On January 1, 2020, HND Industrial ProductsCompany acquired 400,000 shares at $ 50per share of XYZ Cables Company, whichrepresents 20% ownership.RequiredRecord the following transactions in thebooks of HND Industrial Products Company.(assuming there is significant influence andinsignificant influence)(a) Record the acquisition entry done by HNDCompany on January 1, 2020(b) The XYZ Cables had reported net incomeof $ 800,000 for the year 2020(c) XYZ cables announced and paid cashdividends of $ 200,000,(d) On December 31, 2020, XYZ Cables shareshave been valued at $ 52 per share, and HNDstill owns 400,000 sharesOn December 31, 2021, XYZ Cables shareswould be valued at $ 51 per share, and HNDCompany will own 400,000 shares

Common stock: Common stock is called equity shares. Its shareholders are the owners of the company…

On January 1, 2020, HND Industrial Products Company acquired 400,000 shares at $ 50 per share of XYZ Cables Company, which represents 20% ownership. Required Record the following transactions in the books of HND Industrial Products Company (assuming there is significant influence and insignificant influence)

On January 1, 2020, HND Industrial Products Company acquired 400,000 shares at $ 50 per share of XYZ Cables Company, which represents 20% ownership. Required Record the following transactions in the books of HND Industrial Products Company (assuming there is significant influence and insignificant influence)

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter12: Intangibles

Section: Chapter Questions

Problem 18E

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