P20 on the date of issue. What amount should be debited to the investment account if the rights were not accounted for separately?ACE Ltd has an outstanding shares of 10,000,000 shares. Kimmy Ltd purchases 100,000 shares of ACE Ltd at $4 per share. Transaction cost is $1,000. How much will the company capitalise if the investment is classified at fair value through OCI? Choose one of the following answers. 401,000 None of the above 399,000 400,000
- Black company owned 50,000 ordinary shares which were purchased for P120 per share. During the year, the investee distributed 50,000 stock rights to the investor. The investor was entitled to buy one new share for P90 cash and two of these rights. Each share had a market value of P130 and each right had a market value of P20 on the date of issue. What amount should be debited to the investment account if the rights were not accounted for separately?Black company owned 50,000 ordinary shares which were purchased for P120 per share. During the year, the investee distributed 50,000 stock rights to the investor. The investor was entitled to buy one new share for P90 cash and two of these rights. Each share had a market value of P130 and each right had a market value of P20 on the date of issue. What amount should be debited to the investment account if the rights were not accounted for separately? Present solution in good accounting formThe Apex Corporation sells one million shares of its $0.02 par value Common Stock for $15 per share. The effects of this transaction on Apex Corporation’s accounts are: Select one: a. Cash +$15 million, Common Stock +$20,000, Additional Paid-in Capital +$14,980,000. b. Cash +$20,000, Common Stock +$20,000, No Effect on Additional Paid-in-Capital. c.Cash +$15 million, Common Stock ($20,000), Additional Paid-in-Capital ($14,980,000). d. Cash +$14,980,000, Common Stock ($20,000), Additional Paid-in-Capital +$15 million
- AsapSCENARIO: AMO Limited purchases shares of BEMI Limited by investing 1,000,000.00 ZMW. The dividend received on these shares reflects in the profit and loss account of the company. Further, the workers of the company receive an annual bonus and the dividend amount is taken into account in calculating the overall bonus figure.A few years later, AMO Limited transfers the shares of BEMI Limited to CUMI Limited, which is a wholly owned subsidiary of AMOLimited. Post transferring of the shares, the dividends do not reflect in the accounts of AMO Limited. This leads to a reduction in the overall bonus amount figure. Is AMO Limited legally allowed to do so? Which legal theory needs to be mentioned here?Mohan Company owned all of Beatty Incorporated. Although the Investment in Beatty account had a balance of $862,000, the subsidiary's 12,000 shares had an underlying book value of only $55 per share. On January 1, 2024, Beatty issued 4,000 new shares to the public for $75 per share. How does this transaction affect the Investment in Beatty account? Multiple Choice O O O It should be decreased by $225,000. It should be increased by $225,000. It should be increased by $9,500. It should be decreased by $9,500. It is not affected since the shares were sold to outside parties.