9. 'Joe Co. owns 25% of the outstanding ordinary shares ofMonkey Co. Monkey has outstanding noncumulativepreference shares with aggregate par value of P5,000,000 andfixed dividend rate of 5%, none of which is held by Joe.Monkey reported P2,800,000 profit for the year and declareddividends of PS00,000 to preference shareholders and P900,000to ordinary shareholders. How much investment incomeshould Joe Co. recognize for the year?235 000C 637,500d. 1,050,000F00 .000

The investor recognizes the dividend income if it is declared by the company on their respective…

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Business

Accounting

nares with nd rate o

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter23: Corporate Restructuring

Section: Chapter Questions

Problem 12P

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Joe Co. owns 25% of the outstanding ordinary shares of Monkey Co. Monkey has outstanding noncumulative preference shares with aggregate par value of P5,000,000 and fixed dividend rate of 5%, none of which is held by Joe. Monkey reported P2,800,000 profit for the year and declared dividends of P800,000 to preference shareholders and P900,000 to ordinary shareholders. How much investment income should Joe Co. recognize for the year?
May I ask for an explanation/solution to the question for a better understanding. Thank you! DDD Company received dividends from share investments during the current year: a) A share dividend of 4000 shares from EEE Company when the market price of EEE's share was P20. DDD Company owns less than 1% of EEE's share capital. b) A cash dividend of P150,000 from LLL Company in which DDD Company owns a 25% interest. A majority of LLL's directors are also directors of DDD Company. What amount of dividend revenue should be reported for the current year?
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? 704,000 800,000 512,000 770,000
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The following information relates to Midas Ltd, a small but successful investment holdingcompany.(i) In April 2021, Midas Ltd purchased 100,000 £1.00 listed equity shares at a price of £5.00per share. Transactions costs were £5,000. At 31 December 2021, these shares weretrading at £5.30 per share. A dividend of £0.05 per share was received on 30 September2022.(ii) Midas Ltd also has an investment in a five-year bond which was purchased four yearsago.At 31 December 2021, the bond was valued at an amortised cost of £500,000 with a statedand effective interest rate of 8% (current market rates are 10%).This bond will be maturing on 31 December 2022 and Midas Ltd is expecting to receive only80% the principal but not the interest for the last year. Required(a) Show the figures relating to this investment to be included in Midas Ltd's financialstatements at 31 December 2021 on the basis that:(i) The shares were bought for trading(ii) The shares were bought as a source of dividend income and…
Blanco Co. received dividends from its common stock investments during the year ended December 31 as follows: • A cash dividend totaling $15,000 from its trading security investment in Fisher Corporation, when the market price of Fisher's shares was $20 per share • A cash dividend of $10,000 from Myler Corp. in which Blanco Co. owns a 32% interest How much dividend income should Blanco report in its income statement? Select one: O O O $25,000 $15,000 $10,000 $0
2. On January 1, 20X0, Station Inc. invested P2,000,000 cash in a joint venture for 50% interest. For the years ended December 31, 20X0, 20X1, and 20X2, the joint venture reported the following data: Net Income (Net Loss) P1,000,000 (6,000,000) 7,000,000 Dividend Distribution P300,000 Year 20X0 20X1 20X2 500,000 Required: Determine the following: a. Share in net loss or investment to be reported by Station Inc. for the year ended December 31, 20X1. b. The book value of Investment in Joint venture to be reported by Station Inc. as of December 31, 20X2.
6. Assad Corporation repurchases 10,000 of its shares for $12 per share. The shares were originally issued at an average price of $10 per share. How much gain or loss should Assad report on its statement of comprehensive income as a result of this transaction? a.$0 b.$20,000 loss c.$100,000 gain d.$20,000 loss and $100,000 gain
Q1. AUSTERE Co. owns 20% of SEVERE, Inc.'s ordinary shares. SEVERE also has outstanding cumulative 6% preference shares of ₱8,000,000, none of which is held by AUSTERE. Dividends are in arrears for three years as of year-end. SEVERE reported year-end profit of ₱4,000,000 and declared no dividends. How much is AUSTERE Co.'s share in the profit of the associate? Question options: a 800,000 b 512,000 c 770,000 d 704,000
Garrison holds a controlling interest in Robertson’s outstanding stock. For the current year, the following information has been gathered about these two companies: Garrison RobertsonSeparate $300,000 $200,000operating income (includes $50,000 intra-entity gross profit in ending inventory)Dividends paid ...32,000 50,000Tax rate . . . . . . . . . 40% 40% Garrison uses the initial value method to account for the investment in Robertson. Garrison’s separate operating income figure does not include dividend income for the current year.a. Assume that Garrison owns 80 percent of Robertson’s voting stock. On a consolidated tax return, what amount of income tax is paid?b. Assume that Garrison owns 80 percent of Robertson’s voting stock. On separate tax returns, what total amount of income tax is paid?c. Assume that Garrison owns 70 percent of Robertson’s voting stock. What total amount of income…
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. $600
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?