On January 1, 2021, Family Company purchased 10% of San Company's 100,000 outstanding ordinary shares for P500,000. On July 1, 2021, San declared and paid total dividends of P200,000. Ôn December 31, 2021, Family purchased an additional 20,000 shares of San for P1,500,000. San reported earnings of P3,000,000 for 2021. On December 31, 2021, the fair value of the 10% interest is 180% of the original cost. What amount should be reported as total income for 2021? O P520,000 O P420,000 O P400,000
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- On January 1, 2021, Manette Company acquired 100,000 ordinary shares of Nette Company for P6,000,000. At the date of purchase, Nette had 500,000 outstanding ordinary shares and shareholders' equity of P20,000,000. During the year 2021, Nette reported profit of P1,000,000 and declared and paid cash dividends of P1.50 per share. The fair value of Nette's share at December 31, 2021 was P68. What amount shall Manette Company recognize in profit or loss for the year 2021 if it is able to exercise significant influence over Nette Company as a result of the acquisition? A P950,000 B) P200,000 P350,000 P150,000On January 1, 2021, Family Company purchased 10% of San Company's 100.000 outstanding ordinary shares for P500,000. On July 1, 2021, San declared and paid total dividends of P200,000. On December 31, 2021, Family purchased an additional 20,000 shares of San for P1,500,000. San reported earnings of P3,000,000 for 2021. On December 31, 2021, the fair value of the 10% interest is 180% of the original cost. What amount should be reported as total income for 20217 O P520,000 O P420,000 OP400,000 O P900,000On January 1, 2021, Family Company purchased 10% of San Company's 100,000 outstanding ordinary shares for P500,000. On July 1, 2021, San declared and paid total dividends of P200,000. Ôn December 31, 2021, Family purchased an additional 20,000 shares of San for P1,500,000. San reported earnings of P3,000,000 for 2021. On December 31, 2021, the fair value of the 10% interest is 180% of the original cost. What amount should be reported as total income for 2021? O P520,000 O P420,000 O P400,000 O P900,000
- Grouper Inc. acquired 10% of the outstanding common shares of Gregson Inc. on December 31, 2019. The purchase price was $904,000 for 45,200 shares, and is equal to 10% of Gregson’s carrying amount. Gregson declared and paid a $0.80 per share cash dividend on June 15 and again on December 15, 2020. Gregson reported net income of $516,000 for 2020. The fair value of Gregson’s shares was $24 per share at December 31, 2020. Grouper is a public company and applies IFRS. Prepare the journal entries for Grouper for 2019 and 2020, assuming that Grouper cannot exercise significant influence over Gregson. The investment is accounted for using the FV-OCI model. (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 0 for the amounts.) Date Account Titles and Explanation Debit Credit choose a transaction date…Grouper Inc. acquired 10% of the outstanding common shares of Gregson Inc. on December 31, 2019. The purchase price was $904,000 for 45,200 shares, and is equal to 10% of Gregson’s carrying amount. Gregson declared and paid a $0.80 per share cash dividend on June 15 and again on December 15, 2020. Gregson reported net income of $516,000 for 2020. The fair value of Gregson’s shares was $24 per share at December 31, 2020. Grouper is a public company and applies IFRS. What amount is reported for the investment in Gregson shares on the December 31, 2020 statement of financial position under each of these methods in Fair Value Method and Equity Method? Fair ValueMethod Equity Method Investment $enter a dollar amount $enter a dollar amount Where is the investment reported on statement of financial position? The Investment accounts under both Fair Value Method and Equity Method are likely to be included in current assets / non-current assets /…Stellar Co. acquired 25% of the 500,000 shares of outstanding common stock of Overload Inc. on December 31, 2020. The purchase price was $3,550,000. Overload declared and paid $1.10 per share cash dividends on June 18, 2021, and on November 29, 2021. Overload reported net income of $1,200,000 for 2021. The fair value of Overload common stock was $28 per share at December 31, 2021. (a) Prepare the journal entries for Stellar Co. for 2021, assuming that Stellar cannot exercise significant influence over Overload. The securities should be classified as available-for-sale. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit choose a transaction date enter an account title enter a debit amount…
- On February 2, 2020, Groove Company purchased 15% of Pop Company's common stock for $54,00O. Pop's net income for the years ended December 31, 2020, and December 31, 2021, were $16,000 and $54,000, respectively. On July 30, 2020, Pop declared and paid a dividend of $66,500. On December 31, 2020, the fair value of the Pop stock owned by Groove had increased to $72,000. How much should Groove show in the 2020 income statement as income from this investment? Multiple Choice $18,000. $9,975. $24,000. $27,975.On January 1, 2021, ABC purchased 90% of the outstanding shares of JKL Company at a cost of P1,632,000. On that date, JKL had P1,020,000 worth of outstanding shares and P1,020,000 worth of accumulated profits. For 2021, ABC Company had income of P571,200 from its own operations and paid dividends of P306,000. For 2021, JKL Company reported income of 132,600 and paid dividends of P61,200. All of the assets and liabilities of JKL have book values equal to their market values. On January 1, 2021, ABC sold equipment to JKL for P204,000. The book value of the equipment on that date was P244,800. The loss of P40,800 is reflected in the income of ABC indicated above. The equipment is expected to have a useful life of five years from the date of sale. In the December 21, 2021 consolidated statement of financial position, the net income attributable to equity holders of ABC should be presented at: Your answerOn January 1, 2021, ABC purchased 90% of the outstanding shares of JKL Company at a cost of P1,632,000. On that date, JKL had P1,020,000 worth of outstanding shares and P1,020,000 worth of accumulated profits. For 2021, ABC Company had income of P571,200 from its own operations and paid dividends of P306,000. For 2021, JKL Company reported income of 132,600 and paid dividends of P61,200. All of the assets and liabilities of JKL have book values equal to their market values. On January 1, 2021, ABC sold equipment to JKL for P204,000. The book value of the equipment on that date was P244,800. The loss of P40,800 is reflected in the income of ABC indicated above. The equipment is expected to have a useful life of five years from the date of sale. In the December 21, 2021 consolidated statement of financial position, what will be the net income attributable to equity holders of ABC?
- On July 1, 2021, Diamante Co. paid P1,000,000 for 100,000 ordinary shares (40%) of Ashes Co. At that date, Ashes' net assets totaled P 2,500,000 and the fair values of all Ashes identifiable assets and liabilities were equal to their carrying amount. Ashes reported net income of P500,000 for 2021, of which P300,000 was for the 6 months ended December 31, 2021. Ashes paid cash dividends of P 250,000 on September 30, 2021. What amount of income should Diamante report from the investment in Ashe Co.? Start Select the correct response: essments P 120,000 erences P 100,000 Fessors P 80,000 dents P 200,000 abus ( Previous Continue > pursesOn January 2, 2021, Normal Inc. acquired 15% interest in Laco Co. by paying P1,500,000 for 7,500 ordinary shares. On this date, the net assets of Laco Co. totaled P9 million. The investment was classified as a financial asset at fair value through other comprehensive income. The fair values of Laco Co.s identifiable assets and liabilities approximate their book values. On August 1, 2021, Normal received dividends of P4 per share from Laco Co. Fair value of the stocks on December 31, 2021 was P190. Net income reported by Laco for the year ended amounted to P1,500,000. On July 1, 2022, Normal Inc. paid P1 million to purchase 5,000 additional shares of Laco Co. from another shareholder. On this date the fair value of the net assets exceeds carrying value by P500,000 attributable to depreciable asset with estimated remaining life of 5 years. On February 1, 2022, cash dividends of P5 were received while dividends of P6 were received on August 1, 2022. Net income reported for the year ended…On July 1, 2019, Joltik Company purchased 80% of the outstanding shares of Galvantula Company at a cost of P4,000,000. On that date, Galvantula had P2,500,000 of capital stock and P3,500,000 of retained earnings. For 2019, Joltik had income of P1,400,000 from its separate operations and paid dividends of P750,000. For 2019, Galvantula reported income of P325,000 and paid dividends of P150,000. All the assets and liabilities of Galvantula have book values equal to their respective fair market values. Assume income was earned evenly throughout the year except for the intercompany transaction on October 1. On October 1, 2019, Joltik purchased a machinery from Galvantula for P500,000. The book value of the machinery on that date was P600,000. The loss of P100,000 is reflected in the income of Galvantula indicated above. The machinery is expected to have a useful life of 5 years from the date of sale. In the December 31, 2019 consolidated balance sheet, how much is the consolidated net…