Bryan sold the following shares of stock of domestic corporations which he bought for investment purposes Selling price Selling expense Cost Listed and Traded Not Listed and Traded 250,000 143,680 12,000 3,680 118,000 80,000
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- Dougie sold the following stocks in year 5: Date Purchased Stock Cost Date Sold Proceeds from Sale 54.000 $10,000 V6/YR3 12/31/YR5 $3.000 $12,000 $14,000 4/21/YR4 12/31/YRS $12,000 $12,500 12/31/YRS $13,800 What is the overall net capital gain/loss of the above transactions and what is the tax treatment of the gain/loss? Y 7/2/YRS 12/31/YRS 11/30/YRS Multiple Cholce $5,300 LTCG taxed at preferential rates $5,300 STCG taxed at ordinary rates $5,000 LTCG taxed at preferential rates and $30O STCG taxed at ordinary rates $5,000 STCG taxed at ordinary rates and $300 LTCG taxed at preferential rates $4,700 LTCG taxed at preferential ratesCullumber Corporation reported the following information for 2021: Sales revenue Cost of goods sold Operating expenses Unrealized holding gain on available-for-sale securities Cash dividends received on the securities $1034000 For 2021, Cullumber would report comprehensive income of $241956. $237820. $200596. O $41360. 723800 113740 41360 4136Jacobson Company is considering an investment in the common stock of Biltrite Company. What are the accounting issues surrounding the recording of income in future periods if Jacobson purchases: a. 15% of Biltrite’s outstanding shares. b. 40% of Biltrite’s outstanding shares. c. 100% of Biltrite’s outstanding shares. d. 80% of Biltrite’s outstanding shares.
- Received a $400 dividend from our investment in Masco Company stock. The investment is treated as an equal method investment. What is the general journal entry?A. Find the net proceeds of the stocks on the table below. Expenses Name of Stock Shares Held Selling Price per Share (Commission, taxes and Fees) Net Proceeds 1. Food Corporation 2. Property Holdings 3. Power Corporation 4.Transportation Corporation 100 P1,040.00 P2,640.00 250 P500.00 P1,720.00 80 P1,480.00 P1,880.00 300 P320.00 P2,240.00Crane Company provided the following information on selected transactions during 2021: Purchase of land by issuing bonds Proceeds from issuing bonds Purchases of inventory Purchases of treasury stock Loans made to affiliated corporations Dividends paid to preferred stockholders Proceeds from issuing preferred stock Proceeds from sale of equipment $1100000 $4113000. $3625000. O $3222000. O $4422000. 3040000 3710000 602000 1480000 403000 1590000 301000 The net cash provided by financing activities during 2021 is
- The investments of Harlon Enterprises included the following cost and fair value amounts ($ in millions): Fair Value, Dec. 31 Equity Investments Cost 2021 2022 A Corporation shares $ 50 $ 29 N/A B Corporation shares 65 65 $ 67 C Corporation shares 30 N/A 29 D Industries shares 60 61 65 Totals $ 205 $ 155 $ 161 Harlon accounts for its equity investment portfolio at fair value through net income. Harlon sold its holdings of A Corporation shares on June 1, 2022, for $30 million. On September 12, it purchased the C Corporation shares. Required:1. What is the effect of the sale of the A Corporation shares and the purchase of the C Corporation shares on Harlon’s 2022 pretax earnings?2. At what amount should Harlon's securities equity investment portfolio be reported in its 2022 balance sheet? (For all requirements, enter your answers in millions, (i.e., 10,000,000 should be entered…Detcrmine the basis of stock in the tands of the sharcholder in cach of the followinginstances. Assume that the 80% rule is met in all cases.a. Contribution of property with a basis of $1.000 and an FMV of $1.400.b. Contribution of property with a basis of $3,000 and an FMV of $3.800. The stockholderalso received $500 cash from the corporation as part of the stock transaction.Contribution of property with a basis of $8,200 and an FMV of $12.500. The stock-holder also received property with an kiMV of $1.700 from the corporation as part ofthe stock transachion.d. Contribution of a building with anFMV of $200.000. a mortgage assumed by thecorporation) of $100.000 and a basis of S19s onContribution of a building with an FMV of $1.700.000, a mortgage (assumed by thecorporation) of $1.000.000, and a basis of $635.000.Bean Corporation purchased 35% of the outstanding shares of common stock of Williams Corporation as a long-term investment. Subsequently, Williams Corporation reported net income. What journal entry would Bean Corporation use to record its share of the earnings of Williams Corporation? debit Cash: credit Dividend Revenue debit Investment in Williams Corporation Stock: credit Cash debit Cash: credit Investment in Williams Corporation debit Investment in Williams Corporation; credit Income of Williams Corporation
- Identify which category of shareholders’ equity is affected by each item and briefly explain how it is affected. 91. Donation of a plant site to the company.92. 92. Purchased treasury share (cost method).93. 93. Declaration of cash dividend payable next period.94. 94. Unrealized loss on investment in securities available for sale.95. 95. Sale of additional ordinary shares of the corporation.96. 96. Sold the company’s ordinary shares on credit.97. 97. Corrected an accounting error (expense) from a prior period.98. 98. Restricted retained earnings by making an entry equal to the cost of treasury share purchased.99. 99. Exchanged the corporation’s ordinary shares for land.100. 100. Investor tendered their convertible preferred share for the ordinary shares of the corporation.Cullumber Company's equity securities portfolio which is appropriately included in current assets is as follows: Catlett Corp. Lyman, Inc. O O $-7440. O $-20400. O $0. O $-130740. December 31, 2021 Cost O $23000 loss. O $14000 loss. - $0. O $9000 gain. $150000 Cash $296000 146000 Cash Ignoring income taxes, what amount should be reported as a charge against income in Cullumber's 2021 income statement if 2021 is Cullumber's first year of operation? Debt Investments Premium on Bonds Cash Current Attempt in Progress Sunland Company purchased $2700000 of 9%, 5-year bonds from Cheyenne, Inc. on January 1, 2021, with interest payable on July 1 and January 1. The bonds sold for $2830740 at an effective interest rate of 8%. Using the effective-interest method, Sunland Company decreased the Available-for-Sale Debt Securities account for the Cheyenne, Inc. bonds on July 1, 2021 and December 31, 2021 by the amortized premiums of $10020 and $10380, respectively. Debt Investments Eair Value $127000…How much is the unrealized gain (loss) recognized in other comprehensive income on December 31, 20x1? Karen Co. purchased the following equity securities on January 1, 20x1 for a total amount of P360,000. Cost Alaska Co. preference shares P200,000 160,000 Valdez Co. ordinary shares Totals P360,000 The shares did not qualify for recognition as held for trading, thus they were classified as investment in equity securities measured at fair value through other comprehensive income. On December 31, 20x1, the portfolio of Karen Co. comprised the following. Fair value - 12/31/x1 Alaska Co. preference shares P240,000 60,000 Valdez Co. ordinary shares Total P300,000 On December 31, 20x2, the portfolio of Karen Co. comprised the following: Fair value-12/31/x2 Alaska Co. preference shares P220,000 Valdez Co. ordinary shares 180,000 Total P400,000 On February 2, 20x3, all of the Alaska Co. preference shares were sold for P160,000 net of transaction costs. 60,000 100,000 O (60,000)