Webster Corporation acquired 25% of the outstanding common stock of Digest Inc. on January 1, 2022. The purchase price was $2,300,000 for 60,000 shares. Digest declared and paid a $1.10 per share cash dividend on June 30, 2022. The fair market value of the Digest stock at the end of 2022 is $42 per share. Webster can not exert significant influence over Digest and accounts for the investment as an equity investment. This is Webster's only equity investment. At December 31, 2022 the investment asset will be reported on Webster's balance sheet at what amount? $2,300,000 $2,484,000
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Webster Corporation acquired 25% of the outstanding common stock of Digest Inc. on January 1, 2022. The purchase price was $2,300,000 for 60,000 shares. Digest declared and paid a $1.10 per share cash dividend on June 30, 2022. The fair market value of the Digest stock at the end of 2022 is $42 per share. Webster can not exert significant influence over Digest and accounts for the investment as an equity investment. This is Webster's only equity investment.
At December 31, 2022 the investment asset will be reported on Webster's balance sheet at what amount?
- $2,300,000
- $2,484,000
- $2,520,000
- $2,434,000
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- On January 2, 2022, Promenade Company purchased 25% of Twilight Company’s ordinary shares; no goodwill resulted from the purchase. Promenade appropriately carries this investment at equity and the balance in Twilight’s investment account was P3,800,000 at December 31, 2022. Twilight reported net income of P2,400,000 for the year and paid dividends amounting to P960,000 during 2022. How much did Promenade pay for its investment in Twilight? Present solution in good accounting formOn January 2, 2022, Promenade Company purchased 25% of Twilight Company's ordinary shares; no goodwill resulted from the purchase. Promenade appropriately carries this investment at equity and the balance in Twilight's investment account was P3,800,000 at December 31, 2022. Twilight reported net income of P2,400,000 for the year and paid dividends amounting to P960,000 during 2022. How much did Promenade pay for its investment in Twilight?On January 1, 2021, X Inc. purchased 25% of the voting shares of Y Inc. However, due to a system crash, the initial amount of consideration paid for this 25% has been lost. X uses the equity method. X has significant influence over Y. Calculate the Value of the initial purchase X Inc. paid for its 25% ownership (i.e. January 1, 2021), given the following information that you were able to find: Value of the Investment account in Y Inc. at the end of 2023 was $97,000 Y's net income and declared dividends for the following three years are as follows: Net Income (loss) Dividends 2021 $50,000 $20,000 2022 $70,000 $80,000 2023 $30,000 $60,000
- On January 2, 2022, Promenade Company purchased 25% of Twilight Company'S ordinary shares: no goodwill resulted from the purchase. Promenade appropriately carries this investment at equity and the balance in Twilight's investment account was 3,800,000 at December 31, 2022. Twilight reported net income of 2, 400, 000 for the year and paid dividends amounting to 960,000 during 2022. How much did Promenade pay for it's investment?On January 1, 2024, Headlands Ltd., a private company reporting under ASPE, purchased 25% of the common shares of Blue Corporation for $203,000. Blue reported profit of $99,000 for 2024 and paid dividends of $13,900 on December 31, 2024. Headlands's year end is December 31. Assuming that there is not a quoted market price for Blue's shares, and that Headlands elects to report investments with significant influence using the cost method, prepare the required journal entries. (Record entries in the order displayed in the problem statement. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Date Account Titles く Debit CreditOn January 1, 2022, Wayne Corporation acquired 55,000 common shares of Garth Company for $30 each. At the time, Garth had 687,500 common shares outstanding. The investment was classified as FV-NI. During 2022, Garth reported net income of $800,000 and did not declare or pay dividends. At the end of 2022, the fair value of Garth’s shares was $35 per share. REQUIRED: Prepare Wayne Corporation’s journal entries for the investment in Garth for the 2022 fiscal year. Please don't give image based answer..thanku
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